IRS Levy Notice — Here Is How to Handle in Four Ways

levy noticehow to handle a levy notice

The IRS is not someone you want to mess with when it comes to debt repayment. They are the most unforgiving creditor in terms of debt collection. If you owe money to the IRS and fail to pay or reach a settlement with them, they may issue a levy notice against you.

What Does an IRS Levy Notice Mean?

A levy notice is a letter the IRS sends to notify taxpayers that they will start employing levy procedures to collect the debt, including wage garnishment, property seizures, and bank account levy.

The IRS typically mails levy notices. After receiving the letter, you will have thirty days to settle your tax liability or negotiate payment arrangements. The IRS can begin the levy actions if you do not make these agreements within this time frame. 

Receiving an IRS levy notice can pose many problems for taxpayers. Understanding how to properly respond to the notice is crucial to avoid further complications and tax penalties.

What To Do If You Receive a Levy Notice From the IRS

Contact a Tax Relief Firm

The IRS is known for getting people to answer questions that could be used against them. If you receive an IRS levy notice, you should not represent yourself. Doing so could get you into further trouble. Find someone who can help you! Your best bet is to find a reputable tax resolution specialist since average tax preparers don’t know how to deal with these situations.

The IRS is not your ally. They are the most ruthless debt collectors on the planet. They exist merely to assess and collect taxes and will do anything to get their money back if they believe you have it. In addition, they will file a notice of federal tax lien. Therefore, if you have a pending real estate transaction, any earnings from the sale of the property in excess of the mortgage amount will be confiscated by the IRS to pay off your tax debt. An expert in tax resolution will shield your assets and income from the IRS’s long arm.

Next Steps

The next thing you should do is compile all of your financial records and give us a call.  We will help you put together your case to the IRS and speak on your behalf to let them know that an IRS levy will place you and your family in a difficult position. The IRS will release the levy if you can provide documentation demonstrating that the levy will cause you financial hardship. However, this is just a temporary solution. You will still have to pay the IRS the rest of what you owe. Once we get the levy lifted, the IRS can no longer take money out of your paycheck. Then, we will work with you to figure out a strategy to resolve your tax debt.

Make Payment Arrangements

We can help you work out a payment plan with the IRS to settle the debt. The levy notice will be lifted if you are accepted into an IRS installment plan.

Get an Offer In Compromise

Most of the time, you may resolve your tax debt for less than what you actually owe. This refers to as an offer in compromise. An OIC allows you to settle your tax liability for a lower amount than the full amount you owe.

It may be a viable alternative if you cannot pay your whole tax due through payments or if doing so would cause financial hardship. To determine if you qualify for an offer in compromise, the IRS will examine your ability to pay, income, expenses, and assets.

The IRS normally approves an offer in compromise when the proposed amount showcases the maximum amount they can anticipate collecting within a reasonable timeframe. If you decide to proceed with an offer in compromise, contact a tax resolution professional to assist you in preparing, submitting, and negotiating an offer. Always verify their credentials first, as you may want the best to represent you before the IRS. 

Let the Pro Handle Your IRS Levy Notice

The IRS isn’t for wimps. They can be a pain to deal with, but if you ever need help with dealing with a levy notice or need tax resolution services to resolve issues with the IRS permanently, our firm is here to help! We will investigate your case and provide optimal solutions for your unique situation. Contact one of our tax resolution specialists today!

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