Are looking for information and a solution on how to stop an IRS tax levy on your paycheck in Arizona or anywhere in the United States the best IRS help team at Flat Fee Tax Service, Inc will help.
An IRS tax levy is one of the harshest collection methods used by the IRS and taxing authorities. This is where the IRS will legally seize your assets to pay off your back income taxes.
Normally, you won’t be surprised by an IRS tax levy due to the IRS going through certain steps before they issue an IRS tax levy on your paycheck and/or bank accounts.
You haven’t paid your income tax bill and you have not made another arrangement to pay.
A final IRS notice is sent by the IRS with an intent to levy and a notice of your right to a hearing. The levy will begin within 30 days of the notice. The IRS is required by law to notify you of the levy within 30 days before beginning. This became the law as part of the 1998 IRS Restructuring and Reform Act.
An IRS Wage Garnishment - IRS Wage Levy
With a wage garnishment, the IRS will contact your employer and demand that the owner or HR department take out a certain percentage of your pay for your unpaid income taxes.
IRS Bank Levy
An IRS levy on your bank is more problematic. Know this, even with intervention by our IRS Tax Attorney, you may not get back 100% of the money seized in your bank account.
IRS Property Seizure
The IRS may seize almost any form of asset to sell to cover your owed taxes. They can seize items such as your house, car, or boat.
An IRS 1099 Levy
Other IRS Asset Seizures
The tax levies aren’t limited to what is mentioned above. The IRS can also levy your licenses, rental income, commissions, retirement accounts, accounts receivable, dividends, or life insurance.
If your passport is important to you, this may present a major problem for you. The IRS may request that the state department deny or revoke your passport if you owe more than $50,000.
The IRS will normally only use a levy seizure as a last resort option and would prefer to use another arrangement to resolve your owed taxes. In order to stop an IRS levy, it takes swift action by you or a tax professional working for you. There are different types of arrangements that can stop a levy. Below are some options.
An IRS Payment Plan (IRS Installment Agreement)
IRS payment plans are more complicated than you may think. The IRS has many rules regarding what you should pay. The amount of your debt is a factor. The amount of money that you have left after "allowable expenses" are factored in is part of the solution.
Submit an Offer in Compromise - IRS Settlement
This is an agreement to pay less than what is actually owed. This option is for those who are struggling financially and may qualify.
Prove Financial Hardship
If you can prove that an IRS levy will create a financial hardship, then this may stop the levy against you. This doesn’t mean that you don’t need to pay what is owed, but it will stop collection actions.
File an IRS Appeal (Have an IRS Tax Professional Do This)
You can appeal the levy if taxes were paid before the notice was sent. You can also appeal if you were in bankruptcy before the notice, there was an error in the assessment, you want to make spousal defense, or want to talk about other options. There may be times that you can appeal because you weren’t able to dispute tax liability, or the statute of limitations has expired for the debt.