IRS Levy – How to Avoid One?

An IRS Levy is a legal seizure of property by the Internal Revenue Service (IRS) to satisfy a tax debt. The IRS can levy bank accounts, wages, Social Security benefits, and other forms of income and assets. The purpose of a levy is to force the taxpayer to pay their outstanding tax debt. The IRS typically uses levies as a last resort after attempts to resolve the debt through other means, such as billing and collection notices, have failed.

How to Avoid it?

Here are a few ways to avoid an IRS Levy:

·         Pay the tax debt in full:

Paying the outstanding tax debt in full is the easiest way to avoid a levy.

·         Set up a payment plan:

If you are unable to pay the debt in full, you can set up a payment plan with the IRS.

·         Negotiate a settlement:

The IRS may be willing to settle the debt for less than what is owed through an Offer in Compromise.

·         Request a hardship status:

If you can prove that a levy would cause undue hardship, the IRS may temporarily delay or release the levy.

·         Correct errors in the tax assessment:

If you believe the tax assessment is incorrect, you can dispute it with the IRS and request a review.

It is important to act quickly and take appropriate measures to resolve your tax debt and avoid an IRS Levy. Consider seeking the assistance of a tax professional for help.

Who can help you out?

If you need help resolving an IRS Levy, there are several professionals who can assist you:

·         Tax Attorney:

A tax attorney specializes in tax law and can represent you in disputes with the IRS.

·         Enrolled Agent:

An Enrolled Agent is a tax professional who is authorized by the IRS to represent taxpayers.

·         Tax Resolution Services:

Tax resolution companies offer services to help taxpayers resolve their tax debts and avoid levies.

It’s important to choose a professional who is experienced and has a good reputation. You can check with professional organizations, such as the National Association of Enrolled Agents, to find a qualified professional in your area.