When the IRS Means Business with Tax Levy Notification
If you have received IRS notification regarding a tax levy, it is important to take immediate action. Wiggam Law tax attorneys can assist you in resolving the tax debt.
What Is a Tax Levy?
A levy is a collections process used by the IRS to resolve tax debt. When a levy is issued, the IRS may seize any of the following as payment:
- Property Such as Real Estate, Vehicles, or Boats
- Bank Accounts
- Retirement Income
- Social Security Benefits
- Future Federal or State Tax Refunds
One-Time vs. Continuous Levy
Depending on the amount owed, the IRS may issue a continuous levy or a one-time levy to pay the tax bill.
A one-time levy is most often a bank levy, which allows the IRS to freeze the balance in your bank account at the time the levy order is processed by the bank.
The most common type of a continuous levy is wage garnishment. The IRS can continue to subtract money from every paycheck until your tax bill is paid.
What Happens When You Get a Tax Levy?
The IRS is required to contact you several times to give you the opportunity to pay their tax bill, or contact the IRS to develop a payment plan if unable to pay the tax bill.
After the IRS has sent a number of notifications without a response from you, they send the Final Notice of Intent to Levy. This allows them to levy other assets if no action is taken by you within 30 days.
At this point, you must take action to file for a Request Collection Due Process Hearing. If filed within 30 days of receiving the Final Notice of Intent to Levy, the IRS may not issue any levies.
If you wait until after the 30 days, the Wiggam Law tax professionals have a number of other strategies to help you avoid a levy.
Levy vs. Lien
According to the IRS, “A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.”
Wiggam Law tax attorneys are equipped to help guide you through both lien and levy situations.
How to Release a Tax Levy?
The best way to address a levy is to directly communicate with the IRS. The tax professionals at Wiggam Law will represent and guide you through the entire tax levy process until there is a solution, including the levy release.
There are multiple ways to have the IRS release a levy:
- Pay the Tax Bill in Full and Stay Current With Tax Filings
- Set Up a Payment Plan With the IRS to Pay Off the Tax Bill
- Negotiate Currently Not Collectible Status with the IRS
- Submit an Offer in Compromise
- File a Request for Innocent Spouse Relief
Wiggam Law tax attorneys have the knowledge and expertise to handle all tax bills and levy cases.
Contact Our Attorneys in Atlanta, GA
If you do not have the means to pay any portion of your tax bill while also meeting your living expenses, a tax attorney can help you review your options for tax levies.
At Wiggam Law, our team of experienced tax lawyers can help you evaluate all your choices and represent you. Give us a call today at (404) 233-9800 to get started.