When you are hit with a tax levy by the IRS, you are hit with one of the harshest demands that the IRS can make. But you have options, and there is help available.
A tax levy is a legal seizure of your assets in order to pay your taxes to the IRS. It doesn’t happen out of the blue. There will first be demand letters and warning letters and then a notice of a Demand for Payment. When you neglect all of these, the tax levy follows. Yes, there will be other paperwork sent to you about having a right to a hearing, but at this point, you need help — and fast.
There can be a bank levy. The IRS can seize your paychecks, your pension payments, and even Social Security retirement payments. Property can be seized. Business inventory and even your business can be seized. Your home and your car can be seized. Even a life insurance policy can be seized.
How To Resolve A Tax Levy
The fastest and simplest way to resolve a tax levy is to pay what you owe, but what if you can’t write a big check to the IRS? This is when you need a tax professional and legal advice to work with and negotiate with the IRS on your behalf to make use of the various Fresh Start and Offer In Compromise programs.
Other arrangements can also be made: you can enter into a payment plan, you can file an appeal, and prove financial hardship. A tax pro can help guide you.