Receiving an IRS tax levy notice can be an intimidating experience. You may have questions about what to do next and whom to call regarding your levy. This quick guide explains an IRS tax levy, what it means to receive a notice, and whom to call about a tax levy. We’ll also discuss whom to contact and the steps to take when you receive a levy notice.
Overview of IRS Tax Levies
An IRS tax levy is a legal seizure of a taxpayer’s property or assets to satisfy a tax debt. The IRS can place a levy on wages, bank accounts, retirement accounts, investments, and other sources of income. Before they do this, they’ll send a notice of levy to the taxpayer and any other parties that the levy affects, such as employers or financial institutions. This notice will explain the amount of the debt, the steps taken, and how to resolve the situation.
What It Means to Receive an IRS Tax Levy Notice
When you receive an IRS tax levy notice, the IRS has taken legal action to collect the money you owe. The notice will explain the amount of the debt and the steps the IRS has taken to collect it. It is essential to read the notice carefully and understand the consequences of not paying the debt.
The IRS will continue to take action to collect the debt until it is paid in full. This may include garnishing wages, seizing assets, freezing bank accounts, etc. The notice will explain the actions taken if the debt is not paid.
Whom to Contact About an IRS Tax Levy
Suppose you have received notification from the IRS that they intend to place a tax levy on your wages or bank accounts. In that case, taking action as soon as possible is crucial. A tax levy is the IRS’s legal action to collect unpaid taxes. As such, you must comply with your filing and payment obligations.
The first step is to contact the IRS to discuss your situation and explore options for settling the debt. Depending on your circumstances, the IRS may be willing to work with you to set up a payment plan or to negotiate a settlement amount.
If you cannot resolve the issue with the IRS directly, you should contact a tax professional. A qualified tax professional will help you understand your options and how to resolve the issue. They will also be able to provide you with advice and assistance in negotiating a settlement with the IRS. Additionally, they can help you to develop a plan to ensure compliance with the tax laws and regulations and to avoid future tax problems.
Steps to Take When You Receive an IRS Tax Levy Notice
Receiving an IRS Tax Levy notice can be a frightening experience, and it is critical to take immediate action to resolve the issue. The first step to take is to understand the notice and its implications of it.
The IRS Tax Levy is a legal process that allows the government to seize assets to satisfy a tax debt. It is vital to understand that the IRS will act quickly to collect on the debt, so taking the necessary steps to resolve the issue is essential.
The next step is to contact the IRS to discuss your options. It is important to remember that the IRS is not obligated to work with you, so it is crucial to be prepared to negotiate a resolution. This may include providing the IRS with the necessary documentation to prove the debt is invalid or negotiating an installment plan. The IRS may also be willing to waive part of the debt if you can demonstrate financial hardship.
If you cannot resolve this with the IRS, it is crucial to seek professional assistance. An experienced tax attorney can help you understand the tax laws and guide you in resolving the issue. The attorney can also help you negotiate with the IRS and work out a payment plan. In some cases, the attorney may be able to reduce the amount of the levy or even have the levy removed altogether.
Regardless of your steps, acting quickly and taking the necessary steps to resolve the issue is essential. The IRS will not hesitate to take action if the debt is not paid, so it is vital to resolve the issue immediately. With the proper guidance and assistance, you can successfully resolve the tax levy and move forward with your life.