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Levies of Personal and Real Property


A levy is a legal seizure of your property to satisfy a tax debt. A levy can be used to seize a Taxpayer's wages, commissions and other income, as well as other valuable assets of the Taxpayer, including bank accounts, stocks, bonds, automobiles and Individual Retirement Accounts.  A levy can also be used to seize real estate, although as a general rule, the IRS does not seize personal residences.  Levies are different from liens in that the latter is a claim used as security for the tax debt, while the former actually seizes the property to satisfy the tax debt.


Procedure For Levy


Before the IRS will levy your property, three requirements must generally be met:


  1.     A tax has been assessed and a Notice and Demand for Payment has been sent to the               Taxpayer;

  2.     The Taxpayer has not paid the tax; and

  3.     A Final Notice of Intent to Levy and Notice of A Right to A Hearing was sent to the                   Taxpayer at least 30 days prior to the levy.


Options Prior To Levy


Prior to the expiration of the thirty day period after a Final Notice of Intent to Levy and Notice of A Right to A Hearing was sent to the Taxpayer, the Taxpayer or the Taxpayer's representative may ask an IRS manager to review the case, or the Taxpayer or the Taxpayer's representative may request a Collection Due Process (CDP) Hearing with the Office of Appeals by filing a request for a Collection Due Process (CDP) Hearing with the IRS office listed on the notice.   Again, the request must be filed within 30 days of the date on the notice.  At the conclusion of the hearing, the Office of Appeals will issue a determination.  The Taxpayer has thirty days after the determination date to bring a suit to contest the determination.

Levies of Bank Accounts


When a bank account is levied, the bank must hold the funds the Taxpayer has on deposit, up to the amount the Taxpayer owes, for 21 days.  The levy only applies to the funds that are actually on hand on the day the levy is made.  It does not apply to deposits that are made after the date of the levy (unless an additional levy is made).  After 21 days, the bank must send the money to the IRS.


Options After The Levy


If a Levy creates a hardship, for example, the Taxpayer cannot make a mortgage or rent payment as a result of the Levy, we may be able to assist by Filing a Request for a Taxpayer Assistance Order. 


Get a Game Plan!


A well devised plan for discharging tax indebtedness is important and almost impossible to achieve without the help of an experienced professional who understands the process or various processes that may be involved, what is possible and what is not, and the full range of remedies available.  Remember, there are often multiple solutions to the settlement of a tax debt.  As an attorney with over 30 years in practice, John Kachmarsky and the staff at the Law Office of John Kachmarsky have that experience and knowledge.


Contact our Charleston, South Carolina law office today to make an appointment for an initial consultation.



Charleston Tax Attorney, John Kachmarsky, and the Law Office of John Kachmarsky provide legal services in the areas of Asset Protection, LLC (Limited Liability Company) Formation, Business Formation, Contracts, Conservatorships, Powers of Attorney, Estate Administration, Probate, Estate Planning, Wills, Trusts, FINRA Disputes, Securities Losses, Income Tax, Tax Planning, Tax Controversy, Tax Litigation, Tax Settlement, and Offer in Compromise to individual and business clients in Charleston and throughout South Carolina and the U.S. including communities such as North Charleston, Summerville, Mt. Pleasant, Hilton Head Island, Myrtle Beach, Georgetown, Florence, Beaufort, Moncks Corner, Goose Creek, Isle of Palms, Daniel Island, James Island, Charleston County, Berkeley County, Dorchester County, Beaufort County, Horry County, Georgetown County, Florence County and Colleton County.

John Kachmarsky is a Charleston Tax Attorney with a Master of Laws Degree in Taxation.  Charleston Tax Attorney, John Kachmarsky, is licensed to practice law in South Carolina and Georgia and represents clients before the Internal Revenue Service and the United States Tax Court.

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