from the Equine Tax Group

Newtown, PA — Larry Rosenblum of the Equine Tax Group reports that the IRS has issued a new round of levies on horsepersons recently that have a levy date of Sept. 12, 2012.

Rosenblum stated, “I received four calls last week regarding levies issued for that date. They are sent to the horsemen’s bookkeeper at tracks you race at.

“The IRS knows where you race because they keep a history of where you have received 1099s from,” Rosenblum continued. “The important thing to note is that IRS does not just levy without notice. There are at least three friendly notices issued before a “notice of intent to levy is issued.” This is a warning that the person had better act quickly or with a few weeks checks from the horsemen’s bookkeeper are going to be short.

“This is the point at which the taxpayer must take action. IRS allows taxpayers to appeal a levy for a variety of reasons. You must file the formal appeal on form 12153 and mail it to the exact address shown on the levy notice or the IRS will march forward and take your money. An appeal allows the taxpayer to show his or her income and expenses on a financial statement form 433 and requires quite a bit of backup data. This step is best handled by an accountant or tax attorney experienced in dealing with the IRS.

“Happily the end result of many such appeals is that the taxpayer ends up with a reasonable payment plan or is declared uncollectible and the IRS holds off and re-evaluates the person In anywhere from 12 to 24 months.”

For further information, contact the Equine Tax Group at 888.338.2999.