Letter 3973, Wrongful Levy Claim Rejection Letter - Untimely Claim, tells you the IRS rejected your administrative claim for return of wrongfully levied property because it believes you filed it too late. A wrongful levy claim is filed by someone who is not the taxpayer, such as a co-owner, spouse, business partner, or creditor, whose own property was taken to pay someone else's tax.
The Deadline
Under IRC Section 6343(b), the IRS can return wrongfully levied property only if the claim is made within two years from the date of the levy. Check that date carefully. The two-year period was extended from nine months by legislation in 2017, and older guidance still floating around online uses the old rule.
Your Remaining Options
A wrongful levy suit in federal district court under IRC Section 7426 has its own deadline under IRC Section 6532(c): generally two years from the levy, extended in some cases when a timely administrative claim was filed. If the IRS is right that the claim was late, the suit deadline may also be close or past. Calculate it immediately.
If you believe the claim was timely, respond with proof of the filing date and the levy date. Certified mail receipts are your best evidence.
If you received Letter 3973, call us at (813) 229-7100. The court deadline may be close.