Tax Levy Frequently Asked Questions (FAQs)
Can a Tax Levy be stopped?
- A tax levy can be stopped. When the IRS sends their final notice of intent to levy they are giving 30 days for the taxpayer to resolve their problem before the begin to levy. The IRS does not want to levy any taxpayer’s assets, it is a last resort effort to collect taxes from the uncooperative taxpayers. Some ways to stop the levy are by appealing the levy, pay the IRS in full, enter into an installment agreement, or to file for an offer in compromise.
What assets can the IRS take through a levy?
- The IRS can take almost anything of value from you that can be used to satisfy tax debt. There is a small list of things they cannot take, but most things they can legally take. The most common assets they seize are wages, vendor payments due to you, money from bank accounts, commissions, employee travel advances, SSA benefits, property, rights to property, and anything else of value that can satisfy the tax liability.
What can’t the IRS take through a tax levy?
- A few things the IRS cannot take are the following: welfare, SSI, disability payments, court ordered child support, school books, clothing, livestock if farmer, tools used for a job, undelivered mail, workers compensation benefits and other exemptions that are related to the annual cost of living.
What if I don’t agree with the notice of intent to levy?
- The IRS does make mistakes sometimes and will misplace payments or get paperwork mixed up, so it is possible you received a levy by accident. Or even if you don’t think they went through the levy process the right way etc, you have a right to appeal the levy. It is important that you both call the notice listed on the levy and file for an appeal.
Can a tax levy be released?
- Yes you can release a tax levy. The IRS requires you to get back into compliance with your taxes before they stop the levy. You can release the levy by paying in full, settling through an offer in compromise, setting up a payment plan with the IRS, having the statute of limitations expire on the taxes that are due or by getting declared uncollectible.
How can I avoid a Levy?
- The best way to avoid a tax levy is by staying in full compliance with IRS taxes and taking immediate action to any notices the IRS may send you. If you cannot afford to pay your taxes it is important to let the IRS know and arrange some other form of tax debt settlement.
What is the difference between a tax levy and a tax lien?
- A tax lien is only the governments “invisible” claim on the property that is owned by the taxpayer, but a tax levy is the actual seizure of the assets owned by a taxpayer. With a levy the IRS can take money from bank accounts, garnish wages, or even seize physical property owned by the taxpayer.
Are there tax professionals that can help with a tax levy?
- Yes, there are many tax professionals out there that specialize in finding solutions for taxpayers that are in trouble. The IRS’s complexity has spawned many great companies to hire trained professionals that have lots of experience in making the various different forms of tax filings required when settling tax debt. Find more information on how our tax levy services work.