IRS abuse of its authority to Levy is all too common. IRS intimidation and abuse comes in a variety of forms and may include:
- Illegal levy of income and assets;
- Falsifying or destroying documents;
- Advising a taxpayer not to hire an attorney;
- Making false statements to a taxpayer or his representative;
- Wrongful or unjustified refusal to enter into installment agreements; and
- Wrongful or unjustified refusal to accept an Offer in Compromise.
Levies that are Prohibited
Pursuant to federal law, the IRS is prohibited from levying on the income or assets of an individual or business if doing so will create an economic hardship for the taxpayer. The law states that the IRS must remove a levy if satisfaction of the levy will make it impossible for the taxpayer to pay his reasonable basic living expenses. Reasonable basic living expenses include:
Housing, including utilities, homeowners insurance, homeowners association dues, and property taxes;
- Food;
- Clothing;
- Transportation;
- Federal, state and local taxes;
- Alimony and Child Support;
- Expenses necessary to the taxpayer's production of income, such as union dues and child care costs.
Dealing with the IRS is stressful for the average person. IRS intimidation and abuse make the process that much more stressful. However, the Taxpayer Advocate Service is there to help taxpayers resolve issues with the IRS when other avenues have failed. The Taxpayer Advocate Service is free and confidential. It is available to both individuals and businesses whose tax problems are creating a Financial Hardship or who cannot afford a to hire an attorney or CPA to assist them is dealing with the IRS.
Help from a Tax Lawyer for IRS Levies
It is virtually impossible for a layperson to thoroughly understand the ever-changing tax code and the Internal Revenue Manual. However, an experienced tax attorney has a working knowledge of current tax law and the Internal Revenue Manual and is in the best position to help you negotiate an installment agreement or an offer in compromise. A qualified tax attorney can also assist you in asserting legal defenses against IRS collections efforts.
