South Carolina Tax Levy Relief and Resolution

A levy is the IRS actually taking money or property to cover unpaid federal tax, as opposed to a lien, which only stakes a claim. It can hit your wages, a checking or savings account, money your customers owe your business, and certain other assets. The IRS has to send notices and offer you a hearing first, but once a levy lands, timing gets tight. Bank funds and wages are released on different schedules, so the first few days count.

You need a reason the IRS will accept to let go. That might be paying in full, setting up an installment agreement, getting Currently Not Collectible status, filing an Offer in Compromise, fixing an error in the account, or showing the levy is causing economic hardship. Almost every one of those requires your returns to be filed and your finances documented, so we get started on both right away.

It must warn you first, but it can feel like it did not. Before a levy, the IRS sends a Notice and Demand for Payment, then a Final Notice of Intent to Levy with your hearing rights. Those letters go to the last address the IRS has on file, so if you moved or a letter got lost, the levy may be the first thing you notice. After a bank levy, the bank generally holds the funds for 21 days before sending them to the IRS, which is the window to act.

No. Federal rules leave part of each paycheck exempt, based on your filing status and number of dependents. Even so, what's left for the IRS can be a big share of your pay, especially if the IRS doesn't have current information about your household. If the garnishment leaves you unable to cover basic expenses, or once a payment plan is in place, we can request a release.

It's a hardship status. If paying anything toward the debt would leave you unable to cover necessary living costs, or would keep a business from covering basic operating expenses, the IRS can mark the account Currently Not Collectible. Levies stop, but the debt remains and interest keeps running. The IRS may look at your income again later, so it works best as breathing room while circumstances improve.

Possibly. An Offer in Compromise is based on what the IRS figures it could reasonably collect from your income and assets over time, and the bar is high. You'll need full financial disclosure, all returns filed and current estimated payments made. In the meantime, the levy itself still needs attention, so we usually work on immediate relief while we check whether an offer makes sense.

Usually. The IRS generally won't approve an installment agreement, CNC status or an offer while returns are missing. And if the IRS prepared substitute returns for those years, they often leave out deductions and dependents, which inflates the bill. Filing accurate returns can bring the balance down and clear the way for relief.

Yes. Our founder is an Enrolled Agent, which is a federal license to represent taxpayers before the IRS on any tax issue, including levies, collection cases, audits and appeals. Once you sign Form 2848, we can call the IRS collection unit, request a release and handle the paperwork for you, wherever in South Carolina you live.