Facing an IRS Intent to Levy? 3 Steps You Have to Follow Immediately
Out of all the letters you can receive from the Internal Revenue Service (IRS) one of the most important is the intent to levy. Finding this letter addressed to you means something has gone very wrong with your taxes. You have gone to long without paying a debt to the IRS, and not communicated a plan or solution to them.
If the IRS follows through with the levy, you can lose your wages, bank accounts, properties, car, commissions, social security benefits and more. There are a few important things to know before you begin dealing with the intent to levy.
What the IRS must tell you:
First of all, the IRS is required by congress to provide you with written notice of the intent to levy and your rights to appeal the levy going forward. The levy must be delivered personally, left at your home, or your last known address 30 days prior to the IRS taking action. The notice must include an explanation of the reason for the levy, the process, and your options.
These are a few steps to take when you have received an IRS levy:
- Do not ignore this notice
If you take no action, it’s only a matter of time before the IRS begins its enforced collection process. Though we already named some of the assets that can be seized, remember that the levy applies to truly anything the IRS thinks it can use to satisfy the tax balance.
- Explore your options
There are two major ways to deal with an IRS Intent to Levy.
- Installment agreement
With this system, you agree to make monthly payments to the IRS until the debt is paid. You will be considered in good standing with the IRS as long as you continue to make the payments. If you enter into this agreement, it will stop penalties from being charged, but you will be responsible for interest on the debt.
- Offer in compromise
This option is available to those the IRS deems to be extremely financially burdened. The filing is complicated, but it allows the taxpayer to compromise their tax debt and settle for less than the amount owed. Note that the IRS has strict qualifications for this type of filing.
- Seek legal aid
The IRS isn’t perfect, and you may believe that you have been wrongly presented with an intent to levy. If this is the case, call the number provided on the tax levy right away and get more information. Call even if you have begun a payment plan or offer in compromise to verify that your paperwork reflects your actions on the other end. Legal aid can give you a better sense of the repossession process in your home state as well.
Communicate your plan to the IRS
Many people lose their money and assets because they don’t realize they can communicate with IRS and work out a payment plan. Be aware that phone calls don’t change official standings with the IRS, and you will need confirmation of a more official nature that you are in good standing with a payment plan. Take advantage of the fact that the IRS has a responsibility to make all your options clear to you, and move towards a solution.