The levy is the IRS's way of ensuring that you pay your tax debt or penalties. Your income and your properties may be levied. It is a drastic method that can financially incapacitate you, so if you receive a Levy Notice, it's best to act immediately.
The initial step to stopping a levy is to enlist the help of a tax attorney. When you consult with the lawyer, you will need to reveal your IRS issues and any settlement details or notices received from the IRS. Taxpayers normally receive a Demand for Payment statement from the IRS prior to being served the Levy Notice. Why this Demand for Payment wasn't settled will need to be justified. There are many valid reasons for this, including IRS processing errors, financial hardship, or bankruptcy, but you need to have documentation that effectively explains why the taxes or penalties have been unpaid.
Ignoring an IRS Levy Notice is the error numerous people make. You should ask a tax lawyer who can counsel you and help you ask for a Collection Due Process hearing at the IRS Office of Appeals in your area. If you've settled your taxes and were levied because of an IRS mistake, you can present evidence that the IRS committed an error in the hearing.
Immediate settlement following the Levy Notice and filing for bankruptcy are a few causes why a levy cannot be continued by the IRS. Because of the statute of limitations, taxes assessed over ten years ago cannot be collected by the IRS. If the IRS levy was served after the expiration of the tax collection period, you do not need to pay your taxes.
Working out an installment plan to settle unpaid taxes can also be achieved in the Collection Due Process hearing. If you do really owe the IRS money but aren't able to pay the entire amount, you will need to work out a settlement plan with the Office of Appeals. While not the best option, the installment option will be less of a financial problem than having your wages garnished or your bank account levied.
The IRS will continue the levy, until your debt is paid off, it it's released officially, or the statute of limitations is met. If you file for refund within thirty days after the IRS erroneouslyly levied your bank account, your bank charges will be reimbursed.
Your IRS problems will only worsen if you ignore a Levy Notice. To safeguard your assets, it's better to get immediate help.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment