How an IRS Tax Levy Affects You

You'll know the IRS is trying to collect the tax debt you need to pay through seizure of your properties if you receive a notice of a tax levy.

These 3 things have to occur before the IRS can take your properties: 1) a Notice of Demand for payment is served; 2) you refuse to pay; 3) thirty days before the levy, you get a Final Notice of Intent to Levy.

Assets that can be taken are:

• Checking and savings accounts
• Your houses and vehicles
• Your income which includes both salary and commissions
• Life insurance
• Accounts receivable, contracts, and securities
• Inheritances
• State income tax refunds
• Social Security benefits
• Veterans retirement pensions
• Interest in partnerships

And the list goes on…

Seizure of your assets and a tax levy will be emotionally and financially stressful to your family, as if IRS problems are not stressful enough.

A tax levy notice needs a response. Here are some options that can release a tax levy, and you can solve IRS issues with an IRS Problem Resolution professional:

• Full payment of taxes, with penalties and interest
• The levy issued after the statute of limitation expired
• If levy is released, taxes can be collected
• An installment agreement is negotiated upon
• It is determined that the levy will result in financial hardship
• The property levied is more than what you need to pay so the seized property will be released
• Declaring bankruptcy
• An Offer in Compromise is submitted

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Originally posted 2007-11-15 08:07:39. Republished by Blog Post Promoter

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