IRS Levy - 5 Easy Steps to Follow
Here's what you need to know about an IRS Levy.
It comes after the IRS sends you notices in the mail to respond.
When someone ignores the agency, they basically feel that you have no plans to remedy the situation.
Generally, they will first send you what's called a Notice and Demand for Payment.
Once you neglect to reach an agreement, you will then receive a Final Notice of Intent to Levy and Notice of your Rights to a Hearing.
This is when it gets very serious.
Keep in mind that if the IRS sends a notice to your employer demanding that they levy your wages, well to put it mildly, they have no choice.
If your employer does not comply, then they will get in trouble themselves.
It is for that reason and many others that you should take action immediately.
Steps you should take to release or prevent an IRS Levy:
It comes after the IRS sends you notices in the mail to respond.
When someone ignores the agency, they basically feel that you have no plans to remedy the situation.
Generally, they will first send you what's called a Notice and Demand for Payment.
Once you neglect to reach an agreement, you will then receive a Final Notice of Intent to Levy and Notice of your Rights to a Hearing.
This is when it gets very serious.
Keep in mind that if the IRS sends a notice to your employer demanding that they levy your wages, well to put it mildly, they have no choice.
If your employer does not comply, then they will get in trouble themselves.
It is for that reason and many others that you should take action immediately.
Steps you should take to release or prevent an IRS Levy:
- Review your records to see if all your taxes have been filed (All your tax years must be filed in order for the IRS to be willing to negotiate your IRS debt) If you have some years of unfiled taxes, then consider hiring an Attorney, CPA or Tax Representation Firm that has a CPA and Attorney on staff to prepare your taxes
- Consider filing for a Collection Due Process hearing with the Office of Appeals to stop your levy (must qualify.
Also you should research this to make sure you understand the legalities) - Determine if you have been charged penalties and interest (If so, you may qualify for penalty abatement to reduce nearly all your penalties)
- Do your homework and try to figure out if you actually owe the taxes (Did the IRS file a Substitute For Return? If so, this may have caused you to owe which can be corrected
- Determine whether you may qualify for an IRS Debt Settlement program, Offer In Compromise, Installment Agreement, Innocent Spouse or Currently Not Collectible Status Once you have followed these steps, you will begin the sometimes grueling process of negotiating with the IRS to settle your back taxes.
If you have experience with preparing taxes for both individual or business taxes if that pertains to your situation, then you will have a better understanding of the process.
Stopping your IRS Levy can be done very quickly but it may only be temporary relief.
Usually when you hire a professional IRS Representation Firm, they will remove the levy in a very quick fashion.
However the actual tax settlement to resolve your entire debt can be a lengthy process.
This is serious business so you should not just rely on luck.
If you are determined to resolve your IRS Levy, then you can do it.
If you have the time, patience, knowledge and experience at hard nosed negotiation, then should be able to resolve the situation.
Again, if you have received an IRS Levy or notice, then you may be better off hiring a Tax Attorney, CPA, etc.
to handle the situation for you.
Source...