Know This First Regarding The Notice Of A Tax Levy
Citizens of the United States are required by federal law to file annual tax returns and pay any outstanding tax debts. Regrettably, not everyone can afford to pay their taxes. While the IRS does provide debt mediation, which can help you pay off your debt in a more manageable manner, not everyone is aware of this alternative.
When taxpayers fail to pay their taxes, the IRS will pursue them aggressively. When dealing with the IRS, tax liens and levies are among the most frightening penalties that people might face.
A notice of levy is a written letter that specifies the tax penalty’s terms and conditions. The IRS has the legal power to collect an outstanding debt by levying proceedings such as wage garnishment, bank account holds, and property seizure, according to the notice. The only way out of this terrible situation is to have the IRS levy lifted.
Now The Good Part: Handling an IRS Tax Levy
It’s a severe scenario when you’re facing an IRS tax levy. The IRS has a number of options for collecting the money you owe them in unpaid taxes, including levying your property. It’s not something to take lightly; the IRS will only levy your property after you’ve received several notices and have failed to react in a timely manner.
When the IRS seizes your property to pay off your obligation, it is known as a tax levy. The IRS will frequently levy a bank account, which means they will be able to freeze your accounts and take your money. Although this is a one-time event, the charge only applies to funds in your accounts at the time the levy is applied. After that period, any money deposited is unaffected.
A levied or garnished paycheck is also a possibility. When this occurs, a portion of your money will be sent to the IRS before you see it. This can go on indefinitely until your tax debt is cleared. Any federal or state payments to you can potentially be seized by the IRS. Social Security and Medicare benefits, as well as your state income tax refund, are examples of them.
Our tax audit specialists at Levy and Associates have over 20 years of experience representing clients throughout audits. If you need assistance with a tax audit, call 1-800-TAX-LEVY or fill out our contact form.