Tax Levy

Tax Levy

A tax levy is the forced collection mechanism of the IRS. Your assets can be legally seized and sold to settle the owed amount. There are ways to get the IRS levy released. A proper agreement needs to be made with the IRS under which you agree to pay the owed amount in a decided manner. Here are some methods by which a tax levy can be released:

1. Pay the owed tax amount – This is the most preferred way of getting the tax levy released. The IRS will stop the collections and release the levy once you have paid the owed amount. This is the easiest and the quickest method for you and the IRS to stop the tax levy.

2. Let the Statute of Limitations Expire – After a period of 10 years, the IRS is no longer able to collect the taxes from you. But there are certain provisions under which the IRS can extend the time and even implement a permanent tax lien. Once the 10 years time approaches its end, the IRS will try to extend. Make sure you take the advice of a good tax attorney before signing any papers. If you are not able to pay the owed amount in 9 years, it is difficult for them to get the amount from you in the last year.

3. An installment agreement – It is a kind of payment plan. It is an agreement made with the IRS according to which you agree to pay the owed amount in installments. This plan is very strict in nature and you need to pay the monthly installments on time failing which a tax levy can be immediately applied upon you.

4. Partial payment agreement – If you can prove your inability to make the payments according to an installment agreement, the IRS can allow you to make smaller payments. The total amount to be paid under the partial payment agreement may equal less than the original amount owed by you.

5. Offer in Compromise – There are various strict conditions to get this relief. It is very difficult to get your levy released under this relief mechanism.

6. Prove your assets have no value – If you can prove that your assets can’t make up for the owed amount, the IRS may not implement a levy on them. It may be very difficult for you to prove that your assets have no equity.

7. Extreme Financial Hardship – If you can prove that you may not be able to maintain the minimum standard of living for you and your family, the IRS may not implement the levy or release the levy. You have to prove that the levy will create extreme financial hardship for your family and it will be difficult to stay under the roof.

8. Appeal the Levy – If you find that the collectors were unfair to you or didn’t follow the collection procedure, you can file an appeal.

9. File bankruptcy – Filing a bankruptcy is a last option used to get the tax levy released. The bankruptcy settlement is helpful in getting your assets released. It is made possible by court order.

Depending upon your case specifics, Tax Solutions Network can help get the tax levy released. Call today and discuss your case with an IRS Tax Lawyer.