Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.
The levy can be against any account over which you have signature power. It will not be stopped until the receive and process in a payment arrangement of Offer in Compromise (OIC). To get the OIC forms you can go direct to the state tax department web site and download the forms and instructions. You will need to provide a great deal of information. After all, you are trying to show them why it is in their interest to accept this deal. They are not concerned about your best interest.
They cannot levy your wifes account unless you have signature power there also. I would recommend moving it and not including yourself as a signer until this is resolved. That will protect her.
If you require additional assistance please feel free to ask.
The process does not usually take as long as they told you. Usually it takes about 2-3 months. Since you will need to provide a lot of information in completing the form you should consider starting it yourself. That way you will know certain areas and be able to have the questions you have for the remainder. If you are comfortable with it all you can submit it yourself. I would not recommend that. A better choice is to get it going yourself and take it to a professional (CPA or tax attorney) for review, completion, and polishing prior to submission. You will still be the source of the information but the professional can represent you in dealing with the state. Additionally, the less the professional needs to do the lower the fee you will be charged.
Yes, they can levy your business account. At this point they are looking at it as an extension of you and a potential place to hide money from them. Once the OIC is submitted the levy actions are stopped. However, if the OIC or payment plan is rejected they levy process can start again immediately. If you have other assets besides your bank accounts they can also be either seized or liened. If you home is only in your name it can be taken and auctioned but if it is held jointly with your spouse they can only lien your interest in it. Your spouse has no obligation to them and therefore they cannot take what is hers.
OK.. this is very good information.. I will proceed with the OIC, then get someone to help me clean it up before I submit it.. I have two more questions, then, I will move on.
First, do they stop the levy action when they receive the request for OIC or after some resolution on it? Second, in your experience, since this letter said I should send the full amount by Dec 28th... how soon do they usually do the first levy..and.. when they do a levy, how soon is the second, etc.. ??
You are able to come back to Just Answer at any time and one of us will be able to assist you. If you wish to specifically request me just start your question with my name. Another option is to return to this question in the my questions section on your screen.
Thank you for letting me assist you. I know this can be a trying matter.