If you owe taxes to the Internal Revenue Service (IRS), there are a number of reasons for you to be anxious. You never know when the IRS might put a levy on your assets to recover the outstanding amount. While it is a worrisome scenario, there are ways you can stop or get rid of an IRS tax levy. The best way to prevent such a situation is to pay your taxes on time. If you find yourself the subject of a tax lien, the first thing you should do is hire an IRS tax attorney. If you are a Texas resident, an IRS attorney in Fort Worth, TX, is best placed to help you find IRS tax relief. In this blog, we are going to explore the available tax relief options when looking for tax help in Fort Worth.
What is an IRS tax levy?
First, let us understand what exactly an IRS tax levy looks like. Here’s the thing. Tax levies never generally appear “out of the blue.” The IRS will notify you multiple times about your tax dues before imposing a levy. You will be notified through a Notice and Demand for Payment, which is followed by the Final Notice of Intent to Levy and Notice of Your Right to a Hearing. You must consider the last one as your final warning. Make sure you take immediate action as soon as you receive a notice by hiring an IRS tax attorney in Fort Worth, TX. If you don’t work out a relief plan soon enough, the IRS would take steps to seize your property to cover the value of the taxes you owe. This can include not only seizing your assets, bank accounts, and garnishing your wages, but also extracting funds directly from banks and employers. Let’s look at three ways to remove a tax levy.
Related Blog Post: Answering 5 FAQs about the IRS Bank Levy Process
1. Installment Agreement (IA)
An IRS Installment Agreement (IA) is one of the most common relief options that taxpayers choose when facing tax levies due to unpaid taxes. In this option, the IRS gives a taxpayer 72 months to pay off their tax debt through a systematic installment plan. Remember that while applying for an IA, taxpayers are generally asked to prove that they are not currently capable of paying off the entire debt. For that, you will need to submit sufficient bank records. Make sure that you hire an experienced IRS tax attorney in Fort Worth, TX. An experienced Fort Worth tax lawyer in Dallas, TX, can assist you with all the necessary steps to become eligible for an installment agreement.
Related Blog Post: An Introductory Guide to the IRS Bank Levy Release
2. Offer in Compromise (OIC)
An Offer in Compromise (OIC) is yet another great tax relief option for you if you are facing an IRS tax levy. An OIC is technically a request that you make to the IRS to settle your taxes for an amount less than the actual amount you owe. The OIC is, therefore, a more manageable route toward full payment of your dues. However, it is worth remembering that to be eligible for an OIC, you must be current with all filed returns. Besides, you should also commit to stay current with all future tax payments. Remember that an OIC will not be available if you are currently being audited or going through a bankruptcy.
3. Pursue Bankruptcy
Pursuing bankruptcy is the last resort taxpayers have when they are unable to pay their tax dues to get rid of a tax lien. It is, however, worth noting that filing for bankruptcy is a complex procedure and might not be the ideal option for everyone. You need to consider a number of factors before pursuing bankruptcy. That is why it is recommended to consult a Fort Worth tax attorney to know if filing for bankruptcy is the most suitable option for you.
We understand that being subject to an IRS tax levy can be frustrating and stressful. If you are facing such a situation, it’s recommended that you consult a qualified tax attorney. When looking for tax relief in Dallas, talk to our team of highly-experienced tax attorneys in Fort Worth, TX, at The Law Offices of Nick Nemeth. To learn more about available IRS tax settlement options, call (972) 484-0829, or fill out our Contact Form, and we’ll reach out to you at the earliest.