Tax Matters: How to Avoid Levies and Issues With the IRS

In October, it will be time for the IRS to send out notices requesting that any unpaid taxes are paid as a matter of urgency. For many people, a gentle reminder is all that they need. For others, it can cause a lot of financial problems.



Tax balances need to be paid. It is that simple. You need to make sure that you have paid your taxes to date. If you have not, you need to make arrangement so that you can pay your tax. If you do not, you could face further financial hardship. If you do not pay your tax, levies can be used to ensure that the payment has been collected. Typically, September, October and November are the prime months for this kind of action.

However, if you are a taxpayer, you need not despair. You don’t have to worry about levies if you take the appropriate course of action. Of course, you can arrange to pay your unpaid balance with the IRS or you could devise an alternative method of payment. This can be discussed with the IRS so that you are not issued with a levy.

The IRS: Issuing Levies

If you do not pay your taxes, the IRS can seize your property and assets. The law states that they can do this. So, if you are issued with an IRS tax levy, you could find everything that you own could be seized.

The IRS has to issue a client with:

•    Notice and demand for payment

•    Notice of intent to levy

•    Notice of the right to a Collection Due Process hearing

While this process may seem frightening, there are things that you can do to avoid issues with the IRS and to avoid receiving a levy.

Avoiding Levies: What You Can Do

In the event that you owe taxes, you need to contact the IRS as a matter of urgency. You will have to pay your taxes, but the IRS may allow you to set up a payment plan. However, the payment plan will be under scrutiny from the IRS. They will assess your personal income and your individual financial situation.

However, if you have the money at your disposal, you can pay your tax bill in full. You may be granted an extension of 120 days. You can obtain an extension if you do not have all of the cash at your disposal. This will ensure that you do not have a levy imposed on you.

Monthly payments can also be set up to ensure that your taxes are paid. You will have an agreed time period to pay your taxes back. The taxes must be paid in full by the end of the agreed period. If not, the IRS will issue you with a levy and your assets will be seized.

In the event that you cannot pay at all, you can be deemed as a ‘non-collectible’ status. This means that you won’t have to pay your tax bill, right now. However, this can be collected from you in the future.


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