Abating Internal Revenue Service Levies on Your Bank

Did the IRS Levy Your Bank or Employer?

When your work place notifies you that they have a Notice of Levy from the IRS instructing them to keep most all of your next paycheck is one of the worst feelings. Equally bad, is when your bank gets a Notice of Levy from the IRS and notifies you that they intend to deliver the funds in your bank account to them. When the IRS doesn’t comply with the statutory requirements and send the required notice a Notice of Levy is a nasty surprise. 26 USC § 6330 provides in pertinent part:

(a) Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.

26 USC § 6330 provides this respecting the timing and manner of service of the notice:

(a)(2) Time and method for notice
The notice required under paragraph (1) shall be-
(A) given in person;
(B) left at the dwelling or usual place of business of such person; or
(C) sent by certified or registered mail, return receipt requested, to such person’s last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.

When you accept the aforementioned notices and comprehend them timely, you should see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing (CDPH) is timely asked for “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” This provision renders the request for a Collection Due Process Hearing (CDPH) a highly effectual way to prevent an IRS levy on a bank account or paycheck.

In the instance in which a levy was received by an employer but the notice had not been served as required by the above statutes, I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to CDPH hearing request being sent. Now, only employees not knowledgeable about these provisions in the Internal Revenue Code (IRC) will be missing most of their pay. I’m mystified why everyone does not bring a halt to a levy sent by the IRS by timely requesting a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1). I make available the forms to competently request a CDPH hearing in a situation where the statutorily required notice has not been sent at www.irsterminator.com.

Timely requesting the hearing is of the highest priority in order to make these statutory provisions work. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include:

“The notice required under paragraph (1) shall include in simple and nontechnical terms-
(B) the right of the person to request a hearing during the 30-day period under paragraph (2);”

However, if the IRS never served you with the notice required by statute, it is impossible to verify when the 30 day period begins and ends. The free videos at www.irsterminator.com explain how to inform the IRS that their failure to serve you with the statutorily required notice renders your request for a hearing timely and entitles you to the suspension of collection activities including the levy at your bank or employer. Discussed on those videos are plans that I have come up with to keep collection activity suspended permanently which is the challenging part.

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