TAS Advocates For Return of Levy Proceeds

A taxpayer contacted TAS because the IRS had been levying their Social Security benefits for payment of an outstanding tax liability. The taxpayer was facing an economic hardship and needed the Social Security income for their necessary living expenses. 

The assigned case advocate determined that because of the taxpayer’s financial hardship, the IRS should release the levy. The case advocate developed a persuasive recommendation to not only release the levy but to suspend collection on the account and issue a refund for the last two years’ levy payments, the maximum allowed by law. 

The IRS agreed to release the levy, report the account as currently not collectible, and refund the last two years’ levy payments to alleviate the taxpayer’s financial hardship. 

In this case, TAS advocated to protect the taxpayer’s rights to challenge the IRS’s position and be heard and to a fair and just tax system. Read more about Taxpayer Rights. 

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