The Tax Cuts and Jobs Act (TCJA) and Wrongfully Levied Property
The Tax Cuts and Jobs Act (TCJA) has extended the time period taxpayers have to file a claim for wrongfully levied property. Taxpayers previously had nine months to file certain wrongful levy claims. Now, the period is two years.
There’s more good news for taxpayers—the new provision applies to all levies made after December 22, 2017 and levies made before this time if the nine-month period had not expired as of this date. If the IRS wrongfully, you have just been given an extra 15 months to file a wrongful levy claim.
How Do Wrongful Levies Happen?
Wrongful levy claims are typically filed by someone who does not owe the IRS any tax. The IRS mistakenly believes that a piece of property belongs to a taxpayer with delinquent tax debt and levies the property, but the property actually belongs to someone else.
You must make a wrongful levy claim in writing and request that the IRS either return the property or give you the proceeds they received from selling the property. Consult a tax attorney if you need assistance filing a wrongful levy claim.
Time Periods for Wrongful Levy Claims
If the IRS is still in possession of the levied property, they can return it to you at any time. There is no limit on how long you have to file a wrongful levy claim and get the property back.
However, you can’t be sure whether the IRS still has the property, so it’s best to file a wrongful levy claim as soon as possible. If the IRS has sold the levied property, you have two years to file a claim and receive the proceeds from the sale.
You will need to include information in your written request about the levied property, your basis for claiming an interest in the property, the date of the levy, and the name and address of the person against whom the tax was assessed.
If the IRS rejects your wrongful levy claim, you have the right to appeal this decision through the collection appeals program. You may also bring a civil action in district court.
If the IRS wrongfully levied your property to satisfy someone else’s tax debt, contact a tax attorney to discuss your legal options right away.
Get help filing a wrongful levy claim by calling Ayar Law at 248-262-3400 or filling out our.
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