The IRS has the ability to seize your property through a tax levy. Hopefully you never have to deal with this situation, but if you do there are some solutions to keep in mind. The more you learn about tax levy relief solutions the better off you will be. There are definitely some options to consider, all of which need to be thought through from start to finish.
If you are facing a tax levy it is important to stop the process before it goes too far. The sooner you begin to search for a solution the better off you are going to be.
Below are four of the best ways to stop a tax levy:
- Pay the IRS as soon as possible. This is the number one way to stop a tax levy. If you pay the IRS there is no reason for them to levy your bank account or wages. Instead, your account will be back in good standing and you won't have anything to worry about in this regard. Even though this is often times the most difficult way to stop a tax levy, it is also the method that works the best.
- Offer in compromise. Have you given any thought to stopping a tax levy through an offer in compromise? This is known as settling your tax debt. In other words, the IRS will let you pay less than your total tax liability. The main issue with an offer in compromise is that the IRS rarely accepts them. A low percentage of offer in compromise filings are actually accepted by the IRS. It is important that you do your research and find out if you are a good candidate to receive this type of relief prior to filing. If you are looking for a company to help you be very weary. If they promise you that they can get you this type of filing it is a good idea to look for another company since no company can promise this type of filing will be accepted with their help.
- Can the lien expire before a levy is issued? While this is a possibility, it is not something that you want to rely on. Remember this: the IRS can extend the tax levy at anytime, which will once again put you in a bad situation. Out of all the tax levy relief solutions this is the one that you want to avoid. If it happens you should be happy. That being said, you cannot afford to rely on this method because it is far from full proof.
- Installment agreement. If you agree to a payment plan with the IRS they will generally leave you alone and stop pursuing a tax levy. With this, you are agreeing to pay a set amount of money every month until your debt is gone. As long as you keep up to date with your payments you don't have to worry about the IRS levying your bank accounts or wages.
All four of these tax levy relief solutions should be considered. Once you find one that works for you, stay on course and follow through with it. If you are having a difficult time deciding which method to take advantage of or which steps to take next, consider hiring a tax professional.
A tax levy is a serious situation. Be sure to rely on one of the solutions above.