Stop a Tax Levy by Entering into an Installment Agreement

So you need to stop a tax levy? This is a difficult situation to be in. It means that you owe the IRS money, but have not decided to pay them or even attempt to do so. There are many ways to stop a tax levy which include bank levies, wage levies (often called wage garnishment) and so on. Some of them will work for you, some of them will not, and others you probably don’t even want to consider. One way to stop a tax levy is by entering into an IRS Installment Agreement. This is something you may have heard of, and is really a great way to get the IRS off your tail. Realize there are different types of IRS Installment Agreements based on your IRS tax debt amount. An Installment Agreement (IA) is when you agree to pay the IRS a certain amount of money every month instead of one lump sum. This is often times the better choice if you do not have the money in hand to pay all at once. Even if you are not facing a levy, you can still use an IA to pay the IRS. In fact, it would be better to set this up in advance of being notified or receiving an IRS "Intent to Levy" letter or CP notice. Before you enter into an IA you need to know what you are doing. As noted above, and most importantly, this means you are agreeing to send payment to the IRS every month on time and you understand that interest will accrue as well. If you break the terms of the agreement it is going to be canceled and you will be back in the same position often in a worse situation because of penalties. Make sure you are comfortable with your payment amount. As noted above, with an IRS Installment Agreement you will have to pay interest. Nobody wants to do this, but with the chance to pay small amounts of your debt over the course of many months or years, it is worth it. If you want to stop a tax levy by entering into an installment agreement you can do so on your own or by hiring a tax professional. As long as you know what you are doing and why this is the best option, you should be alright. Many people stop a tax levy through this type of agreement. Are you going to be next?