Things You Should Know About IRS Levy
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The IRS Levy is not the same thing as a federal tax lien, which is the IRS’s authorization to seize property. The IRS Levy is the act of the seizure or property, assets or income.
The federal government is empowered to enforce the IRS Levy if you were too slow to try to work with the IRS to reach agreement. This means they can begin to garnish your wages without your consent in an attempt to recover the money you owe them.
The IRS Levy usually comes into effect when a person ignores the tax office’s requests for payment of taxes you owe. It can also be enforced if you call the IRS and try to make payment arrangements on a large tax debt that are just too small to pay off the amount you owe.
If this happens and they begin to garnish more money out of your income than you expect, this could seriously leave you with insufficient funds to support yourself or your family. You could lose all control of your own income, your property or your assets.
IRS Levy could also mean the seizure of income you receive from Social Security or disability payments or even refunded taxes.
Another reason for the IRS Levy may come into force if you have already made a payment agreement to try to repay your tax debt and that you miss payments or do not adhere to the agreed payment plan for you.
In addition to seizing the wages and other income, the IRS Levy may also seize bank accounts or the sale of your property.
Perhaps the easiest way to avoid an IRS Levy is to contact the ministry to which you owe money and work through a payment plan that you can hold comfortably while continuing to repay the debt. Once you have entered into this agreement, be sure to monitor your payments on time, every time.
If you are uncertain to face the prospect of an IRS Levy on your own, then consider hiring a tax lawyer to act as an intermediary. You may find a professional who has a deeper understanding of some of the most complex tax issues and may be able to refer you to the things you may not have considered.
These issues could include tax forms that you may be entitled to legal aid or even to negotiate for an offer of compromise with the IRS.
