Will the IRS release a Levy based on economic hardship?
- October 11, 2011
- David Greene
- Comments Off on Will the IRS release a Levy based on economic hardship?
Usually, in order to release a levy one must enter into an Installment Agreement or propose an Offer in Compromise. One must also be current with all tax filings since 2004. Without the proposed solution and
being current with all tax filings the IRS will not release the levy. However, the Tax Court recently ruled that if a levy is creating an economic hardship, then Sec. 6343 (a)(1)(D) requires that the levy be released even if the taxpayer is not in compliance. If the taxpayer’s financial information verifies that he is in dire financial straits, he should be placed in Currently Not Collectible status and the levy immediately released.