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Levy: Seizure of Property (Part IV)

Topic: Levy: Seizure of Property (Part IV)

The IRS will “release” a levy if it was issued improperly…

The IRS will also release a levy if it was issued improperly. For example, they will release a levy if it was issued:

• Against property exempt from seizure,

• Prematurely,

• Before the IRS sent you the required notice,

• While you were in bankruptcy and an automatic stay was in effect,

• When the expenses of seizing and selling the levied property would be greater than the fair market value of the property,

• While an Installment Agreement request, Innocent Spouse Relief request, or Offer in Compromise was being considered or had been accepted and was in effect, or

• While the Office of Appeals or Tax Court was considering a collection due process case and the levy wasn’t a Disqualified Employment Tax Levy to collect employment taxes, a state refund, a jeopardy levy, or to collect the tax debt of federal contractor.

• While the Office of Appeals or Tax Court is considering an appeal of the denial of innocent spouse relief.

(IRS Publication 594 and IRS.gov) (TTT 07/21/2020)