| This is the IRS's forced collection method where they | | | | situation every so often to see if you can pay off the |
| will sell your possessions in order to fulfill your tax | | | | taxes owed or be put on a normal installment |
| debts. An IRS tax levy is the most lethal of all IRS | | | | agreement. |
| collection methods. With a levy, the IRS can take | | | | - Settle back taxes with an offer in compromise – If |
| your assets in order to cover for the back taxes that | | | | you apply for this form of relief, the IRS will temporarily |
| are outstanding. Getting an IRS levy released means | | | | pause the collections until the IRS has decided about |
| you will need to come to an agreement with the IRS | | | | your case. Do not apply if you don’t think you will |
| and they will agree to stop taking collection actions | | | | qualify, this will be considered fraud and will come with |
| against you. Below are 10 ways you can legally | | | | harsh punishments. This is a difficult type of relief to |
| release a tax levy with the IRS. | | | | receive from the IRS, but if accepted, the levy will be |
| - Pay debt amount in full, including penalties and interest | | | | released. The IRS only allows individuals to apply for |
| – Try to think of other ways you can pay if you | | | | this type of relief if they fall into one of three |
| don’t have the money. Some options you can | | | | categories with strict requirements. |
| consider are; take out a home equity loan, friends and | | | | - Prove your assets have no equity – When items |
| family, have a yard sale, or see if you can sell some | | | | the IRS is trying to levy have no value in them, you |
| stuff on Ebay. | | | | must show to the IRS that there would be no point for |
| - Avoid the IRS until the Statute of Limitations Expires | | | | them to levy them because they will gain nothing from |
| – The IRS has 10 years to collect taxes from the | | | | it and it will not pay anything towards you back taxes |
| initial date of assessment the Internal Revenue Service | | | | owed. |
| has ten years to collect on taxes since the day they | | | | - Prove to the IRS that the Levy doesn’t allow you |
| were originally assessed. Once the ten year period is | | | | to meet basic minimum required expenses – If you |
| up, the IRS no longer pursue you for collections and | | | | can show and prove to the IRS that the levy creates |
| the levy will be lifted. Remember, if the IRS is hot on | | | | economic hardship and it greatly affects your ability |
| your case and they have not collected after 9 years, | | | | from earning enough to maintain a roof over your |
| they most likely will try to get you to extend the | | | | head or your families head, it is likely the IRS will lift the |
| statute of limitations. They may not tell you that this is | | | | levy. If the levy hurts your future ability to earn money |
| what they are doing, but it is, so be careful what you | | | | and you prove this to the IRS, the levy will be |
| sign if a lot of time has already passed. If you haven't | | | | removed. |
| paid the amount owed in 9 years, it is extremely | | | | - Post a Bond – If you post a bond, a levy will no |
| unlikely they will be able to collect from you in the last | | | | longer be in effect. If a levy is in place, and you cannot |
| year. Especially since by this time you can be | | | | pay your taxes, it is highly unlikely you will qualify for a |
| considered an expert in avoiding the IRS. | | | | bond. If you do qualify for a bond, you may be better |
| - Monthly payments through an installment agreement | | | | of paying the tax amount owed in full. |
| – This is one of the easiest settlement methods to | | | | - Appeal the Levy –You have the right to appeal |
| release a tax levy. With an installment agreement you | | | | the levy and have it lifted if wrong procedures were |
| will be able to pay off your back taxes owed in | | | | taken. Don’t use this tactic to stall. |
| incremental monthly installments. It is important to make | | | | Getting a levy lifted can be complex. It is suggested |
| timely payments on this once it is in place or the IRS | | | | that you use a tax professional to help you with |
| can re-enforce the tax levy. | | | | required filings. Some of these methods above can be |
| - Partial payment installment agreement – If you | | | | unsafe to do on your own because they can be |
| can’t make the minimum required payments for the | | | | considered fraud by trying to delay IRS collections if |
| installment agreement the IRS will consider you for a | | | | not done properly or in the right circumstances. An IRS |
| partial payment option. With this option you will be able | | | | levy can be financially devastating, the help of a tax |
| to make smaller installment payments and may | | | | relief professional can most likely save you much more |
| actually never end up paying off the entire amount of | | | | money than their cost, while eliminating a lot of stress. |
| back taxes owed. The IRS will review your financial | | | | |