Stopping IRS Levy
Stopping the IRS levy is a process that can be tricky to navigate. We’re here to help you understand the process and explore your options. Learn more here.
How to Stop IRS Levy
You must act if you have received a notice of intent to levy or are concerned that the IRS will seize your assets soon. Depending on your circumstances, you may be able to set up a payment plan, file an appeal to stop an IRS levy or seek other relief.
What Is an IRS Levy?
A levy refers to an attempt by the IRS to seize your property to pay for tax debt. Tax levies can include penalties such as wage garnishment or the seizure of assets and bank accounts.
Even though they sound similar, IRS levies are not the same as tax liens.
A lien is a claim used as security for a tax debt, whereas an IRS levy permits the IRS to actually seize and sell the property. If you fail to pay your taxes (or settle your debt), the IRS or a state agency may seize and sell any real or personal property in which you own or have an interest.
Alternatively, the IRS may levy properties you own but are held by someone else. Examples include your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, and the cash loan on insurance.
How Can a Levy Affect You?
Tax levies can affect your property and assets. Your house may be in jeopardy as well. Although that is often the last resort, it can happen. If it’s any consolation, unemployment benefits, certain pension and disability benefits, workers’ compensation and child support payments can not be seized.
However, if you are hit with an IRS levy, wage garnishment is a common occurrence, and your bank accounts can be frozen as well.
Notice of an IRS Tax Levy
An IRS notice of levy is a letter from the IRS explaining that the agency will begin collecting your tax debt by any means necessary.
A taxpayer will typically receive documents titled Notice of Intent to Levy, Final Notice, and Notice of Your Right to A Hearing. These documents are either sent to the taxpayer’s last-known address or transmitted in person at least 30 days before the levy is issued. The IRS uses the notice to inform the taxpayer that it may begin contacting third parties, such as employers and banks, in order to collect information about the taxpayer’s tax liability.
After you receive this letter, you officially have 30 days to settle your tax debts before the levy actions become official. Receiving an IRS levy release is a delicate process that should not be attempted without professional assistance. You might need the help of an Oklahoma Tax Attorney.
How Do I Get a Levy Released?
The IRS always leaves a dedicated line on the tax levy notice. You might want to reach out to them first after receiving the notice of intent.
However, in most cases, it might take time to get through to the IRS. Like you, so many people are trying to get through to a limited staff of the IRS.
If you’re struggling with an IRS bank levy or wage garnishment, the best course of action is to seek professional help. A tax relief company can put a stop to IRS levy actions quickly, so you can get back to your life.
When you’re ready to move forward and get the IRS off your back, reach out to us for a free consultation. We’ll help you understand your options and put an end to the IRS levy.
How Do I Stop an IRS Levy Quickly?
There are different options available to you to stop an IRS levy. You can avoid a levy by paying your due taxes and filing returns on time. If you need more time to file, you may request an extension. Being proactive and not ignoring IRS billing notices can be the key to avoiding levies.
Other options are as follows:
- You can pay the debt in full if you have the money.
- If you can’t pay what you owe, consider entering a partial payment agreement (streamlined installment agreement) with the IRS and paying as much as possible. You can also work with the IRS to resolve the remaining tax debt.
- If you think paying the debt could cause financial hardship, you could ask the IRS for an offer in compromise. This allows you to pay only a portion of the entire debt instead of paying all.
- You could also opt-in for a currently not collectible status with the IRS. This means you will make the payments later on.
- Call the IRS to dispute the amount you owe and go over your account details.
- Contact dedicated tax pros to discuss your options.
Legal Methods for Stopping an IRS Levy
When you speak with a professional on your tax levy release, there are many options they can use. Examples include:
- If you want a review of a lien or levy notice, you can request a collection due process hearing from the IRS Office of Appeals.
- Another option is to declare bankruptcy. Although this is not a good idea, it can work sometimes. But it has a very high failure rate, and it’s not advised.
Bear in mind that the IRS must release a levy if it determines that a taxpayer has already paid what they owe or that releasing the levy would help them pay their taxes. If the property’s value is estimated to be worth more than the amount owed or the period for collection ended before the levy’s been issued, then the IRS is also required to release a levy.
Get IRS Levy Help From a Qualified Tax Resolution Specialist
If you have gotten a notice from the IRS, you must act quickly. This is one of the harshest IRS collection methods and can cost you a great deal.
You may want to consult with a tax relief professional (EA, CPA, or an Oklahoma Tax Attorney) to help resolve your problem.
When the IRS contacts you, they will expect you to know your rights and what to do next. Be prepared by knowing what steps to take with the help of a tax attorney.
The tax pros at Taxation Solutions have decades of experience helping people with bank levies, wage garnishments, and other IRS collection methods. We know how to deal with the IRS and get the best results for our clients.
Call us today at (405) 643-4567 for a free consultation.