A Tax Levy Never Comes Without Warning

If your tax return has been audited and the IRS finds that you owe the government, you will receive the equivalent of a “shot across the bow” -- a formal notice and demand for payment. If you ignore the subsequent final warning, the IRS brings out its “big gun,” the tax levy.

 Unlike its homophone levee, an embankment built to contain flooding, an IRS levy can inundate your bank, your employer and others who control funds on your behalf. The IRS simply seizes or freezes your assets -- cash and other property -- in payment for back taxes.

 Your bank manager and employer have no choice but to comply. Your bank must freeze your accounts, and your employer must start deducting from your pay.

 So the best advice when it comes to avoiding a levy is this: read the IRS notice carefully and do not procrastinate. The notice will specifically tell you that the IRS intends to issue a levy against your property or rights to the property because you have a balance due on your tax. It will also indicate the amount of the payment due, when it is due along with payment options. 

 At this point, the IRS will immediately begin searching for other assets you have -- retirement accounts, business accounts receivable, stock dividends, cash loan value on your life insurance, to name a few.

 Before that final notice comes in and time runs out, you should consider getting some professional tax assistance. If you’re facing a tax levy or lien, you can get help and expert representation at Optima Tax Relief.  \
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