Proven Methods That Can Be Used to Stop a Tax Levy

Hi, folks. This is attorney Michael Mack. How do you stop an IRS tax levy once it starts? Well, I’ve got some good news for you. There’s a variety of proven methods that we use to stop an IRS tax levy once it starts. These methods, keep in mind, we use alone or in combination with each other to stop a levy.

One method is to show a violation of the law; in other words, the IRS must follow collection procedures in order to obtain a levy, and they often do not follow the law. They can’t do what they want when they want to, and when they violate their collection procedures, we can get an IRS tax levy to be released immediately.

Another method is to show benefit to the IRS. Here’s what I mean: will an alternative collection method better facilitate the collection of the tax? Over the years, we have carefully catalogued reasons upon which the IRS may accept as an alternative collection method than the levy. On that basis, the IRS will stop a tax levy.

Another method that we use is to show economic hardship. Now you may say, “Of course, there’s economic hardship!” and I get it. However, the IRS has its own standards. And it’s our job to make a compelling case for you that the tax levy is causing you or your business an economic hardship.

And, finally, I’ll leave you with this: bankruptcy. You may not want to think about bankruptcy, yet be open-minded. Bankruptcy can often be the most powerful way to stop the levy dead in its tracks, to wipe out the tax, to even get money back from the IRS.

As we deploy these methods, we also use powerful appeal rights if we don’t get our way the first time. There’s the due process appeal; there’s the equivalent hearing. We even have the ability to go to the local office and get an advocate to overrule an uncooperative revenue officer.

If you need help in getting a tax levy stopped, give us a call at (414) 771-9200 or at [email protected] I’m sure we can help you just like we’ve helped so many others. God bless.