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Published: May 1, 2018   |   Last Updated: November 18, 2020

TAS Advocates for Small Business to Receive a Return of Levy Proceeds

Every year, the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer’s tax issues. All personal details are removed to protect the taxpayer’s privacy.

 

A Power of Attorney contacted TAS for assistance with a small business taxpayer who was unable to pay his employees due to an IRS levy. The taxpayer had previously negotiated an installment agreement with an IRS Revenue Officer, and the taxpayer was making the installment agreement payments; however, the IRS had not released the Federal Payment Levy. The government sent levy payments of more than $200,000 to the IRS after the IRS granted the installment agreement.   

TAS advocated for the business owner to have the assigned revenue officer release the Federal Payment Levy and return the levy proceeds to the taxpayer. The officer promptly released the levy, but at first refused to return the levy proceeds to the taxpayer. The Local Taxpayer Advocate diligently advocated for the taxpayer and argued for return of the levy proceeds because the IRS levy should have released the levy when it granted the installment agreement. Ultimately, the revenue officer agreed to return the levy proceeds. The taxpayer received the funds and could then pay its employees.

Related tax issue: Levies

If you need information on a specific tax topic, visit the TAS Get Help resource. It offers a step-by step guide on what you can do to settle some IRS issues on your own, what your taxpayer rights are and other options available to help you get resolution. Most issues can be resolved directly by working with the IRS. However, if you have tried, but are still unable to resolve an IRS issue, learn more about whether TAS can help you: TAS eligibility.

When working with the Taxpayer Advocate Service, each individual or business taxpayer is assigned to an advocate who listens to the problem and helps the taxpayer understand what needs to be done to resolve their tax issue. TAS advocates will do everything they can to help taxpayers and work with them every step of the way. Occasionally we feature stories of taxpayers and advocates who work together to resolve complex tax issues. Read more TAS success stories.