What Are the Chances I Will Be Levied by the IRS?

On: October 19, 2018

This is a somewhat impossible question to answer. It depends on your situation. If you owe less than $5,000, you will be below the radar for purposes of having the IRS file a lien against your property, wages or bank accounts. As this is the first step in the IRS’ collection procedure, a levy is highly unlikely. Between $5,000 and 10,000, you are in a position for which the IRS can levy you, but will likely seek any other solution. Over $10,000 places you in a levy situation. The IRS must give you proper notice by US mail and will give you every opportunity to resolve your tax liability short of their harshest collections tool.

You may not know how much you owe the IRS or what your particular situation is regarding the IRS. Most tax professionals will initially call the IRS and ask them about a particular taxpayer’s account and order it in writing. Tax Attorneys, CPAs and Enrolled Agents can all do this with the proper power of attorney (IRS Form 2848). Only a tax attorney is authorized to enter into negotiations without the taxpayer’s specific approval of terms. This can prove handy during the first phone call with the IRS.