A family-owned landscaping company in Miami reached out to us in distress after the IRS issued a bank levy on their operating account. For three years, the business had fallen behind on both payroll and income tax filings, which led to mounting penalties and interest. When the levy hit, the company’s incoming deposits were frozen, and their cash flow came to a halt, which made it impossible for them to pay employees or vendors. Without immediate action, they risked closing their doors for good.
The Problem
When the IRS issued a bank levy that drained the company’s incoming deposits and blocked payroll, their ability to maintain daily operations came to a standstill. At the same time, their backlog of unfiled tax returns exposed them to additional penalties and enforcement actions. Realizing that the situation had spiraled out of control and was beyond what they could handle on their own, the owners decided to get professional help to stop the levy and bring their business back into compliance before it was too late.
Our Solution
At Florida Tax Solvers, the team of Attorney Steven N. Klitzner understands how devastating an IRS levy can be for a small business. In this case, time was critical. The team acted quickly to protect the company’s remaining funds, communicate directly with the IRS, and create a strategy that addressed both the immediate crisis and the long-term compliance issues. The goal was not only to stop the levy but also to help the client regain control of their business and prevent future problems.
Requested immediate levy release.
We contacted the IRS Collections Unit and demonstrated that the levy created an immediate economic hardship. Within days, the IRS lifted the levy, allowing the company to access its funds again. This quick intervention prevented further disruptions to payroll and kept the business from shutting down.
Brought returns up to date.
We helped the client gather records, reconstruct income and payroll data, and prepare all outstanding tax returns. This halted further non-filer penalties and stopped additional enforcement actions. Getting their filings current also allowed the IRS to fully evaluate the case and opened the door to meaningful resolution options.
Negotiated a manageable resolution.
After evaluating the company’s financial capacity, we negotiated a structured payment plan that fit their budget and ensured business continuity. This agreement gave the owners predictable monthly obligations without overwhelming their already strained cash flow.
Secured penalty abatement and provided compliance planning.
We presented a reasonable cause argument to the IRS and secured penalty relief where applicable. Finally, we established a payroll deposit and filing schedule to prevent future issues. These steps gave the client a clean slate moving forward and reduced the risk of facing similar IRS problems again.
The Results
Within the same week, the levy was lifted, and normal banking activity resumed. The business was able to meet payroll on time, vendors were paid, and day-to-day operations stabilized. With all missing returns filed and a sustainable payment arrangement in place, the company regained good standing with the IRS, and, more importantly, regained control over its finances.
This case shows us how quickly a tax problem can escalate when returns go unfiled and a levy is issued. It has also demonstrated how effective immediate and informed intervention can be. With the right guidance from a tax professional, even businesses facing severe IRS enforcement actions can resolve the crisis, become stable again, and more importantly, move forward with peace of mind.
