There are pro-active actions you can take to reduce the chances of having a tax levy placed on your assets.
If you are unable to prove that the tax levy is unjustified, there are other approaches to consider:
1.Pay your Debt in Full:
The best way to avoid problems with the IRS is to pay your tax bill in April when it's due. If you're having trouble making payments, contact the IRS to make appropriate arrangements. If you could pay the IRS in full, you most likely wouldn't be here right now. So let's move on.
2. Pay Installments Until the Debt is Paid:
If you cannot pay your tax bill in full because you are experiencing financial hardship, you could enter into a payment plan. You could make payments over a period of time. With penalties and interest, you will more than likely pay twice as much as you originally owed. Interest and penalties still continue to accrue. Before you enter into an Installment Agreement, have a conversation with a tax professional.
3. Use IRS Regulations Against Them - Settle Your Tax Liability:
When hit with a tax levy, there are procedural actions which can have that levy stopped and released in one day. Our teams can put into place different tax relief programs that will get the IRS off your back while we put together an IRS settlement package.We can tie up the IRS and save your paycheck and bank account.With the right representation, you can make a settlement offer to get rid of your tax debt. An "Offer in Compromise" can be used to prove that you are unable to pay the outstanding balance that you owe. If approved, the IRS will agree to let you pay back dramatically less than your full tax liability. Flat Tax Fee Service has a 96% Offer in Compromise rate of success.
4. File for Bankruptcy:
While this isn't an ideal option, in some cases, it can be effective but it isn't our first choice. You should note, however, that the process is long and there are lots of restrictions. Even if you do everything right, there is no guarantee that our tax debt will be forgiven. Before deciding what to do, consult both a tax professional and a bankruptcy attorney so that you have a complete picture.
THE TAX PROS AT FLAT FEE TAX SERVICE ROUTINELY HAVE A TAX LEVY STOPPED AND RELEASED IN ONE DAY.
What Can A Tax Levy Affect?
There are several ways that a tax levy can collect funds, including automatically withdrawing the funds from your account or garnishing your wages. Other common strategies include:
The IRS can contact your banking institution and require them to stop all withdrawals from your account for 21 days, and then take the money from your account.
b. Wage Garnishment:
The IRS can have your employer withhold a portion of your wages to pay the tax debt. This also goes for seizure of anyone's Social Security and Veterans Pension. This type of tax levy is continuous which means it is ongoing unless stopped and released.
c. Property Seizure:
The IRS can take any property that you own, sell it, and use the profits to cover the amount you owe.
d. Decrease the Amount of Your Tax Refund:
The IRS can seize any funds that are due to you via a refund. They can also intercept any refunds due to you from the state and apply the money toward your federal amount owed.
When you find out that the IRS has ordered a tax levy against your assets, it is important that you seek tax counsel immediately if you want to save your money and to negotiate a settlement. Pro Tip: Never, ever ignore IRS billing notices.