IRS issues guidance on extended time for levy challenges

Individuals and businesses have additional time to file an administrative claim or to bring a civil action for wrongful levy or seizure, according to the IRS. An IRS levy permits the legal seizure and sale of property including wages, money in bank or other financial accounts, vehicles, real estate and other personal assets to satisfy a tax debt. The Tax Cuts and Jobs Act of 2017 (P.L. 115-97), the tax reform law enacted in December, extended the time limit for filing an administrative claim and for bringing a suit for wrongful levy from nine months to two years. If an administrative claim for return of the property is made within the two-year period, the two-year period for bringing suit is extended for 12 months from the date of filing of the claim or for six months from the disallowance of the claim, whichever is shorter. The change in law applies to levies made after Dec. 22, 2017, and on or before that date, if the previous nine-month period hadn’t yet expired. (IRS New Release, IR-2018-126, May 25, 2018.)

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