What is an IRS tax levy, and what can it do to your financial health? A tax levy is a legal seizure of your assets for nonpayment of taxes. The levy gives the IRS the power to seize and sell off your property, freeze your bank accounts and make a claim on your paycheck. A levy differs from a lien, in that the latter is a legal claim on your property that prevents you from selling it without giving the IRS its cut first.
So as far as your financial condition is concerned, a levy actually subtracts from your net worth. The tax people take over your property and sell it out from under you. Levies even extend to any cash value of an active life insurance policy, giving credence to the claim that when it comes to tax delinquency the IRS may not own your soul, but it has a big claim on your body.
If the IRS audits your tax return and determines that you owe more, you will receive an official Notice and Demand for Payment. Ignore the notice or refuse to pay the bill and you can expect another formal notice with the dauntingly long title Final Notice of Intent to Levy and Notice of Your Right to A Hearing (short title: levy notice).
You should at this point actually take notice, because you have 30 days before the IRS starts coming after your property. There are ways to get a tax levy lifted, and we at Optima Tax Relief can help. Check us out and get a free assessment from one of our senior tax experts. For More Information Click Here.
No comments:
Post a Comment