To ensure that you pay your penalties and tax debt, the IRS applies the levy. Your income and your properties can be levied. It’s a drastic measure that can financially cripple you, so if you get a Levy Notice, it is best to act immediately.
Get the assistance of a tax lawyer as a first step to stop a levy. When you consult with the lawyer, you will need to reveal your IRS issues and any payment details or notices received from the IRS. Taxpayers typically get a Demand for Payment statement from the IRS prior to being served the Levy Notice. Why this Demand for Payment wasn’t settled will have to be explained. There are many valid reasons for this, like IRS processing mistakes, financial hardship, or bankruptcy, but you have to have proofly that effectively shows why the taxes or penalties have been unpaid.
Ignoring an IRS Levy Notice is the error most citizens make. You should consult a tax attorney who can counsel you and help you request a Collection Due Process hearing at the IRS Office of Appeals in your area. If you have settled your taxes and were levied due to an IRS error, you can show evidence that the IRS made a mistake in the hearing.
The IRS can’t puruse a levy for various reasons like filing for bankruptcy and immediate settlement following the Levy Notice. The IRS also can’t collect taxes assessed over ten years ago due to the statute of limitations. If the IRS levy was mailed after the expiration of the tax collection period, you don’t need to pay your taxes.
The Collection Due Process hearing is also an opportunity to work out an installment option for settling unpaid taxes. If you do indeed owe the IRS money but aren’t able to pay the full amount, you will have to work out a payment plan with the Office of Appeals. While not the ideal option, the installment plan will be less of a financial problem than getting your wages garnished or your bank account levied.
An IRS levy will continue until it is officially released, your debt is settled, or you meet the statute of limitations and the IRS can no longer get those taxes. The IRS will reimburse your bank charges if your bank account was erroneously levied because of an IRS mistake. You should file for reimbursement within thirty days or you will not qualify.
Your IRS problems will just increase if you ignore a Levy Notice. To safeguard your assets, it’s better to get fast assistance.
