Effective Ways to Release a Tax Levy | Flat Fee Tax Service
Updated: Nov 22, 2019
When the IRS sends a notice of intent to levy, you will have 30 days to challenge the tax levy, pursue tax resolution, or pay the balance due. Most likely, if you are here reading our article, paying your tax debt in full is not a viable option.
If you receive a notice of intent to levy and you cannot pay the tax debt in full before the IRS is scheduled to seize your assets, the tax levy can be stopped and released with proper tax resolution. "Tax resolution" can be composed from the following: Currently not Collectible, a tax settlement via an Offer in Compromise or an Installment Agreement. Quick positive action is recommended to avoid the levy altogether.THE IRS TAX ATTORNEYS AT FLAT FEE TAX SERVICE ROUTINELY STOP A TAX LEVY IN ONE DAY.
STEPS TO TAKE:
1. Pay Off Your Tax Debt Completely - TaxLevies have one intent: to authorize the IRS to collect the money that it is owed. Therefore, if you can gather the money to pay your debt in full (including penalties and interest) within an acceptable time-frame (up to 120 days), the IRS will release its levy right away. These agreements can be negotiated by phone, mail, or in person.
2. Set Up an Installment Agreement - If you cannot pay your debt in full, you may negotiate an Installment Agreement by filing Form 9465, Installment Agreement Request. Negotiating an installment agreement also releases tax levies right away.
Getting yourself is actually more complicated than simply "saying yes" to what the IRS dictates what to pay. The IRs has many rules regarding payment plans and they are not going to tell you what they are. It is easier for them to give your "a number to pay." It is recommended that you consult with an experienced tax professional before you decide what to do.
3. Enter an Offer in Compromise - Another way to release a tax levy is by filing an Offer in Compromise (OIC). Learn more here.
4. File a Collection Appeal Request or Collection Due Process -
You may also file for a Collection Appeal Process or a Collection Due Process hearing, which allows you to appeal a tax levy and releases the levy while your appeal is being examined. While some taxpayers represent themselves, those who seek representation by a Tax Attorney have a higher success rate.
The Collection Appeal Process usually results in quicker decisions than the Collection Due Process, however you cannot contest the results of the Collection Appeal Process.
5. Currently not Collectible (Prove Undue Hardship) - The IRS may also release a tax levy if demonstrated that the IRS levy would deplete you of the necessary money needed to provide everyday essentials. To do this, you’ll need to present financial information to the IRS that validates an undue hardship. You can provide this information to an IRS representative by telephone, in person, or by filing an Offer in Compromise (either online or in hard copy mailed to the IRS).
If you do not have the money to pay at all, you may be placed in Currently Not Collectible status. You may stay in Currently Not Collectible Status indefinitely, however your financial situation must be reassessed every year. If you stay in Currently Not Collectible Status long-term (generally 10 years), the statute of limitations may expire and your tax debt would be erased.
6. Avoid Tax Levies if Possible - It's always better to get ahead of any IRS enforcement action. It’s possible to have a tax levy released, avoiding tax levies all together is your best bet. While the IRS is prepared to work with taxpayers. A taxpayer should have an experienced tax professional interact with the the IRS on their behalf as it’s vital to continuously cultivate communication. If your tax issue is difficult or you are confused about your tax relief options, give us a call. Our team of trusted, experienced tax professionals are happy to help you work with the IRS and resolve your tax problems.
I am Dave Rosa. It is my duty to provide everyone with a thorough comprehensive consultation. They are free and confidential. Our conversation will be approximately 20 to 30 minutes.
By the conclusion of our conversation you will be completely informed as to your tax relief options and what you can expect as a conclusion.