Glossary

Tax Levy Release

A tax levy release is a formal process that stops the IRS from seizing a taxpayer’s assets to collect unpaid taxes. When the IRS issues a levy, they may seize property such as bank accounts, wages, or even real estate. A levy release provides temporary relief and allows the taxpayer to resolve their debt without losing assets.

To obtain a tax levy release, taxpayers must:

Pay the full tax debt.
Enter into an Installment Agreement or submit an Offer in Compromise.
Prove that the levy is causing financial hardship.

A levy release does not eliminate the tax debt but stops the immediate seizure of assets, giving the taxpayer time to negotiate a payment plan or other resolution with the IRS.

Recommendation

Child and Dependent Care Credit

The Child and Dependent Care Credit allows taxpayers to claim a credit for a portion of childcare expenses for children under 13 or dependents who cannot care for themselves.

CP18 Notice

IRS CP18 notifies taxpayers that deductions or credits claimed on their return appear incorrect, and the IRS will review or adjust the return accordingly.

Letter 86C: Refusal to Process Offer in Compromise

IRS Letter 86C notifies taxpayers that the IRS has refused to process their offer in compromise, explaining the reasons for the refusal and next steps.

CP161A Notice: Annual Reminder of Business Tax Balance Due

The IRS CP161A Notice reminds businesses of their outstanding tax balance and provides details on payment options to resolve the debt.

Tax Levy Release

A tax levy release halts the IRS from seizing assets like wages or bank accounts to collect unpaid tax debt, providing temporary relief to the taxpayer.

Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a tax credit designed to help low- to moderate-income taxpayers by reducing their tax liability.

Letter 2270C: Installment Agreement Request Rejected

IRS Letter 2270C notifies taxpayers that their request for an installment agreement has been rejected and provides reasons for the rejection along with appeal options.

CP297 Notice: Final Notice of Intent to Levy and Notice of Your Right to a Hearing

The IRS CP297 Notice is a final warning that the IRS intends to levy assets due to unpaid taxes, with instructions on how to request a hearing to dispute the

Letter 2604C: Rejection of Offer in Compromise

IRS Letter 2604C notifies taxpayers that their offer in compromise has been rejected and provides the reasons and steps to appeal or submit a new offer.

CP44 Notice: Refund Hold Due to Delinquent Taxes

IRS CP44 Notice notifies taxpayers that their refund is on hold due to unpaid taxes and outlines steps to resolve the debt and release the refund.