How To Stop An IRS Tax Levy
The dreaded letter has arrived in the mail. Or several of them are piling up, and you know it’s a levy from the bank. You may lose your house or the money in your bank account. Time to act, and to prevent the bank from seizing your property.
Failing to pay your taxes tends to have consequences. Usually, you have to pay interest and penalties on missed payments. When you lose your property, it tends to be the last resort on the IRS’s part, when they don’t want to send you to jail. The IRS wants to get paid and would rather not put people in jail.
An IRS tax levy is never fun. It means that, in your case of failing to pay the amount owed on your federal tax return, the IRS is seizing your property or assets to pay the debt. Wage garnishment can ensue, as can losing your tax refund, the money in your bank account, or accounts receivable for small businesses.
The Levy And Notice
Before the IRS seizes your property, they will often place a lien on it and give you a fair warning. The lien is a claim on your assets or property which will be used to pay off the debt. Usually, you get several letters and notices of the intent to levy, which is a fair warning.
There is one simple solution to avoiding a levy or a lien: pay off your tax debt if you can. Or set up a payment plan so that the installment agreement can buy you some time. If neither works, you still have options.
How To Handle The IRS Tax Levy Letter
You need to act as soon as you receive the notice. Time becomes the essence. Once you get the final notice of intent, you have a narrow window of saving your assets.
If you have a solid case, one option is to request a Collection Due Process Hearing from the Collection Appeals Program. Then you have a smaller time window to make your case and argue to save your property. This is where having a professional will come in handy. They can help assemble your paperwork.
You can ask to arrange an offer in compromise or an installment plan with monthly payments. The offer in compromise means that you and the IRS come to an agreement about paying a smaller amount of tax debt. You have to meet certain qualifications. The payment plan will give you some breathing room, whether or not you qualify.
Let Success Tax Relief Help Pay Off Your Tax Debt
At Success Tax Relief, our tax professionals know exactly how to help you handle levies, financial hardship, and other penalties that the government may enlist. We want to ensure that you never worry about the IRS or other payments due during the year.
Contact us today to get started. We’ll help reduce your tax liability and improve your financial situation. No bank levy is too difficult for us, and neither is one from the IRS.