Resolutions To A Tax Levy

While the tax lien is a claim against a taxpayer’s property, a levy is the actual seizure of that property. The levy is one of the final steps in the enforced collection process and is used only when a taxpayer has made no attempt to resolve an existing tax liability. Once a Final Notice of Intent to Levy has been issued together with an official notice informing the taxpayer of their right to a formal hearing, the property identified by the levy can be confiscated without further notification.

A levy can be devastating when your bank account funds or wages are seized. However, with proper guidance and attention a Levy can be avoided before it is implemented.

The best way to handle a Tax Levy is to deal with it immediatly after the IRS sends a notice of an Intent to Levy. By law, they cannot levy your property without notifying you first.

According to the IRS, “A levy is a legal seizure of your property to satisfy a tax debt.” Legally, if you do not pay your taxes, the IRS has the right to seize property you own. This may include funds in your bank account, IRA, vehicles, wages (wage garnishment), or even your home.

As with most legal actions, there is due process in the implementation of a levy. First, the IRS must determine there is an unpaid tax debt owed by the taxpayer. Once this is established, they will send a Notice and Demand for Payment. If a response with a payment arrangement is not made, a Final Notice of Intent to Levy and Notice of Your Right to a Hearing will be sent. 30 after sending this notice, your property will be seized. If the IRS chooses to mail the notice, it will be sent to the last known address on file. If you have moved recently, and have not filed a tax return in several years, unfortunately it is possible that you will not receive the notice.

Once the levy is in place, it is much harder to get removed. This is why it is better to deal with it before it becomes effective. Generally, a levy will not be released until:

• The tax debt is paid in full, or
• The legal statute of limitations for collecting the funds has expired.

That said, there are ways to get a levy removed or reduced, but they can be difficult. The level of difficulty can vary depending on how much is owed. Despite this, removing a levy before is paid in full is possible. It usually involves some form of Tax Settlement or Tax payment, whether it be an Installment Agreement or an Offer In Compromise.

If your assets are being levied or you’ve received a notice of intent to levy, You should immediatly speak with a professional who has experience in dealing with agressive IRS actions. The licensed experts at Professional Tax Resolution have handled many levy cases and our clients are always left in a manageable and better financial situation after we deal with their levy.

Click the “Learn More Link” or Call (877) 889-6527 to have one of our CPAs provide a free consultation regarding the removal or prevention of a tax levy.