An IRS levy is a legal seizure of your assets to pay a tax debt owed. The Irs will usually levy when they have assessed a tax amount and mailed a "Notice and Demand for Payment", the tax payer ignored or refused to pay the balance owed, and a "Final Notice of Intent to Levy" has been mailed at least thirty days prior.
The IRS tries to collect from the following assets:
1.Wages - An IRS wage levy is probably the most common form of IRS levy. It is delivered to your employer to withhold a specific percentage (usually a high amount) of an individual's paycheck per pay period.
2.Bank Accounts - This kind of IRS levy is sent to your bank. The levy will seize the amount in the bank account up to the amount of the actual tax balance. It is a onetime tax levy nonetheless, the irs can levy the bank account again.
3.Social Security - The IRS may levy up to 15% of one's Social Security through the Automated Federal Payment Levy Program, and manually there is simply no restriction on what they are able to levy.
4.Pension Accounts, Life Insurance, and Annuities - Mostly any sort of 3rd party accounts in one's name.
5.Property - This is actually the least common sort of IRS levy. The Irs can take assets including houses, vehicles and about any kind of personal material goods with a few exclusions.If you do not pay your taxes (or make plans to settle the tax debt the IRS might possibly seize and sell any type of real or personal property that you possess or have an interest in.
How Long Can An IRS Tax Levy Last?
An IRS levy will continue until the tax debt is paid fully, time to collect the taxes has ended or until the levy has been released.
How Can One Stop IRS Levy Measures?
An IRS levy is an assertive act by the Irs in order to seize personal assets. The IRS will demand disclosure of financial information and assets in advance of releasing any levy. Putting a tax professional on your side who offers expertise in working with the collection dept of the IRS will ensure that the tax laws and regulations are worked to the tax-payers benefit. An skilled tax expert will likewise know the options for resolving any tax debts and the quickest way to have the levy released.