Usually, the IRS has a 10 year statute of limitations on collection. Retain a tax lawyer right away to review your matter.
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The previous Attorney is correct that, normally, IRS has 10 years to collect the debt from the date the tax is assessed. But, let me go further. Your question is actually two questions as you mention both a bank levy and a levy against wages. And, I am writing this so that others who may have the same issue can understand. A levy against wages is also known as a garnishment. It is a continuing seizure of your income so long as you work at that particular job and still owe money to the IRS. On the other hand, a levy on a bank account is, normally, a one time notice for the bank to turn over to the IRS what it is holding in the account at that specific moment in time and does not continue beyond that point. Finally, if you still owe money to the IRS and the statute of limitations on collection has not expired (sometimes the 10 year statute is extended ....such as bankruptcy, offers in compromises and collection due process hearings), then the IRS could do another bank levy to collect. The easiest manner to determine the status of your 1999 debt, and to do so quietly, is to engage a tax practitioner to download a transcript through E-Services.
Finally, you should note that even though your settlement check is from an automobile accident, some or part of it may be taxable to federal and/or state governments. You should consult with a tax advisor on that issue.
Marty Davidoff, firstname.lastname@example.org, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
Your bank received an asset levy in 1999. That was effective only for funds that were in the account at that time. Your personal liability for the tax probably has expired due to the statute of limitations on collection of tax. The statute of limitations expires 10 years from assessment generally. It can be extented due to a number of actions including but not limited to bankruptcy, an extension agreement under an installment agreement and an offer in compromise. These are the most common. There is a good probability that you have no liability at this time.
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