IRS Levy and You

With an IRS levy, the IRS can take ownership of your assets, like bank accounts, wages, and properties. The assets required to pay off your tax liability will be seized. You will know that you're in trouble if you have received notice of an IRS levy.

You can only get the IRS off your back by settling your taxes in full, as well as accrued penalties and interest that's increasing every day. The sooner you pay it off, the better.

You have other options to get the IRS to release a levy when paying off your tax bill is not a possibility:

• The statute of limitations ends before the levy is received
• Convince the IRS that the levy's release will help you pay them
• You've negotiated for an installment deal
• The levy will bring you extreme financial hardship
• The assets seized exceeds the taxes you owe so some of the assets are given back
• Bankruptcy claim
• Submission of an offer in compromise

Seizure of your assets may be avoided in certain ways. Note that these need to be undertaken before notice of the IRS levy is received. Before trying any of the following, check that you're not breaking the law:

• Transfer assets: sell or give away assets under some situations
• Proof that the levy is not economically feasible: if it will cost the IRS more to seize, store, and sell the property than it is worth
• Asset is essential for you to work: you can't perform your work or get to work without the property
• Do not declare the existence or location of your assets: if assets are in other states, etc.
• Keep moveable assets away from home or business vicinity: automobiles, boats, luxury vehicles
• Move your bank accounts: self-protection move
• Rent, don't own your property: cannot take what you do not own
• Put money in retirement accounts: discouraged from taking these
• Use a safety deposit box: hard time finding these

It's important not to let an IRS issue destroy your life. IRS levies are to be avoided at all cost. The more effective you are in dealing with your IRS issues, the better.

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Originally posted 2007-12-29 04:20:39. Republished by Blog Post Promoter

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