Getting hit with a tax levy may seem like something that could never happen to you. It seems unfair that the government can simply take your money directly from your paycheck, yet they do. The Internal Revenue Service (IRS) will employ this means of tax collection for overdue payments.
When with the IRS move forward with a levy? The IRS generally sends a Notice and Demand for Payment, or a tax bill, before moving forward with a levy. The IRS will send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing if the bill is not paid. This is sent 30 days prior to the levy going into effect.
How can I stop a levy? Ideally, it is best to attempt to avoid the levy in the first place. A taxpayer can challenge the tax levy action after receiving the notification noted above by submitting an intent to appeal.
Options are still available even if this process is not followed. Here are three options for those who are currently dealing with a levy:
- Pay the bill. In a perfect world, you could come to an agreement with the IRS on the right amount of tax due and pay the bill. Although this world is not always perfect, there are options available that may help make things seem a bit rosier. Even if you cannot pay the full tax bill, other options may be manageable. An offer in compromise or installment payment agreement may be available.
- Appeal the levy. Another appeals process is available for those who are already subject to the levy.
- Establish economic hardship. In some cases, a taxpayer may be able to show that the levy creates an economic hardship. This requires establishing that the levy results in the failure to meet basic living expenses.
Navigating the various processes that are available to remove the levy or avoid in the first place is difficult. Experienced legal counsel can help. Contact a property seizure appeals attorney to discuss your options.
