Getting Back Levied Taxes

Today TaxMama hears from Chan in the TaxQuips Forum, who is catching up. “IRS and VA state (I live in Virginia) have already taken more money from my bank and brokerage accounts than I actually owe them. Would I be getting back the amount that they levied in excess of what I actually owe?  (I was late in meeting the deadline the IRS officer lady gave me, since it was 5 years worth of paperwork I had to sort out. So she levied my accounts.)”

 Dear Chan,

Congratulations! Good for you.

OK, to get money back that IRS levied, you MUST file your tax returns (and/or claim for refunds) within 24 months of the payment (or levy). If they JUST took your money, you’re fine. You’ll get your refunds.

Once you file the tax returns showing the correct tax liability, be SURE to follow up with IRS to make sure they release your funds. Keep bugging them every month until your money is back in your hands!

For future reference, if you’re not going to be able to meet a promised deadline, just call IRS and let them know. They will log in that you called and add 30 days or so to your deadline.

And remember, you can find answers to all kinds of questions about tax levies and other tax issues, free. Where? Where else? At www.TaxMama.com.

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