A tax levy is a legal seizure of your property in order to satisfy a tax debt. While liens are claims used as security for a tax debt, levies involve the actual physical seizure of assets and properties. Failure to pay taxes or arrangements to settle a debt that you owe can result in the seizure of your car, boat, house, bank accounts, rental income, and related assets.
Levies typically occur after the IRS has sent a final notice of Intent To Levy at least 30 days before the scheduled levy is to occur. There are many legal options that you can explore, however to help protect your assets and property.
You may be eligible to qualify for what the IRS calls an offer in compromise. Essentially, this is an agreement between you and the IRS. Certain circumstances have to be established before the IRS will accept this offer, however. These include: actual presence of tax liability, inability of taxpayer to pay off debt in full, and evidence of extreme economic hardship.
Some benefits of an OIC include the opportunity to avoid bankruptcy, and the release of liens and levies by the IRS. Taxpayers are required to remain current on all tax obligations for five years, and must waive their rights to certain tax benefits. There are other applicable conditions as well.
Tax levies are serious and can carry severe penalties and consequences. If you are experiencing tax problems, dont wait until it is too late. Contact a tax professional today. You do have options and the longer you wait the less they are.
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