Failing to pay the IRS for too long may eventually lead to an unwelcome surprise in the mail; one of them may be a notice of intent to levy your current assets. Naturally, receiving this kind of news can create tension and worry. Tax levies are one of the most severe consequences state governments and the IRS can perform. It involves one of these entities seizing a taxpayer’s assets in order to pay off tax debts. This penalty is different from a tax lien, as a lien involves a state government or the IRS claiming assets to repay back taxes.
When this type of issue arises, you may feel trapped and powerless. However, there are ways to prevent the levy from progressing – namely in the form of filing an appeal. If this option appeals to you, you’ll need assistance from a seasoned tax professional who can help you successfully navigate the appeals process.
Carrying out a tax levy is not a simple or immediate process. This gives taxpayers a slight advantage with settling the issue before it can progress. Before the tax levy can be completed, the IRS must go through several steps, including:
From there, the taxpayer has the immediate option to either pay off the debt in full or set up alternative arrangements. It is only if they fail to take action that the IRS sends a notification of Intent to Levy. Afterward, the taxpayer receives 30 days to file an appeal and schedule a hearing. It’s important to act as quickly as possible within this 30-day window.
The IRS is notoriously forceful when it comes to collecting tax debts. This sentiment applies tenfold to state governments. Fortunately, state governments are required to follow the same process of providing notice of Intent to Levy as well as the taxpayer’s right to request a hearing. This gives taxpayers a fighting chance to resolve the issue before it can escalate further.
You must act as soon as you receive an Intent to Levy notice from your state government or the IRS. The Rocket Tax Relief team is here and ready to help you retain your possessions. To learn how we can help, give us a call at 800-542-4718 or complete our online form. We’ll get in touch with you as soon as possible. We also offer 15-minute tax consultations at no cost.