A tax levy is a legal seizure of your property in order to satisfy a tax debt. According to the IRS, if you fail to pay your taxes or to make arrangements on how to settle your debt, the government may take and sell any real or personal property that you own or have an interest in.
A levy may be issued by the IRS after three conditions are met. First, the IRS will assess a tax and send you a Notice and Demand for Payment. The second condition is that you neglected or refused to pay the tax. Finally, the IRS issued a Final Notice of Intent to Levy and informed you of your right to a hearing at least thirty days before the levy. This notice could be sent to your home, your place of business, or your last known address by registered or certified mail.
In order to release a tax levy, you must either challenge the levy within thirty days of the final notice or set up a proper resolution for paying back your tax debt. Challenges to the levy include showing how the levy will create an immediate economic hardship. Being in bankruptcy at the time the levy was noticed can also create a stay of collections. Additionally, a levy might be released if the taxpayer can prove that the IRS committed a procedural error in an assessment.
A proper resolution for paying back your tax debt could include an installment plan whereby you make regular payments to the IRS until the debt is satisfied. For more information about your options for tax relief, contact us today. For More Information Click Here.
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