Dealing with an IRS tax levy can be an overwhelming and frightening experience for taxpayers. By the time the IRS issues a levy, many individuals feel as if they’ve already lost the battle. They may be plagued by questions and concerns, unsure of who to turn to, or even uncertain if there’s any assistance available to help them navigate this challenging situation.
As a CPA, tax professional, or enrolled agent, you play a critical role in providing support and guidance to clients facing an IRS tax levy. Whether your client is already in crisis or showing warning signs that an IRS levy notice may be imminent, you have the expertise and knowledge to become their go-to resource for help.
To effectively support your clients dealing with an IRS tax levy, consider taking the following steps:
Let Your Clients Know Who to Call
To help your clients, you need to let them know that you’re available to help. Taking steps to proactively build relationships with your clients gives them a lifeline when they need one the most. And it doesn’t need to be a difficult or overwhelming task.
Take just a few minutes every week to share posts on social media about your tax relief services. Periodically reach out to your client list and put the word out that you are a Tax Resolution Specialist. There’s nothing wrong with asking for those referrals and it’s also a good idea to reach out to clients who have had challenges in the past to check in and see if they need additional help.
Preemptive Measures Against an IRS Tax Levy
Long before an IRS levy is issued, your client will have received a bill for payment and several letters to make sure he or she knows what’s due. If your client ignores these warnings the next letter the IRS sends is a Final Notice of Intent to Levy. You do have 30 days from the IRS’s Notice of Intent to Levy to appeal and stop the clock.
Your proactive posts, emails, or check-in might just be what motivates your client into action before the situation escalates. Ideally, your client will come to you before the levy is issued and before their hard-earned money is frozen. At that time, you will request a 30-60 day hold and then work with your client to get any back tax returns prepared and set up an installment agreement with the IRS. You can also make an offer in compromise to see if the IRS will settle for less. Your client’s inability to pay and maintain reasonable living expenses could lead to a temporary non-collectible (CNC) status to give them more time.
A Guide Through the Process
If you can’t help your client avoid the levy, you can at least help them prepare to protect themselves as much as possible. You have 21 days from when the IRS levy is issued to when money is removed—that’s 21 days to maximize your efforts to communicate with the IRS, make payment agreements, or to discharge the tax debt.
The 21-day period is also the time to make sure the IRS is only levying money that belongs to the client. While the IRS can garnish federal benefits to pay a tax debt, if you can prove that your client’s name on joint bank accounts and car titles is only there for convenience, you can potentially have those assets released.
How IRS Solutions Can Help Resolve and IRS Tax Levy
By positioning yourself as a knowledgeable and compassionate advocate for clients facing an IRS tax levy, you can make a meaningful difference in their lives while also attracting more business to your tax resolution practice.
The IRS Solutions™ Software can guide you in filling out all the paperwork you’ll need to stop or end the levy including an IRS levy appeal. The intelligent tax resolution software will analyze your client’s IRS transcripts and provide a step-by-step process that finds the best result for your client. IRS Solutions also provides a portal that allows the client to help enter in all the data you’ll need to make the process seamless.
If you don’t know what to charge for your tax resolution services or if you’re worried about marketing tax resolution services to your clients, just consult our FREE Tax Resolution Pricing & Marketing Survival Guide. IRS Solutions is available in affordable monthly and annual subscriptions so you can serve your clients year-round by providing tax resolution services with confidence. As a member, you’ll gain access to incredible features and informative monthly Case Study Webinars conducted by a tax resolution specialist on the 4th Thursday of Every Month from 10am-11am PDT.