Insight Into The Usage Of Tax Levy

Individuals who commonly owe the IRS a large amount of debt tend to have a concern about the risk of experiencing a tax levy. In fact, tax levies tend to be the one topic that most individuals fear in terms of dealing with the IRS. Generally, this type of action only occurs as a last measure if the individual is not able to pay their debt or has not taken any action to handle the situation more appropriately.

A tax levy happens when the IRS takes control of your properties in order to pay for your debt. By law, the IRS does not have to get any types of approvals for these actions within a court. Likewise, the IRS can take any property as a payment for your debt. This means that property such as a house, car, or anything of actual substantial worth can be used as a payment for your debt.

The IRS is allowed to sell your property in order to gain more money off of it for your debt. Another alternative is that they can take money out of your wages or any earnings as a form of payment also. Whether you are getting money from a loan or even have taken out life insurance, the IRS can control these factors and use them as a method to get back the money that you ultimately owe for taxes.

It should be noted that this does not mean that the IRS is seeking people that can levy for access to funds. Most levies only happen when the individual has gone out of their way to avoid making necessary payments or other factors have happened over time. Firstly, the IRS will contact you and explain that a payment is due for your taxes. If you ignore the initial contact, they will try to contact you again. When it seems that you are purposely ignoring them, they will send a notice that they intend to levy you and inform you about a hearing that you can attend within 30 days. If you do not take any action, you will be levied.

Generally, the IRS will contact you with intent to work with you on payments instead of a tax levy. Individuals who are avoiding making their payments or have refused to pay the IRS have a large chance of experiencing a levy. Of course, there are also situations where you can receive a levy notice but there is no corresponding action. For example, if you receive a notice but you have already made all of your payments, you are not likely to deal with a levy. Likewise, if there has been an error in determining that a levy is necessary, it may also not occur.

Even though receiving a tax levy notice is likely to make you feel a bit stressed out and concerned regarding your properties, there are always actions you can take to prevent the levy from occurring. If you take action to contact the IRS and make your payments or inform them that there has been a mistake, the levy can be prevented.