When the IRS levies your property, you may wake up to your bank accounts empty, your assets gone, and your wages being garnished. When dealing with the IRS, there’s no “affordable payment plan”. They want to get their money back in full as quickly as possible.
When will the IRS Issue a Levy?
The IRS may choose to issue a levy if you have unpaid taxes and have not arranged to make payments for those debts. You will be sent a bill or ‘Notice and Demand for Payment’ to start. This notice starts the process of collecting the taxes that you owe or they believe you owe. After a series of letters and non-payment, they will then send you a ‘Final Notice of Balance’, as well as a ‘Notice of Your Right to A Hearing’ 30 days prior to executing the levy. If you ignore these communications for the IRS, then a tax levy may be in your future. When the IRS starts taking assets and garnishing your wages, they will not stop until the entirety of your debt is paid. They can even take assets that you own and auction them off to pay back your debts.
How Can I Protect My Assets from an IRS Levy?
Being issued a levy is not a situation that you want to find yourself in. However, if you are in the situation, you want to seek out ways to protect your money and assets. At BFG Tax Help in Richardson, Texas, we have a team of individuals that can help protect your assets and money from being levied. Often times, we can get some of the levies released to help you get back to living your life free from the burden of tax debt.
When will the IRS Release a Levy?
When you request the release of a levy, the IRS may approve or deny your request. If the levy is causing economic hardship, the IRS may release the levy. However, if they deny your request for release, you still have the right to appeal. If you are looking to request the release of a levy, it’s best to get a tax professional involved to ensure that you get the best results possible. The IRS is required to release the levy if:
- They determine that you have paid the amount that you owe or proven that you do owe it.
- The collection period ended before they issued the levy.
- The release of the levy will help you pay taxes.
- You enter an Installment Agreement that does not allow for the levy.
- They find that the levy creates economic hardship, keeping you from meeting basic living needs.
- The value of the asset is more than what you owe, and the release would not affect the collection of the amount that is owed.
- You enter into an alternative resolution.
If the IRS releases a levy, this does not mean that the taxes owed do not have to be paid. You still have to resolve your tax debt to avoid the levy being reissued.
Why BFG Tax Help?
At BFG Tax Help, we help with a variety of financial needs, but our specialty is assisting with taxes. We can help you prepare ad file your taxes, settle your debt, and prevent from major issues with the IRS. Whether you’re an individual or business, you can trust us to with all of your bookkeeping, tax, and other financial needs. Don’t let the IRS take over your life. Contact us today to ensure you protect your assets!