Reasons The IRS Might Use A Tax Levy
People who frequently owe the IRS a large amount of debt often have a fear about the danger of experiencing a tax levy. In fact, tax levies often be the one topic that most individuals dread in terms of handling the IRS. Nevertheless, these emotions only tend to happen when people are unable to pay their debts at all.
A tax levy transpires when the IRS takes control of your properties in an effort to pay for your debt. By law, the IRS does not have to get any support for these events within a court. Additionally, the IRS is allowed to take any kind of property that you have in exchange for a payment. This suggests that the IRS can use a vehicle, home, or any other belongings of monetary value as settlement for your debt.
The IRS is allowed to sell your possessions so they can reduce your tax debt or the amount you owe. Another alternative happens when the IRS claims money out of your paychecks or any income as a form of money also. Even if you are getting money from a loan or have taken out life insurance, the IRS can direct these components and use them as a way to get back the money that you owe for taxes.
However, this is not to say that the IRS currently seeks individuals that it can levy in order to gain additional money. Most levies only happen when the individual has gone out of their way to avoid making crucial payments or other factors that have come up over time. For example, the IRS will provide you with a form that discusses that you need to make a payment towards your taxes. If you disregard the original contact, they will try to get in touch with you again. If it appears that you are deliberately ignoring them, they will send a notice telling you that they expect to levy you and inform you about a hearing that you can attend within 30 days. If you do not do something, you will be levied.
In nearly all cases, the IRS will desire to work with you rather than getting ahold of you about the tax levy. Individuals who are avoiding making their payments or have neglected to pay the IRS have a great chance of experiencing a levy. There are other situations where you may receive a levy notice but no action is actually taken against you. In example, if you get a notice but you have paid your required tax payments, it's less possible that you are going to be given a levy. Likewise, if there has been a mistake in determining that a levy is required, it may also not take place.
Even though getting a Tax Levy letter is apt to make you worried about your belongings and what could happen, it can normally be prevented. If you communicate with the IRS and make your payments or tell them that there has been an error, the levy can be prevented.
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