IRS Levy and You
Your bank accounts, salary, and property can be taken by the IRS through an IRS levy. They will seize as many of these assets as needed to provide cash to settle your tax bill. If you have been served notice of an IRS levy, your IRS issues have now caught up with you. Obviously, you can avoid a levy by settling your taxes in full, as well as accrued interest and penalties. With the addition of more penalties and interest, your tax bill is increasing every day. Before it gets out of hand, get this paid off ASAP. There are other options to get the IRS to cancel a levy if you can't pay your tax liability: The levy was received after the statute of limitations ended
The IRS is convinced that release of the levy will help them get the tax
You've negotiated for an installment
The levy will bring you extreme financial hardship
Part of the assets will be released if the assets taken is more than the taxes you owe
Declaring bankruptcy
Offer to compromise You can prevent your assets from getting seized if you move before an IRS levy is received. Do not attempt one of these if you think that you are violating the law: Transfer of assets: under some circumstances, you may sell or give away properties
Proof that the levy is not economically feasible: if it'll cost the IRS more to obtain, keep, and sell the property than it's worth
Asset is vital for you to work: if you need the asset to do your job or to get to work
Keep the existence and locations of assets a secret: for assets existing outside the state, country, etc.
Keep mobile assets away from home or business vicinity: cars, boats, recreational vehicles
Move bank accounts: a matter of self-protection
Lease, do not own your property: cannot seize what you do not own
Deposit money in retirement accounts: they are discouraged from touching these
Use safety deposit boxes: they will have a hard time finding these You have to be proactive in dealing with your IRS problems. It will not destroy your life if you will not allow it. IRS levies must be avoided if possible.
