| Hopefully you never have to deal with a tax levy | | | | what is going on. All you know is that the IRS is going |
| imposed by the IRS. Unfortunately, many people do | | | | to take something from you to satisfy your debt. You |
| have to face this reality every year. A tax levy is | | | | would be much better off cooperating with the IRS so |
| pretty simple to understand. This is a legal process in | | | | you are more or less working on your terms. |
| which your property is seized to satisfy tax debt. In | | | | The tax levy is the final and harshest collection |
| other words, if you owe money to the IRS they can | | | | mechanism of the IRS. The reason why it is so harsh |
| use the power of a tax levy to get it back by seizing | | | | is so it will scare people into paying their taxes before |
| your property. Don't get a tax levy confused with a | | | | a levy goes into effect. The IRS will send out a final |
| lien. A lien is used as security for debt, whereas a levy | | | | notice of intent to levy 30 days before they take |
| is the actual process in which your property is seized. | | | | action. In the letter they give the taxpayer their writes |
| What types of properties are in the line of fire when it | | | | and ways they can rectify their situation. The IRS |
| comes to a tax levy? If you do not pay your taxes or | | | | states the taxpayer can either pay in full or settle in |
| owe money, the IRS can come after pretty much | | | | some other way. Most people don't understand what |
| anything that will allow them to get what you owe. This | | | | settle in another way means. People can settle by |
| includes but is not limited to your house, boat, and/or | | | | entering into a payment agreement with the IRS, using |
| car. Property that is held by a third party is also | | | | an offer in compromise or appealing the levy. |
| subject to a tax levy. This can include: your paycheck, | | | | Now that you know more about tax levies you can |
| bank accounts, retirement accounts, life insurance cash | | | | answer this question: am I in a position where I may |
| value, and rental income among others. | | | | face a levy in the near future? If so it is important to |
| As you can see, a tax levy is very serious. If you owe | | | | take action as soon as possible and even considering |
| money to the IRS you do not want to avoid this | | | | a tax professional to be on your side to either prevent |
| because you could end up facing a levy sooner or | | | | the levy or remove the levy. |
| later. In this case, you do not really have a choice as to | | | | |