Halt IRS Tax Levy: Professional Tax Resolution and Relief Solutions
- Garnish Your Wages: The IRS can contact your employer and take a portion of your wages until your tax debt is paid off.
- Take Money in Your Bank or Financial Account: The IRS can levy funds in your bank, savings, or other financial accounts.
- Seize and Sell Your Property: The IRS can seize and sell property that you hold, such as your car, boat, or house.
- Take Your Future Tax Refunds: The IRS can apply any future tax refunds to your past due tax debt.
It's worth noting that the IRS usually levies only after three requirements are met:
- The IRS sent you a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing.
- This notice was sent at least 30 days before the levy.
- You neglected or refused to pay the tax.
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Where Does Internal Revenue Service (IRS) Authority To Levy Originate?
The Internal Revenue Code (IRC) 6331 authorizes an IRS tax levy to collect delinquent taxes.
Any property or right to property that belongs to the taxpayer can be seized if there is a federal tax lien. A tax levy can also lead to wage garnishment.
When you receive a tax levy, you need tax relief services.
IRS Notice Of Tax Levy Meaning
- Notice of Tax Due: The IRS sends a notice to the taxpayer stating the amount of tax owed, including any penalties and interest.
- Notice of Intent to Levy: The IRS sends a "Final Notice of Intent to Levy" warning the taxpayer about their unpaid taxes and the potential for a levy action.
- Notice of Right to a Hearing: The IRS provides the taxpayer with a "Notice of Right to a Hearing" to request a Collection Due Process (CDP) hearing within 30 days from the date of the notice.
- CDP Hearing: If the taxpayer requests a CDP hearing, the IRS reviews the case and considers any proposed collection alternatives or payment arrangements.
- Collection Alternatives: The IRS evaluates possible collection alternatives, such as installment agreements, offers in compromise, or currently not collectible status, if the taxpayer qualifies.
- Exhaustion of Administrative Remedies: If the taxpayer disagrees with the IRS's decision, they can further appeal to the Office of Appeals or pursue legal remedies through the court system.
- Final Notice of Intent to Levy: If the taxpayer does not respond or resolve the tax debt, the IRS sends a "Final Notice of Intent to Levy" specifying their intent to levy the taxpayer's assets or income.
It is important to note that the specific steps and timelines may vary based on individual circumstances and the type of tax liability involved. Consulting with a tax professional or referring to the IRS guidelines is advisable for accurate and up-to-date information. Understanding IRS statute of limitations is also crucial in determining the timeframe for filing an amended return or pursuing a refund. The statute of limitations generally limits the time in which the IRS can assess additional tax or the taxpayer can claim a refund. This emphasizes the importance of staying informed about tax laws and regulations.
Why Is There A Tax Levy On My Paycheck?
If you find that there’s a tax levy on your paycheck, it’s essential to act quickly. I can help you understand your rights, potentially negotiate with the IRS, and explore options like setting up a payment plan or making an offer in compromise.
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A levy is the IRS’s way of getting your money and your immediate attention. What they are saying is, “We have tried to communicate with you, but you have ignored us. If you own it, we can take it.” That includes bank accounts, autos, stocks, bonds, boats, pension checks, paychecks, and even Social Security checks! Imagine waking up one morning and finding your bank accounts have been cleaned out. If this amount did not cover what is owed, they will keep filing levies until they have collected every dollar you owe.
They know that levying your bank account will cause checks to bounce, alerting many people that you have tax problems. They do not care! Their sole objective is to collect the taxes owed. Period. As bad as a bank levy is, a worse problem is a wage levy (or garnishment). That is when most of your paycheck goes to the IRS or State, and they do not even leave you enough to pay the bills. If that doesn’t accomplish what they want, they’ll pull out all the stops. They can seize and sell your assets.
What is a Tax Levy?
If you are one of the millions of American taxpayers who find themselves in the IRS’s crosshairs, an IRS levy is stressful and disruptive at best, and financially catastrophic at worst.
The IRS is in the business of collecting money for the Federal Government and often finds itself in the position of needing to compel taxpayers to meet their tax obligations.
Levies are one of the tools they use for that compulsion. The IRS prefers seizing liquid assets such as bank accounts, wages (through garnishment), and social security benefits.
However, they will also seize and liquidate assets such as retirement accounts and cash value life insurance policies. Additionally, the IRS has the authority to garnish wages and place liens on property to satisfy the outstanding tax debt. In some cases, individuals may be able to seek innocent spouse relief if they can prove that they were unaware of their spouse’s tax discrepancies. This relief may provide some protection for innocent spouses against the aggressive collection tactics of the IRS.
The IRS will even seize and liquidate vehicles and real estate if the assets hold sufficient equity to justify the cost of the liquidation process.
Frequently Asked Questions
