Tax Relief - What You Should Know About Tax Levies

by Rob Daniel

A tax levy is when the IRS seizes either your wages or your bank account after you have proven unable to pay your outstanding back taxes. In addition, a tax levy is imposed after you've been given many chances to pay and many warnings about the debt. "Seizing" essentially means that they put your bank account or your wages on hold, coordinating with your bank or your employer, so that you cannot access the money in either account. The IRS has the power to impose a levy even without the government being aware of it.

Horrible, yes; but, note that you'll be given chances to pay your tax delinquencies and many reminders to ensure that you remember to settle your tax debt before the levy is implemented. Think of the levy as a last resort.

Also, the IRS won't impose the levy right away. They'll give you advance notice - thirty days notice, to be exact. You can challenge this levy within the thirty days that you are given. This requires a lot of paperwork, which will take a lot of time, making the allotted thirty days seem even shorter. If you're the kind of person who cracks under pressure, it might be wise to get the help of a tax attorney or a licensed tax agent to sort out the details for you.

The best way to deal with a tax levy is to avoid it at all costs, especially if you're already in a tax relief program, such as the installment agreement plan. Once you miss an installment of your payment, a levy is automatically imposed. Therefore, simply don't miss any payments and keep your tax documents all organized from now on.

About the Author
Do you also want to learn about getting rid of your IRS and/or state tax problems? Visit us at our website for money saving Tax Debt Tips and Strategies. http://www.LimonWhitaker.com Over the past few years R. L. Daniel and partners have helped thousands of people with their IRS and state tax problems.