Family-Owned Florida Business Clears Years of Back Taxes and Gets a Levy Lifted

A small family-run company in Florida came to us owing the IRS on several years of corporate income tax. By the time they called, the account had already been handed to a revenue officer, a federal tax lien was on file, and the IRS had started pulling money through a levy. Within a few weeks we got the levy released and put a monthly payment plan in place that the business could actually afford. Here is how it went.

How it started

The company files a Form 1120, which is the corporate income tax return that a corporation submits each year. Over time it had fallen behind, and the unpaid balance had grown to just under $19,000 spread across four tax years. That is a modest number next to some cases we handle, but for a small business it was more than enough to cause real trouble once enforcement started.

By the time the owner reached out, the matter had already escalated. The account had been assigned to a revenue officer, who is a local IRS employee with the authority to file liens, issue levies, and demand financial records directly. When a case reaches a revenue officer, it usually means the automated notices have run their course and a person is now actively working to collect.

The pressure from the IRS

Two things made this case urgent. First, the IRS had already filed a Notice of Federal Tax Lien. A lien is a public claim against the business and its assets. It does not take money on its own, but it damages credit and can make it hard to borrow, sell, or even keep vendor relationships steady.

Second, and more pressing, the IRS had issued a levy. A levy is the step where the IRS actually takes funds, often straight out of a bank account or from money owed to the business. For a small company, a levy can drain the cash it needs to make payroll or pay suppliers, and it tends to land with no warning. The owner was understandably anxious. Money was at risk right then, not at some future deadline.

What we did

The first job was to stop the bleeding. We filed a power of attorney so we could speak to the IRS on the company’s behalf, and the IRS accepted it quickly. That let us get the revenue officer on the phone and request a short hold on enforcement while we built a plan.

To deal with the levy directly, we filed an appeal through the Collection Appeals Program, often called CAP. This is a formal way to challenge a collection action like a levy and ask the IRS to reconsider it. We used that appeal to push for the levy to be released so the business could get back to operating normally.

At the same time, we pulled the company’s account transcripts to confirm exactly what was owed and for which years, and we made sure the business was current on its required filings and deposits. This part matters more than people expect. The IRS will not approve any payment plan while a taxpayer is behind on current obligations, so getting compliant is the price of admission for a resolution.

With that in place, we negotiated an installment agreement. An installment agreement is a formal arrangement to pay a past balance over time in fixed monthly amounts. We worked it through to a Form 433-D, which is the document the IRS issues once it has agreed to the terms. In other words, the 433-D showing up is the sign that the negotiation is over and the plan is set.

The outcome

The revenue officer released the levy and approved the installment agreement. The company agreed to pay $2,000 a month, with the first payment due in the middle of October and the same amount on the 15th of each month after that. At that pace the balance clears in well under a year, a short and steady path rather than a plan that drags on indefinitely.

Just as important, the immediate threat was gone. The money the levy had put at risk was freed up, and the owner could plan around a single predictable payment instead of bracing for the next surprise from the IRS.

Why it matters

Most people who call us are not in trouble because they ignored the IRS. They got busy, fell behind, and then felt stuck once the notices turned into liens and levies. The useful lesson here is that enforcement can usually be slowed or stopped once a representative steps in, gets the account current, and proposes a realistic plan. A levy is frightening, but it is not the end of the road.

If the IRS or a state agency has filed a lien, sent a levy, or assigned your account to a revenue officer, the worst move is to wait and hope it quiets down. The earlier someone gets involved, the more options are still on the table.

Every case is different. Outcomes depend on a taxpayer’s specific financial situation, and PFGTAX does not guarantee any particular result or reduction in tax debt.