How To Deal With A IRS Tax Levy
Individuals who commonly owe the IRS a considerable amount of tax debt usually have a fear about the risk of experiencing a tax levy. Tax levies are perhaps one of the most frequent fear occurrences that are associated with the IRS in general. Generally, these emotions only happen if the person is not able to pay their debt or has not taken any action to solve the situation more effectively.
Essentially, a tax levy occurs when the IRS seizes your belongings as payment for the tax debt that you owe. By law, the IRS does not have to get any support for these actions within a court. Likewise, the IRS can take any belongings as settlement for your debt. This indicates that the IRS can use a vehicle, home, or any other assets of monetary value as settlement for your debt.
The IRS is permitted to sell your possessions in order to reduce your debt or the amount you owe. A different option occurs when the IRS claims money out of your wages or any income as a form of money also. Even if you are receiving money from a loan or have taken out life insurance, the IRS can manage these elements and use them as a technique to get back the money that you owe for taxes.
It must be noted that this does not mean that the IRS is in search of taxpayers that can levy for access to resources. A levy only occurs when the individual seems to be avoiding making payments. Firstly, the IRS will communicate with you and explain that a payment is owed for your taxes. If you disregard this contact, they will communicate with you again in the future. If you continue to disregard them or refuse to pay the tax, you will receive a letter about their intent to levy and a hearing will happen in the next 30 days. During this time, if you do not take action, it is inevitable that you will be levied.
Generally, the IRS will get in touch with you with intent to work with you on payments instead of a tax levy. The use of a levy only occurs if it looks like you are intentionally avoiding making payments or you have refused. Of course, there are also situations where you can get a levy notice but there is no corresponding action. In example, if you get a notice but you have paid your obligatory tax payments, it's less likely that you are going to be issued a levy. Similarly, if there has been an error in determining that a levy is necessary, it may also not take place.
Although getting a IRS Tax Levy letter is likely to make you anxious about your belongings and what may happen, it can normally be prevented. If you are prepared to communicate with the IRS to tell them about errors that they made or payments that you plan on offering, using a levy is less probable to occur.
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