If you owe money to the IRS, a tax levy is one of the main tax problems you could face. To best deal with this and other IRS tax problems, knowledge is gold. The first step we suggest taking is learning everything about tax levies. This will enable you to move forward with the best resolution for your IRS tax problems. In this blog, we delve into everything you need to know about IRS tax levies, including how they can affect you.
What is a tax levy?
Tax levies are one of the most undesirable IRS tax problems any taxpayer may have to deal with. What a tax levy does is seize your property or assets to pay off your tax debt. Tax levies don’t just target real estate, they can target your employer for wages and your bank accounts are also fair game. This is why understanding how to avoid and deal with a tax levy is so important.
Related Blog: A Brief Guide on How to Stop an IRS Levy
How do you know if an IRS Levy Is Coming Your Way?
Fortunately, getting caught off-guard by a tax levy is unlikely to happen. Before you worry about a tax levy, the IRS typically takes action through a tax lien. A tax lien allows the IRS to take claim over your property, without actually seizing it. At this stage, you can seek IRS problems help through a tax expert and get rid of the lien. This can prevent you from actually having your assets seized.
How can a tax levy affect you?
A tax levy can result in the seizing of your home. This is the most extreme action the IRS can take rather than the norm, though. However, it does happen, so you should be aware of the possibility. Additionally, a tax levy can significantly reduce your salary by collecting debt directly from your paycheck. If the IRS decides to freeze your bank accounts, your finances can be affected further.
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Solving IRS Tax Problems: How Can You Get Rid Of A Tax Levy?
There are many ways to approach your IRS tax problems. Yet, the most effective one will always be to pay your tax debt in full. If this is a possibility for you, payment can save you from tax liens and levies. Other IRS problem resolutions include payment plans, applying for an Offer In Compromise, and filing for an appeal. In some cases, filing for bankruptcy is also a choice to consider. Which option is best for you? This is a question that can best be answered by a tax law attorney. Tax law experts will help you determine a course of action and take you every step of the way.
Are you worried about a tax levy or other IRS tax problems? Stop worrying and take action! The best thing you can do is seek help from a tax law professional early on. This way you can start working towards an IRS problem resolution promptly and boost your chance for success. Tax attorneys at Nick Nemeth’s office are not only qualified but experienced at solving IRS tax problems daily. Get the help you need by calling us at (972) 627-4580 for a free consultation!