When the Internal Revenue Services (IRS) engages in the collection of tax debt, it almost always starts with the taxpayer’s wages and bank accounts.
The taxpayer’s known financial institutions and employers will receive a Notice of Levy. Generally, the bank will freeze any accounts for 21 days from the date of the levy before it can turn over funds to the IRS.
This allows the taxpayer, the bank, and the IRS an opportunity to come up with a resolution before the taxpayer’s funds are claimed by the government.
Unlike creditors, the IRS has an unprecedented amount of power that many taxpayers fail to realize until it is too late. A tax levy can be financially devastating and requires immediate action. Resolving the issue with a skilled Washington DC tax levy lawyer who understands the levy process and can provide solutions to prevent the seizure of assets may be the answer. Reach out to a seasoned tax resolution attorney today.
According to IRS Code § 6331, certain conditions must be met prior to the authorization of a levy. Some of these steps include:
Thus, there is a specific process the IRS must follow prior to garnishing wages or seizing property. Taxpayers that willingly engage in this process may prevent the seizure of property.
Receiving IRS Notice CP90, which is the final notice from the IRS regarding the intent to levy and the taxpayer’s right to a hearing, can be a harrowing experience for anyone. It is certainly a difficult situation that can cause significant harm to one’s life, but it is not hopeless. However, failing to take action when receiving said notice will likely result in the loss or seizure of assets to satisfy any or all of one’s unpaid taxes.
The obvious, most candid way to halt an IRS tax levy is to simply pay off the debt. Unfortunately, paying the entire debt upfront may not be in the cards for a variety of reasons.
Taxpayers do have other options to stop the levy, such as an online payment plan. If the individual has filed all required tax forms and owes under $50,000, a payment plan can stop the IRS from seizing one’s property.
Another alternative is what is known as an installment plan. This route requires the taxpayer to propose a payment plan to the IRS. Upon evaluation, the IRS will render a decision to accept or reject based on one’s financial circumstances and history. Note that an installment plan should be based on one’s ability to pay. Taxes and fees may apply. Reach out to a DC IRS tax levy lawyer to learn more about taxpayer options.
An IRS tax levy notice can be devastating. The potential of a levy can have a profound effect on anyone, with consequences such as the seizure of property, bank accounts, or garnishment of wages.
There is no substitute for an experienced DC IRS tax lawyer when it comes to tax levies and tax debt. Safeguarding one’s interests in collection matters with the IRS should always be a priority. Although these difficulties never go away by themselves, every tax problem has a solution. For more information, call today.
