Notice if Levy

[softy515]

What is the name of your state (only U.S. law)? PA

My father passed away in Sep. We are fully aware that he has not always filed his tax returns but the most recent ones he filed, he actually got refunds.

Today we got a notice of levy in the mail. It came to him, not to his estate, so apparently the paper work that I sent in to let them know he passed and to let them talk to me about what needs done, has not gone through yet.

What is confusing, it came to him, but it says that the taxpayer who actually owes the money is someone else and it lists this other persons name and address.

It gives the contact person to talk to with the IRS so will call Monday. Just hoping to get some insight on what the heck this is all about!!! This is a HUGE sum of money that is owed. HUGE!

Thanks in advance.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

My father passed away in Sep. We are fully aware that he has not always filed his tax returns but the most recent ones he filed, he actually got refunds.

Today we got a notice of levy in the mail. It came to him, not to his estate, so apparently the paper work that I sent in to let them know he passed and to let them talk to me about what needs done, has not gone through yet.

What is confusing, it came to him, but it says that the taxpayer who actually owes the money is someone else and it lists this other persons name and address.

It gives the contact person to talk to with the IRS so will call Monday. Just hoping to get some insight on what the heck this is all about!!! This is a HUGE sum of money that is owed. HUGE!

Thanks in advance.

Someone is going to have to be able to see that letter in order to give you any accurate advice. You need to take the letter to a local tax professional and have them help you understand what its all about. They may advise you to contact a tax attorney if the amount of money involved is huge.

You SHOULD NOT call the IRS until someone professional has looked at that letter. Whose social security number is on the letter?

 

[davew128]

Are you the executor or appointed personal representative of the estate?

 

[softy515]

Yes, I am one of two who were appointed to execute the estate.

The social security number on it is not my Dad's.

My sister (also a representative of the estate) showed it to her tax guy and he didn't offer much help. Basically said to call the IRS employee listed to contact.

 

[LdiJ]

Yes, I am one of two who were appointed to execute the estate.

The social security number on it is not my Dad's.

My sister (also a representative of the estate) showed it to her tax guy and he didn't offer much help. Basically said to call the IRS employee listed to contact.

Then get a consult with another tax professional...or maybe even two or three more tax professionals. If they all agree that you should simply call the IRS (and agree on what you should say to the IRS) then it may be safe for you to contact them. HOWEVER....I sincerely doubt that if the amount involved is a huge as you say.

I don't know what kind of estate your father has, but there are circumstances where he could be held responsible for taxes that technically were the responsibility of someone else, or he could have been self employed and operating under an EIN number and owes trust fund taxes under that number.

You should not be contacting the IRS until you have a reasonable understanding of what is going on, and even then, it might be better for a professional to be contacting the IRS on your behalf.

You definitely don't want to be distributing the estate until you have a decent idea of what is going on.

 

[softy515]

We are not doing anything with estate funds, minus upkeep of properties. We are no where near closing this estate. It is a mess.

I see on this paper this statement:

The Internal Revenue Code provides that there is a lien for the amount that is owed. Although we have given the notice and demand required by the Code, the amount owed hasn't been paid. this levy requires you to turn over to us this person's property and rights to property (such as money, credits and bank deposits) that you have or which you are already obligated to pay this person.

There is this too:

This is not a bill for taxes you owe. This is a notice of levy we are using to collect money owed by the taxpayer named above.

Now my Dad kept all papers and I see nothing with this man's name on it. I see no indication of any other businesses outside his job and rental properties . As you can imagine, we are VERY confused.

 

[davew128]

Now I understand. This isn't a bill at all. Someone associated with your father has a levy on any and all payments to that person because of a tax debt. If you're not making payments to that person from your father's estate, you don't need to do anything. The estate doesn't owe any money.

That your tax guy couldn't figure that out in 5 seconds should be reason to get a new tax guy.

 

[softy515]

That would be my sisters tax guy and I agree, useless.

You don't think we should even call the IRS employee?

 

[davew128]

You don't think we should even call the IRS employee?

Was my last answer explaining the letter unclear to you?

 

[LdiJ]

That would be my sisters tax guy and I agree, useless.

You don't think we should even call the IRS employee?

No, you should NOT call the IRS.

Let me try to explain this more fully....

The guy listed on the paperwork has been audited by the IRS an obviously owes them a large amount of money.

Your father's information was in the guy's records as a customer or client. Your father may have hired him to do repairs on properties, or hired him as a sales representative, or hired him for some other purpose, probably fairly recently. Therefore the IRS has reason to believe that your father might owe this guy some money...that your father has maybe been billed for something that hasn't been paid yet.

Therefore the IRS is sending you a notice saying that IF your father owes this guy any money, then instead of sending that money to the guy, you need to send that money to the IRS instead. In other words, the IRS is garnishing this guy's potential accounts receivables.

Therefore, the only reason that you should have any contact at all with the IRS, is if your father actually does owe this guy any money. He may or may not, depending on where you are in unraveling your father's estate. However if he does, then the money needs to be paid to the IRS instead of the "guy".

 

[softy515]

Ok... thank you for your explanations, everyone.