IRS Tax Levy

If you have been subjected to an IRS tax levy, it is important to know and understand the details of this type of seizure. This is a legal measure taken by the Internal Revenue Service in order to satisfy a debt with the government agency that is directly related to tax debt.

If an IRS tax levy is imposed upon you, the government agency may actually take possession of the property that you have. The property acts as a pay off to the tax debt. If you know that you have a debt with the Internal Revenue Service, it is imperative to work out a realistic payment plan so that you do not become subjected to an IRS tax levy.

If you are subjected to an IRS tax levy, the Internal Revenue Service may seize property that is considered “real” and “personal”. This may be property that you have a vested interest in, or it could be property that you own outright. Examples of property that may be seized under an IRS tax levy are vehicles, boats, and even your house.

The IRS may also take possession of property that is technically yours but is in the possession of another individual or specific company. Examples of this include the compensation that you receive from employment, income from rental property, your bank account, the value that is associated with your life insurance policy, and similar accounts. Being subjected to an IRS tax levy will subject you to many financial challenges.

In order for an IRS tax levy to be put into place, there are a few things that must first occur. First, the IRS will send you what is referred to as a “Notice and Demand for Payment”. If you fail to follow through on making a payment or making appropriate payment arrangements, a paper called “Final Notice to Intent to Levy and Notice of Your Right to a Hearing” will be sent.

This is sent out at least thirty days prior to the beginning of an IRS tax levy. If you receive this type of documentation, it is important that you attempt to reach a resolution with the IRS. If you fail to show accountability for the debt, the IRS tax levy will proceed and you will be subjected to a variety of loss related to the property that you own or have a stake in.

If you are wanting to work a way out of an IRS tax levy, you should speak with a manager from the Internal Revenue Service. You also have the option of filing for what is referred to as a “Collection Due Process Hearing”. This is done through the “Office of Appeals”. When it comes to an IRS tax levy, this must be done within the first thirty days in which you received your notice. During the official appeal, many considerations will be made regarding your individual claim. When this appeal concludes, you will be informed as to whether or not your IRS tax levy will close or proceed.

We have additional information on this subject you may be interested in reading: tax resolution services and irs form 1098

Irs Tax Levy

irs tax levy information

IRS Tax Levy

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