A tax levy is a means for the IRS to get your property should you not be able to pay your back taxes and other fees within the due date. By learning the details about levies and how to stop them, you can retain possession of your property.
Here are techniques for stopping the IRS levy:
- Keep the IRS updated with relevant changes in your situation. If you move to a new location without informing the IRS, they may send a notice of final intent to levy to the wrong address and act without your knowledge. Make sure to fill out the proper form for any changes which may affect your tax status.
- Settle your tax debt. This is the simplest way to stop a levy, though it can be difficult to raise the lump sum. The IRS gives taxpayers a 30-day notice to respond to the threat of a levy.
- Hire a tax professional. A tax expert can help you contact the necessary IRS agents, reduce the tax debt and guide you past the rules and regulations of a tax levy. You may want to shop around for a tax professional in your vicinity within your financial means. Use the Web to search for experts, research on their backgrounds and then conduct interviews about their experiences and fees.
- Offer in compromise. By offering evidence that you are financially unable to pay your entire tax debt, the IRS may consider letting you pay much less. While this is a rare occurrence that is full of requirements, a tax professional can successfully present your records and argue in favor for a reduced payment.
- Wait for the tax lien to expire. A tax lien has a required expiration date, after which the IRS no longer has the right to seize your property. This solution has its dangers, however, as the IRS may act before the expiration date or simply extend it.
- Negotiate for an installment agreement. This is a way to pay your debt in affordable amounts for over a long period of time. You will have to provide the required documentation which proves your cannot pay the amount in full, including the relevant bank statement, income statements and regular expenses.
- Appeal the rejection of a compromise. Should the IRS decline any compromises or installment agreement, you can file an appeal with the appeal office. Levies cannot be imposed during an appeal process, a period of time which you should use to formulate your next strategy.
- Communicate with your bank. A bank has to cooperate with the IRS should they perform a bank garnishment, but will suspend such a procedure if the levy has been stopped. Find out the name and contact information of the manager of your bank and then transmit this to the proper IRS agent. Follow up the situation with the manager until he confirms the suspension of the levy.
The best solution is to avoid being in danger of a levy in the first place, by paying your dues on time. If you fail to do so, the next best step is to act promptly in order to anticipate the IRS’s attempt to seize your property.