At Bryson Law Firm, LLC, we frequently represent Taxpayers through IRS Audits. One common issue we find when a Taxpayer comes in with an IRS Audit Letter and a copy of their 1040 Tax Return prepared by a paid preparer is that the tax return was incorrectly prepared, generated an inflated tax refund, and was designated as “self-prepared.”
The short answer – it depends. In order for the IRS to have the authorization to seize your physical property, such as money or land, the IRS must first issue a series of notices requesting that you remit payment for your outstanding balance. Eventually, the IRS will issue a Final Notice of Intent to Levy (FNIL; usually reflected as a CP90 or LT11 in the upper right-hand corner of the notice) which is your last chance submit payment. If you cannot afford to make payment in full, the FNIL provides you with a 30-day time frame to file a Collection Due Process Appeal. If no Appeal is filed and no resolution request has been submitted, then the IRS can move forward with a levy upon your banking account in order to collect the debt owed.
Unlike other creditors, the IRS has unprecedented power to collect unpaid debts. In fact, the IRS doesn’t have to seek court approval to file a lien or seize your property to satisfy your debts. Whereas an IRS tax lien is a claim on the taxpayer’s property, an IRS levy is much more intrusive and involves the actual seizure of a taxpayer’s property.
You’ve filed your 2016 return and after months of checking your account for your refund you’re still waiting, or maybe you got a letter from the IRS notifying you that they’re keeping your refund. You’re angry, annoyed, and frustrated and want to know how they can do that! The IRS can keep your refund for a variety of reasons such as a back tax balance, unfiled returns, delinquent child support obligations and even defaulted student loans. Your refund should arrive within 21 days of when you e-filed your return (6-8 weeks for mailed paper returns), and you can keep up with it my the status on the IRS website.