IRS Levy

[roberth5]

What is the name of your state?Michigan

I received a Levy from the IRS for $99,975 as a result of a company we hired to install a alarm system for us.

We engaged an alarm company (MIS) to install a new alarm and video system at a cost of $34,000.

The Alarm company (MIS) installed most of the new equipment we purchased from them, however, they left the job substantially unfinished and most of it not working, and left us with no warranty on the failed components. They (MIS) apparently had financial difficulties and sold out to another company. They apparently had a huge IRS liability they could not pay in the amount of $99,975.00.

It appears that they turned over their receivables to the IRS to collect, including the entire balance remaining for their abandoned and unfinished job they were doing for us. We already paid this alarm company (MIS) $21,000, leaving a balance of $13,000 provided they had completed the work and warranted same. Hence the IRS levy onto us!

We had to hire another company (ASP) to complete the work at a cost of ±$10,100.00 in addition to the wire we pulled and cameras we installed, and programming we figured out (in house) to get the system operational, as well as the replacement equipment we had to purchase to replace the failed items.

If the IRS claims we owe this entire bill for this system that (MIS) did not finished, maintain, or warrantee, are we over a barrel?

[Snipes5]

The IRS collects taxes, not receivables.

Since there is a large amount of money at stake, take your information to an Enrolled Agent who is experienced in this area.

Normally the IRS does try to work with you, and does not often go straight to Levy, so it sounds like there is a good part of this story left out, otherwise you are not understanding the actual issue.

The scope of this is beyond what can be sorted out on a message board.

Sorry.

Snipes

[roberth5]

That is the situation; there is no more to it, since the MIS company disappeared, the next time we heard anything about MIS was via the IRS Levy Notice.

I happen to have had previous knowledge of the IRS agent who processed this (form 668-A) levy notice. A personal acquaintance of mine had a similar IRS issue (payroll taxes not paid) and this particular IRS agent took his receivables and did the same thing to his former customers (levied them for the receivable amount). This levy to collect receivables process seems to not give the customer (debtor) any room to object or question a bill.

When the IRS becomes your collection agent, your receivables generally get collected. I did contact the particular IRS Agent and advised him/her of the unfinished nature of the job and stated that we would appreciate some consideration or at the very least a day in court, the Agent advise that if we chose to ignore the levy, we will have a day in court.

Again, this levy was solely for the benefit of the MIS Alarm Company, the IRS Levy is strictly being used as a collection service to clean up the remaining MIS receivables from its former customers (like us) who were left hanging. There is no more or less to it, that is it completely.

So what (or where) is an "Enrolled Member"?

[Snipes5]

Enrolled Agent.

That's someone who is certified by the IRS to represent you in a tax proceeding. Do not attempt this on your own. You need representation.

You can find one by going to [url]www.naea.org[/url] and searching in your state listing.

Snipes