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Tax Levy

If you are facing a Tax Levy, you need the professionals on your side. Tax Champions has been helping clients with their tax issues for over 35 years. We can help you overcome tax obstacles and get your financial situation back on track. 

What is a Tax Levy?

What is a Tax Levy? The IRS has the legal right to impose penalties on taxpayers who don’t properly pay their taxes.

For example, a criminal who fraudulently reported income may face a penalty of jail time or a taxpayer who has not filed their taxes on time may be assessed a monetary fine. Another legal course of action available to the IRS is a tax levy.

The IRS explains a tax levy as “a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.” The IRS generally reserves this option for cases in which their attempts to contact the taxpayer have been repeatedly unsuccessful.

Methods of IRS Tax Levy

The IRS has legal access to several types of levies.

After an assessment of the taxpayer’s assets, the revenue agent will determine which levy provides the easiest avenue to full payment of the debt. This varies according to each taxpayer’s individual resources. Wage garnishments and bank levies are among the most common methods of tax levy.

A wage garnishment is also known as a wage levy. The IRS uses this method to obtain regular payments from the taxpayer’s paychecks. They contact his or her employer with a notice directing the employer to withhold a specific amount from their employee’s paychecks and send it to the IRS.

The IRS then applies this to the employee’s back-tax debt. Wage garnishments continue until the debt is paid in full, regardless of employment changes. Should the taxpayer start a new job while the garnishment is in effect, the IRS sends a notice to the new employer. A wage garnishment can be stopped or reduced in some cases if the taxpayer makes other payment arrangements that are suitable to the IRS.

To obtain back-tax payments via bank levy, the IRS sends a notice to the bank directing it to freeze funds in your account. The freeze remains on the taxpayer’s bank account for 21 days, which gives the taxpayer an opportunity to address the levy before the funds are applied to his or her back-tax debt balance. If the bank account balance isn’t enough to pay the debt in full, the levy will remain in effect until the IRS is able to seize the appropriate amount. A bank levy may be lifted in extraordinary circumstances.

For more information, contact a reputable tax relief professional.

What to Do if You Receive a Notice of Levy from The IRS

After being notified of a levy, immediately determine which entity is responsible for it.

If you determine that the IRS has put the levy on your account, examine your records and verify the debt.

The IRS may lift the levy if they find that it’s an error.

They may also lift it if they find that it creates a significant financial hardship on the taxpayer or another agreement for payment is made.

Contact a qualified tax professional to represent your best interest in a negotiation with the IRS to remove a levy.

The IRS strives to attain the full amount of the back-tax debt balance from the taxpayer.

Your tax representative’s savvy understanding of tax law and IRS procedures allows him or her to establish an affordable payment agreement for the lowest possible amount.

Why You Should Choose Tax Champions to Help You With an IRS Levy

Tax Champions has been assisting taxpayers with a wide variety of tax levies for over 35 years.

Our experienced and qualified staff acts fast in the event of a hardship caused by a levy, as we’re committed to the financial well-being of our clients.

If you received a Final Notice of Intent to Levy or discovered a levy on your property, bank account, wages or more, give us a call immediately.

We’re available evenings and weekends for the convenience of our clients; give us a call now.

During our first conversation, we’ll be happy to conduct a private, free consultation to go over your circumstances and determine your options.

If you decide our services are a good fit for your needs, we’ll get started right away.

Give us a call today at 888.518.8964 or reach out to us by submitting your contact information in the blue box on the right side of the page. Sleep better tonight knowing that our team is acting immediately to resolve your issue. Call now.

 

Sources

[1] Levy. (2019, February 20). Retrieved from //www.irs.gov/businesses/small-businesses-self-employed/levy
[2] Whats the Difference Between a Levy and a Lien. (2018, August 20). Retrieved from //www.irs.gov/businesses/small-businesses-self-employed/whats-the-difference-between-a-levy-and-a-lien

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Walter Wotman, CPA

Founder & Managing Partner

Walter Wotman, CPA is the author of "Tax Champions Guide to Tax Resolution." Amazon #1 Best Seller in the Personal Finance category. He is one of America's most experienced tax negotiators with over 35 years of experience helping thousands of clients settle difficult back tax issues.

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