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.