Any correspondence from the IRS can be enough to make your heart sink, but receiving a Notice of Levy does warrant concern. When you owe money to the Internal Revenue Service, or IRS, they can take various routes to get it from you.
A levy is one of the most serious actions the IRS takes in relation to unpaid taxes. It enables the IRS to seize property or assets that you own or have an interest in, including your home, vehicle and wages. Typically, a levy will last until the remainder of the debt is paid. However, the IRS may seize and sell your assets in order to cover the outstanding tax you owe them.
How to Avoid a Levy
You can avoid a levy by paying your tax in full and on time. If this isn’t possible, you may be able to agree a payment plan with the IRS, so that you can pay your outstanding taxes over a longer period of time.
Making these arrangements can prevent the IRS from pursuing a levy, so it is well worth contacting them as soon as you know you will be unable to pay your tax bill. Unfortunately, many people simply avoid written correspondence from the IRS, which only makes matters worse.
What to Do If You Receive a Notice of Levy
Usually, the IRS will send a Notice and a Demand for Payment before they begin the process of levying your property. If you fail to contact them and do not pay the outstanding debt, they may send a Notice of Levy and a Notice of Your Right to a Hearing.
It is essential that you take action at this point. A levy notice only has to be sent thirty days before the levy is applied, so you may not have much time to stop your property being seized. While it is important to act swiftly, there is no need to panic. A calm and organized approach can still prevent a levy from being applied, even if you have already received a levy notice.
Seeking Help after a Levy Notice
If you have received a Notice of Levy and are still unable to pay the outstanding debt in full, you may still be able to broker an agreement with the IRS. While you are entitled to contact the IRS directly, you may find it beneficial to seek independent advice. With assistance from specialists, such as Levy Tax Help, for example, you can gain professional support throughout the process.
If you choose to retain a tax attorney, they will be able to contact the IRS and negotiate with them on your behalf. In many instances, tax attorneys are able to stop the levy being applied to your property, negotiate a realistic payment plan or an Offer in Compromise. This will enable you to resolve the situation without losing ownership of your property or assets.
While receiving a levy notice can certainly be alarming, the matter can be resolved. By seeking professional guidance or contacting the IRS, you can successfully manage your finances, address your