Wrongful IRS Levy: More Time to Challenge

This video was published by the IRS.

Have you or your business had wages or other assets seized or levied to pay off an IRS tax debt? If so, or if you believe the IRS seized the property in error, you now have more time to file a claim to get the money or property back.

You used to have nine months, but now for any seizure or levy that occurred on or after March 23, 2017, the time frame to file a claim depends on whether or not the IRS has sold the property. You have two years to file a wrongful levy claim if the IRS has sold the levied property. There is no time limit to file a claim if the IRS still has possession of the levied property.

By the way, if you ever receive a series of bills from the IRS, including one called “Final Notice of Intent to Levy and Your Right to a Hearing,” please contact the IRS right away. You may have options to pay off the tax you owe instead of having a levy placed on your property.

Meanwhile, you can get details from IRS Publication 4528, which can also walk you through filing a claim if you think your property was wrongfully seized. You can get Publication 4528 from irs.gov/pub4528.