New tax laws enacted in December 2017 extend the time allowed to file an administrative claim or sue for wrongful levy or seizure. The new limit is two years.
Here are the facts about levies and the time extension:
- The IRS can seize and sell property to pay a tax debt. “Property” is defined as wages, money in your bank account, vehicles, and real estate.
- The timeline applies to property the IRS has already sold.
- If you make an administrative claim against the IRS within the two years, the time period is extended for either one of two periods (whichever is shorter):
- 12 months from the date of the claim filing.
- Six months from the date the IRS disallowed the claim.
- The rule applies to tax levies made before, on, or after December 22, 2017, as long as the previous nine-month period (prior to the levy) hasn’t yet expired.
- If you receive a “Final Notice of Intent to Levy and Notice of Your Right to A Hearing,” contact the IRS immediately. This may allow you to make arrangements to pay the tax debt before the IRS proceeds with a property levy.
Other details may apply, and you can find more information on the IRS website.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.
Tip adapted from IRS.gov