Stop IRS Levies
If you owe money to the Internal Revenue Service (IRS) and have failed to pay it or make alternative arrangements, the IRS may issue a tax levy against you. While a tax lien gives the IRS interest in property you own, a tax levy allows the IRS to seize your property and sell it to satisfy the debt you owe. However, the IRS will issue the tax lien first. It’s important to keep in mind that the IRS can stake claim to any property or monies you have an interest in, such as a life insurance policy, retirement account, or royalty income. The funds do not need to be in your own name for the IRS to issue a tax levy against them.
An IRS tax levy is a primary collection tool used by the agency that also includes wage garnishments and freezing bank account funds. It is something you want to avoid, but many people feel intimidated and don’t know what to do next. Rather than ignore an official demand for payment from the IRS, turn to Yarborough Professional IRS Debt Solutions. Many members of our staff are former IRS agents who have the skills and ability to propose an agreement that favors you but also is acceptable to the IRS. To learn how our personal experience as former federal agents can significantly assist you, continue reading.
What Steps Does the IRS Take Before Issuing a Tax Levy?
The following three things must happen before the IRS can move to take over your property or financial accounts. These include:
- It must send you an official Notice and Demand for Payment from as assessed tax bill.
- You have failed to respond to the notice or outright refused to pay the bill.
- The last step is for the IRS to send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This must take place at least 30 days before the IRS can initiate any levy actions. You may receive this notice by personal delivery at home or work or by registered mail. For the latter option, you must acknowledge receipt of the item by registered or certified mail. If the IRS is not aware of your current address, it will mail the final notice to the last known address for you.
Act Quickly to Avoid Serious Consequences
When it comes to dealing with the IRS, the best approach is to be proactive in hiring Yarborough Professional IRS Debt Solutions to represent you. Not only does this show initiative on your part to settle your debt rather than ignore it, you will also gain our insider knowledge of the IRS, as many of our Enrolled Agents previously worked as revenue officers. Even if a levy has already been issued, we will approach the IRS on your behalf to work out a settlement you can live with. Some of the possible solutions include:
- Setting up a monthly payment plan you can afford
- Settling your tax debt for less than what you owe
- Having your tax debt released because it causes an undue hardship, which means paying it would leave you unable to meet basic financial responsibilities to support yourself and your family
If you take no action once the levy has already been assessed, you may be subject to what is known as a continuous levy. This means that the IRS can continue to withhold funds from your paycheck or bank account indefinitely until you meet your tax obligation.
The Enrolled Agents at Yarborough understand what it’s like for clients to have their lives turned upside down due to the demands of the IRS. Furthermore, we have the unique experience of having previously worked as federal agents. What you are going through is extraordinarily stressful and can have a long-term impact on your finances, health, and personal relationships. We encourage you to contact our office to schedule a free consultation as soon as possible. An Enrolled Agent assigned to your case will review it in depth and let you know the best possible solution for your situation.