Navigating the complexities of tax obligations can be challenging for any Maryland business owner. One notice from the IRS that can be cause for concern is Letter 73. It’s a notification of an issue the IRS takes very seriously: unpaid federal employment taxes. This letter is not just a reminder but a warning of impending enforcement actions, specifically a levy intended to recover the unpaid taxes.
Let’s dive deeper into LT73 to see what it means for your business and the critical steps you need to take in response.
What Does LT73 Mean?
If you receive an LT73, it means the IRS hasn’t received payment of your federal employment tax. It’s also a notice of levy to collect these unpaid taxes. The levy takes effect on the day the notice arrives, and it puts a frozen escrow on your bank account for the amount due. However, you have 21 days to negotiate before the bank sends the money to the IRS.
What to Do If You Receive LT73
Having a levy from the IRS can have serious repercussions for your business. If you want the escrow to be released within 21 days, you need to ensure you’re current with your tax filings, disclose your financial situation to the IRS, and arrange an agreement with the IRS.
To disclose your income and assets, you will probably have to complete Form 433-A or Form 433F. We typically recommend getting a tax attorney’s assistance to fill out these forms, as they can be highly complex.
Releasing the levy is only the first step—you still have to find a way to pay off the outstanding tax debt. Coming up with a plan to pay off the debt is also tricky, but it must be done if you want to avoid any negative consequences for your business. A tax lawyer can devise this plan for you.
How a Tax Attorney Can Help
If you learn the IRS wants to impose a levy on you, you should consider it a serious matter. To know how best to respond in this situation, consider contacting Maryland tax attorney Gabaie & Associates, LLC. We have offices in Baltimore, Columbia, Frederick, and Rockville, and we’re ready to assist you with your business tax problems. Call our firm today at (410) 358-1500 or send us a message, and we’ll get back to you to schedule a free consultation.
