Webinar Review: “don’t Have A Seizure” Protecting Your Clients From The IRS Collection Division

1. If a letter 1058 Final Notice of Intent to Levy is received how long do you have to appeal the intended levy?

60 days

30 days

21 days

10 days

Answer B – 30 days
In order to appeal the levy and request a hearing you must do so in 30 days.

Explanation

Answer B – 30 days
In order to appeal the levy and request a hearing you must do so in 30 days.

2. What is the length of the statutory period for collection of debt owed to the IRS?

7 years

6 years

12 years

10 years

Answer D – 10 years
The Revenue Reconciliation Act of 1990 extended the Statute of Limitations for collection to ten years.

Explanation

Answer D – 10 years
The Revenue Reconciliation Act of 1990 extended the Statute of Limitations for collection to ten years.

3. The IRS can seize property it has a lien on by?

Taking the taxpayer to court

Having a judgment entered

Taking possession of the property

Having a levy issued by the sheriff’s department to seize and sell the assets

Answer C - Taking possession of the property
Because the IRS has a lien on a delinquent taxpayer’s property, it may take that property to satisfy taxes. The IRS can, administratively, take actions that any other creditor could take only after extensive court litigation.

Explanation

Answer C - Taking possession of the property
Because the IRS has a lien on a delinquent taxpayer’s property, it may take that property to satisfy taxes. The IRS can, administratively, take actions that any other creditor could take only after extensive court litigation.

4. The form that the IRS would send to an employer to levy an employee's wages is?

668-B

668-W

668-A

668-D

Answer B – 668-W
The 668-A Levy of Assets such as accounts receivable, notes receivable, and other assets.
668-B Seizure Process Documents
668-D Release of Levy/Release of Property from Levy

Explanation

Answer B – 668-W
The 668-A Levy of Assets such as accounts receivable, notes receivable, and other assets.
668-B Seizure Process Documents
668-D Release of Levy/Release of Property from Levy

5. A Levy of funds from an employer-sponsored retirement plan or IRA account will have what effect on the taxpayer?

Taxpayer will pay income tax and the 10% early distribution penalty on the amount levied

No tax due by taxpayer

Taxpayer will pay only the 10% penalty

Taxpayer will pay only the income tax on the amount levied

Answer D - Taxpayer will pay only the income tax on the amount levied
The IRS Restructuring and Reform Act of 1998 provided an exception from the 10% early withdrawal tax for amounts withdrawn from an employer-sponsored retirement plan or IRA that are subject to a levy by the IRA. Taxpayers must still pay the income tax.

Explanation

Answer D - Taxpayer will pay only the income tax on the amount levied
The IRS Restructuring and Reform Act of 1998 provided an exception from the 10% early withdrawal tax for amounts withdrawn from an employer-sponsored retirement plan or IRA that are subject to a levy by the IRA. Taxpayers must still pay the income tax.

6. The expenses included in the National Standards include?

Housing

Food

Health Care

Transportation

Answer B – Food
The National Standards are food, housekeeping supplies, apparel and services, personal care products and services and miscellaneous.
The National Standards, Out of Pocket Health Care, Local Standards and other Expenses are the 4 types of necessary expenses. Housing and Transportation are included in the Local Standards.

Explanation

Answer B – Food
The National Standards are food, housekeeping supplies, apparel and services, personal care products and services and miscellaneous.
The National Standards, Out of Pocket Health Care, Local Standards and other Expenses are the 4 types of necessary expenses. Housing and Transportation are included in the Local Standards.

Webinar Review: “don’t Have A Seizure” Protecting Your Clients From The IRS Collection Division

1. If a letter 1058 Final Notice of Intent to Levy is received how long do you have to appeal the intended levy?

2.

What first name or nickname would you like us to use?

2. What is the length of the statutory period for collection of debt owed to the IRS?

3. The IRS can seize property it has a lien on by?

4. The form that the IRS would send to an employer to levy an employee's wages is?

5. A Levy of funds from an employer-sponsored retirement plan or IRA account will have what effect on the taxpayer?

6. The expenses included in the National Standards include?