The tax reform bill that went into effect in December 2017 was a relatively complicated piece of legislation. Although its provisions for high net worth individuals were some of the most notable, its terms will likely affect every taxpayer, including those who have faced a wrongful levy. If the IRS seized property that was rightfully yours to cover someone else’s debts, a tax attorney can help you file an administrative claim and bring a suit for wrongful levy. In the meantime, here is what you should know about how the tax reform bill modified the claims process.

If the IRS Sold the Property

If the IRS levied property that belonged to you and sold it to satisfy another party's tax debt, you now have additional time to bring a suit for wrongful levy. The original deadline was nine months, but under the new tax bill, claimants have two years from the date on which the levies were made, as long as they were made after December 22, 2017. This change also applies to levies made before that date if the original nine-month deadline has not yet expired. 

If the IRS Has Not Sold the Property 

The new laws do not affect the provisions applied to property the IRS has not yet sold. So if the IRS levied property that is rightfully yours, but has not yet taken steps to liquidate it, there is no time limit in which you must file an administrative claim. In such a scenario, though, a tax attorney will likely advise you to begin the legal proceedings immediately. The sooner you bring a suit, the sooner you can regain ownership of the property. 

If you want to bring a civil action following a wrongful levy or seizure, turn to Allen N. Davey LLC, Attorney at Law, CPA. Based in Honolulu, this tax attorney has over 30 years of experience representing clients before the IRS and in US tax court. He helps individuals and businesses resolve tax liabilities in the most favorable way possible. Learn more about his tax resolution services online. Call (808) 545-2222 to schedule a free initial consultation with this reliable tax attorney today.