3 Speedy Solutions To Stop IRS Levy Procedures

An IRS tax levy is an assertive action by the IRS in order to get your attention. It is an authorized seizure of your assets to satisfy a tax balance. The Irs can garnish your bank accounts, your salaries and practically any third party account or personal assets. Bank levies and wage levies are the primary type of garnishment that the IRS issues. Usually 3 requirements must be satisfied before the IRS can enforce a levy:rn1.The IRS sends the tax debt due and will send the tax payer a Notice and Demand for Payment rn2.The tax payer fails to or declines to pay the tax debt andrn3.The tax payer is sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at minimum 30 days prior to the levy. It might be given to the individual in person or placed at his or her house, but normally it is sent to the last known address the Internal revenue service has on file. An IRS tax levy continues until the tax debt is paid for completely, the time to collect has expired or until the levy has been released. The three quickest ways to stop IRS levy activity are: 1. Pay the tax liability in full. In the event that the debt is paid off the IRS will discharge the tax levy right away. 2. A Streamline Installment Agreement. If the amount of the tax liability is under $25,000, a streamline Installment Agreement could be arranged. This may be setup with minimum financial disclosure. It is setup over 60 months. A streamline installment could be setup for below the minimal necessary for 60 months but financial information must be given and it will need IRS manager approval. 3. File Bankruptcy. The filing of a bankruptcy is going to immediately put a “stay of collection” on an individual's account. There is not any need for any sort of disclosure. It is automatic by bankruptcy law. Nonetheless, there are many tax payers which owe taxes and cannot pay the taxes fully, or the debt is over $25,000. Bankruptcy won't cover all types of taxes and for those that could be filed, there are very strict guidelines. I suggest obtaining guidance from a bankruptcy attorney prior to considering bankruptcy as an solution. There are other options available when a tax payer does not qualify for any of the above. When my client does not qualify for any of the previously mentioned, then I can have the tax levy released by setting up an Installment Agreement that calls for financial disclosure and manager approval or I can place the particular case in a hardship or currently non-collectible which will also call for supervisor acceptance and financial disclosure. With both an Installment Agreement and Currently Non-Collectible, the interest will keep accruing on the tax liability. That is the reason why I will also look to see if my client could meet the criteria for an Offer in Compromise or additional tax relief that will deal with the balance. I suggest that whenever financial disclosure is needed, that the taxpayer have expert representation, with experience and knowledge of the tax code.