| A levy is typically the third or fourth response of the | | | | 3. Find out if the IRS has already charged you penalties |
| IRS after a taxpayer has chosen to ignore notices. If a | | | | and interest. If they have, then you may be able to |
| taxpayer receives a notice from the IRS, the IRS | | | | request a penalty abatement. This will reduce almost |
| obviously expects the taxpayer to respond in some | | | | all of the penalties that have been assessed. |
| way. If the taxpayer doesn't respond within the time | | | | 4. Research your past returns to make sure that you |
| allotted, the IRS is left to assume that the taxpayer | | | | actually do owe money to the IRS. |
| has no intention of taking steps to remedy the situation | | | | 5. Find out if you are eligible for an IRS Debt |
| that the IRS is trying to address. | | | | Settlement Program, Installment Agreement, Offer in |
| The first piece of mail a taxpayer will typically receive | | | | Compromise, Currently Not Collectible, or Innocent |
| is called a Notice and Demand for Payment. If the | | | | Spouse. |
| taxpayer doesn't respond to this, the taxpayer will | | | | Once you have been through the previous five steps, |
| receive a Final Notice of Intent to Levy and Notice of | | | | you will be in a position to settle your back taxes with |
| Your Rights to a Hearing, and it's just as serious as it | | | | the IRS. The best thing you can do for yourself is to |
| sounds. | | | | hire a tax attorney. A tax attorney will be able to |
| Remember that if a taxpayer's employer is required to | | | | remove the levy quickly and then continue to assist |
| levy the taxpayer's wages, then that employer | | | | you as you work to resolve the entirety of your debt. |
| essentially has no choice. Since the situation now | | | | Not only will the tax attorney be able to remove the |
| involves not only the taxpayer, but also the taxpayer's | | | | levy, but he or she will be able to represent you as |
| employer, it's in the best interest of the taxpayer to do | | | | you continue your negotiations with the IRS. Tax |
| whatever is necessary to respond to the situation. | | | | attorneys are very familiar with loopholes in the tax |
| Here are five ways to ensure that you avoid a tax | | | | law, as well as the myriad of ways that you can settle. |
| levy. | | | | Tax attorneys also have more experience talking with |
| 1. Make sure you've filed everything you need to file. If | | | | IRS auditors and aren't vulnerable to the intimidation |
| you've receive a notice from the IRS, remember that | | | | techniques used by IRS agents the same way you |
| taxes from all years must be filed in order to negotiate | | | | may be. |
| with them regarding your debt. If you've skipped filing in | | | | But don't wait until you've received a notice from the |
| the past, hire a tax attorney to help you prepare your | | | | IRS to hire a tax attorney. A tax attorney can help you |
| taxes. You can also hire a CPA, but remember that a | | | | arrange your financial situation such that you will never |
| bookkeeper or CPA is not held to the same standards | | | | come under the scrutiny of the IRS, and that can save |
| of confidentiality that a tax attorney is. | | | | you months, even years, of stress. So find a qualified |
| 2. One way to stop a levy is to contact the Office of | | | | tax attorney in your area, take advantage of a free |
| Appeals to file for a Collection Due Process hearing. | | | | consultation to explain your unique situation, and enjoy |
| This is not an option for everyone, so research the | | | | the relief that comes from having a professional |
| specifics of this process to make sure that you are | | | | working for you. |
| eligible. | | | | |