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How to avoid or resolve a tax levy

If you don't pay your taxes or set up a plan to settle your debt, the IRS can issue a tax levy. This is a legal seizure of your property in order to pay off the tax you owe. When it comes to taxes, you should never neglect notices from the IRS. Taxes are a serious matter, but there are steps you can take to ensure that your property will not be taken.

Here is how to avoid a tax levy, or what to do if a tax levy has already been brought against you.

1. Don't ignore the IRS. Pay your taxes right away.

Always look at notices you receive from the IRS and resolve them as quickly as possible. A levy is only brought against you if you don't pay your taxes in time. If you don't pay your taxes, you will first receive a Notice and Demand for Payment. If you refuse to pay, the IRS will send you a final notice stating that your property will be seized if you don't respond or pay off the bill in 30 days. It is important to resolve the payment before it reaches this point.

2. Inform the IRS if you cannot pay a tax bill.

If you receive a demand of payment and do not have the financial means to pay the tax bill, tell the IRS immediately. You cannot receive a levy if it creates a financial hardship. You will still have to pay off the tax bill, but you have other options, such as setting up a payment plan or getting an extension on when the payment is due. You also have the right to be represented so it may be wise to ask an attorney about your situation if you are dealing with financial hardship in the face of tax debt.

Never ignore a bill from the IRS. Even if you cannot pay immediately, contact the IRS about it.

3. If your property has already been seized, request a release.

If you pay your taxes or have an alternative payment method set up in the case of financial hardship, you will not have to worry about a tax levy. But if your property has already been seized by the IRS, you can request a seizure release for these reasons. If the IRS denies your request, you can make an appeal to have your property returned to you.

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Law Offices of Charles R. Frazier
5258 Murfreesboro Road #B
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