IRS Tax Levy
IRS Tax Levy In Minneapolis, MN
The seizing of property legally done by the IRS until you pay your taxes is known as an IRS Tax Levy. This isn’t a small matter that can be brushed aside because the IRS will continue to seize your assets until your tax liability is fully satisfied. It is important to understand how levies work to ensure you take the right actions to avoid them or to stop the IRS from property seizures.
What’s A Tax Levy and What to Expect
A tax levy is the process in which your assets are taken over by the IRS legally to compensate for your tax. Understanding how and why tax levies are placed can greatly help you avoid them.
IRS Notice of Levy
If you receive the IRS notice of intent of levy, then you should probably prepare yourself because something has definitely gone extremely wrong with your taxes. This only becomes worst if you haven’t taken any action to undo what has happened.
You will normally have a time of 30 days to stop the IRS from seizing your property. In the meantime you can try for an “Offer in Compromise” or “Installment Agreement” to start paying your taxes. This will stop the IRS from seizing your assets.
Stopping an IRS Levy
If you have already received an IRS notice of levy, there are some steps you can take to prevent the IRS from taking the seizing action. Generally you can stop the IRS by paying them the full price, but since you haven’t already paid them, it’s safe to assume you can’t.
There are various methods you can incorporate such as an Offer in Compromise, Installment Agreement, or even an Innocent Spouse Relief (extremely hard to get). Sometimes even the IRS makes mistakes in issuing levies. If you feel like you still aren’t in the red and the levy is unjustified, you can make an official appeal by filing for an appeal. You can occasionally solve the problem by calling the phone number listed on the notice of levy.
Limitations For Collection of Unpaid Taxes Of The IRS
After you receive the final notice, you will have 30 days to stop the IRS by either paying them in full or using another method. If you feel the levy is unjustified, then requesting “Collection Due Process” hearing with the Office of Appeals is the best method.
You can accomplish this by filing a request for a Collection Due Process hearing with the IRS office which will be listed on the IRS tax levy notice you received. You can opt for this when:
- Taxes were paid in full
- When you are already in an installment agreement
- Submitted or already in an offer in compromise
- In case of an error made by the IRS
- If the notice was sent to you during bankruptcy
- The statute of limitations has expired