4 Ways To Remove a IRS Levy
Posted by Segal, Cohen & Landis, LLP on October 22nd, 2019
The IRS compromises of a number of activities to collect debts that taxpayers owe to it. Among all of these, tax levies are many times the most difficult with which to cope.When the IRS levies someone’s property, it assumes financial ownership of the asset until the tax debt is paid in full. However, you could stop tax levy by following few tactics and these are as follows:
1. Paying the tax debt in full
The best and the most effective way to get a tax levy released is to pay the owed IRS amount in full. If you have the financial means, you should pay the obligation in full, and make sure your account with the IRS has a zero balance. However, paying off a tax debt in full is not easy to do for most of us when the amount is way to high. It is always better to pay tax levy regularly without getting it accumulated.
2. Appeal the Levy
IRS gives a time frame of 30 days from the time it notifies you of its intent to levy an asset to make a formal appeal. The appeal temporarily stops the levy from being enacted until a decision is made on your tax situation. To file a formal appeal, submit the IRS form 9423, which can be found on IRS.gov. The appeal could possibly uncover irregularities in the tax debt collection process that would compel the IRS to reverse its intent to levy your assets.
3. Request an Installment Agreement
Since it is quite impractical for many to give away huge amount of levy, for that matter you can appeal for an installment. You could have the levy released quickly by requesting an installment agreement with which to pay off your debt. An installment agreement lets you make regular monthly payments on the obligation. The payments are based on how much money you make, which ensures they are affordable and practical.
4. Make an Offer in Compromise
When you cannot realistically pay off your full tax debt, you may be able to settle it with an Offer in Compromise. An OIC lets you resolve your debt for less than what you really owe. The IRS forgives the remaining portion of the debt if it accepts your OIC. Make sure that the offer is realistic and reflect the value of your current income and assets. Once the OIC is accepted, you have to pay a lower amount and bring your IRS account to a zero balance.
Fighting IRS tax levy will be easier if you know these tactics.
