The Danger Of Tax Levies
- June 4, 2019
- Posted by: asal
- Category: Tax Resolution
The IRS has several ways it can collect its money when you owe back taxes. If you don’t settle back taxes when they’re due, the IRS can employ several collections actions. One of those collections steps is a tax levy. Tax levies can put your assets at risk. To remove a tax levy, you need to work with the IRS to pay your back taxes. When you’re at risk for a tax levy, contact a tax attorney at your earliest convenience. A tax resolution professional can help you come up with a plan to pay back taxes and release the levy. Tax levies are dangerous if you owe back taxes. Read on to learn how tax levies affect you and how you can remove a tax levy.
What is a tax levy?
A tax levy occurs when the IRS seizes property to pay taxes you owe. Tax levies can include such penalties as a wage garnishment or seizure of assets and bank accounts. The IRS will typically employ a tax levy after they put a tax lien on you. A tax lien is a claim the government makes on your property when you owe back taxes. With a tax lien, the government can put a claim on your real estate and other assets. A tax levy is when the IRS acts on that claim.
How will a tax levy affect me?
There are a few things that might happen when the IRS places a tax levy on you.
Your paycheck decreases: Wage garnishment is a common tax levy tactic the IRS uses. It means your employer must give the IRS a portion of your earnings from every paycheck.
Unable to access money in bank accounts: One of the IRS’ prime targets for recouping back taxes is targeting your bank account. The IRS will place a 21-day hold on your bank account to attempt to collect back taxes. If you don’t pay up, some or all of your money will go to the IRS as back taxes settlement.
You could lose your house: While taking your home is usually a last resort for the IRS, it can happen.
Are there any assets the IRS can’t take?
There are some items the IRS cannot seize. For example, the IRS claims it cannot take unemployment benefits, certain annuity and pension benefits, and disability payments. The IRS also cannot claim workers’ compensation, public assistance payments, or child support. Also, the IRS also can’t take undelivered mail, items necessary for school or work, and some furniture.
Can I remove a tax lien or tax levy?
There are ways to remove a tax lien or tax levy. However, before attempting to work with the IRS, you should consult a tax attorney. A tax relief specialist will have much experience working with the IRS. Your chances of a favorable outcome with the IRS are better if you work with a tax relief specialist.
Pay your tax bill
One way to have the IRS release a tax levy is to pay back taxes. In most cases, paying back taxes is the only way to stop a tax lien or tax levy. Also, cooperate with the IRs. If they ask for something, give it to them. When the IRS calls you, call them back. We know it can be scary dealing with the IRS. It can also be intimidating when dealing with the IRS. For that reason, consult a tax resolution expert to help.
Negotiate an IRS payment plan
Your back tax total will continue to increase as long as you owe back taxes. Interest and penalty charges will continue to add up on back taxes. Allowing the IRS to take three consecutive payments from your bank account might convince them to withdraw the lien. However, you will still have to pay your back tax debt. It’s not necessary to hire a tax relief expert to help get you on a payment plan. However, your chances of securing a more affordable payment plan are better when working with a tax attorney.
Request an Offer in Compromise
An Offer in Compromise allows you to settle your back taxes for less than you owe. However, the IRS typically accepts fewer than half of the applications it gets in a year. For that reason, it’s a good idea to work with a tax attorney on applying for an Offer in Compromise. To be considered for an OIC, your tax return filings must be current. Also, you won’t be considered for an OIC if you’re in bankruptcy or under audit. A tax relief specialist can help you determine your chances of qualifying for an Offer in Compromise. The experts at Platinum Tax Defenders have saved thousands of clients hundreds of thousands in back taxes. Recently, the Platinum team got their client’s back tax debt lowered from over $140,000 to $100.
Make an appeal
As a taxpayer, you have the right to a collection due process hearing from the IRS Office of Appeals. If you want a review of a lien or levy notice, you can file an appeal. Also, if you disagree with an IRS employee’s decision, you can request a meeting with the employee’s manager. If you disagree with the manager, you’ll want to ask the Office of Appeals to review your case. Before you go up against the IRS, consult a tax relief specialist. A tax attorney is the only person who can represent you in court before the IRS.
As a last resort, filing for bankruptcy is a way to get rid of back tax debt. However, filing for bankruptcy is a long process, and there are lots of rules. It’s not advisable to file for bankruptcy without the help of a tax resolution expert first.
Received an IRS Notice of Tax Lien or Tax Levy? Get Help From A Tax Relief Professional
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. Working with a tax relief expert can be especially helpful when you start receiving tax lien or levy notices. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.