How to stop an IRS Levy - image of house with chain and padlock - tax levy - SFS Tax Problem Solutions

How To Stop an IRS Levy

How To Stop an IRS Levy – Of all the creditors or companies you might owe money to, the Internal Revenue Service can be the least forgiving about the money you owe them. If you don’t pay your taxes, the IRS will levy and take possession of your property, including cash accounts, wages, and real and personal property. The IRS will sell non-liquid assets to raise funds to satisfy the debt you owe.

If you’ve received a levy notice from the IRS, it’s time to ACT IMMEDIATELY t lear how to stop an IRS levy. Our firm may be able to get your levy released the same day, but you must call now for a confidential consultation. 877-355-8010 or contact us online.

Unless you don’t open your mail or you moved without leaving a forwarding address, you probably won’t be shocked by an IRS levy. You’ll receive a “Notice and Demand for Payment” of your tax debt well in advance of any action taken. 

If you ignore this notice, the IRS will follow up by sending you a “Final Notice of Intent to Levy and Notice of Your Rights to a Hearing.” Now the clock begins ticking. 

You have 30 days to pay your tax debt or contact the IRS to stop the levy. Even if you’re unaware of the levy proceedings, your employer has a limited amount of time to warn you if he notices that the IRS plans to take the bulk (up to 90%) of your paychecks. Your employer doesn’t have to begin sending your earnings to the IRS until the next pay period. With any luck, your employer will let you know what’s going on within this time frame so that you can take action. 

If the IRS levies your bank account, the bank will freeze the money in the account and remit it to the IRS after 21 days. Therefore, you must act quickly to try to have the funds released upon receiving a notice that the IRS has levied your bank account. 

Contact A Tax Relief Firm

Now is not the time to do it alone. If you call the IRS, they will often trick you into giving incriminating answers, further distancing you from the tax relief you so desperately need. 

The IRS is NOT your friend. They are there to collect what they believe you owe in taxes. Contact a professional experienced in tax resolution to help you with your case. Would you go to court without a lawyer? Well, it’s the same with the IRS. You need professional representation from an Enrolled Agent, CPA, or tax attorney who is also a tax resolution specialist.

Establish Hardship 

If the IRS intends to levy your paycheck or Social Security benefits and you can’t come close to making ends meet on what’s left, the IRS wants you to contact them. The contact phone number should appear on the levy notice. DO NOT CALL THE IRS.

The law requires that the IRS leave you with the total of your tax exemptions for the year plus your standard deduction divided by 52 if you’re paid weekly. 

Gather your documents and call us. We’ll help make the case to the IRS and explain that the levy will cause hardship for you and your family. You’ll have to provide documented evidence, but the IRS will release the levy if you do. This doesn’t mean you no longer owe the tax. It just means that the IRS will leave your earnings and income alone and work with you to figure out another way to satisfy the debt. 

Make Payment Arrangements 

We can also ask for payment terms for your tax debt, even if the levy won’t cripple you financially. If you enter into an installment agreement, the IRS will typically release the levy unless the notice you received specifically states otherwise. 

You Can “Settle” For Less Than You Owe

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability or do so creates a financial hardship. The IRS considers your unique set of facts and circumstances:

  • Ability to pay;
  • Income;
  • Expenses; and
  • Asset equity.

The IRS will generally approve an offer in compromise when the amount offered represents the most they can expect to collect within a reasonable period of time. It’s best to explore all other payment options before submitting an offer in compromise, as the Offer in Compromise program is not for everyone. Make sure you hire a tax professional to help you file an offer, and be sure to check his or her qualifications.

The IRS doesn’t want to destroy you financially. They just want the money they are owed. If you can make an arrangement to pay or prove that you don’t owe the tax, or if you legitimately cannot pay it at this time, you may be able to make the levy go away. 

Our firm specializes in tax resolution. Even if you have years of unfiled tax returns, we can help! If you want a Certified Tax Resolution Specialist who knows how to navigate the IRS maze, reach out to our firm, and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem and how to stop an IRS levy. Contact us today.