People who refuse to pay up their tax dues may have to incur the wrath of the IRS in the form of a wage garnishment The IR has a very simple modus operandi, if you don't pay up when requested politely, they take the money forcibly and wage garnishment is a blaring example of the IRS flexing its muscle. Not only your income but also your bank accounts and assets can be levied so if you have received a levy notice, you need to act NOW because this move can be very invasive to say the least and it may cripple your finances completely.
The only reprieve for the debtor here is that all entities have to follow a set procedure before garnishing your wages including the IRS ad this is the way things move forward:
To begin with you sill be served with a notice which will come after the Demand for payment. If you do not heed to this, you wages will be garnished in a month's time. If you want to avoid a levy the only recourse available is to get in touch with a tax attorney pronto. You cant just expect to get out this mess unscathed; so you will need to have proof and a plausible reason for why you could not meet your tax obligations and the ensuing penalties.
Once you receive the notice, you will still have 30 days to ask for a Collection due Process hearing which will be held at the IRS office. However, consult with your Tax attorney before making such a request. If advised to do so, you will have to be prepared for the hearing. Some time the levy is attributed to a mistake on the part of the IRS; however, you will still be expected to attend the hearing; the only difference will be that in this case you will have to go through the hearing so that you can present evidence to protect yourself and to point out the mistakes made by the IRS.
Unfortunately, this problem or situation is not as uncommon as it should be but many people incur unfair tax debts and property levies even though they don't owe any money to the IRS just because they chose to ignore the IRS levy Notice. So remember, as soon as you receive the notice get in touch with a Dallas tax attorney who can counsel you on the next course of action.
There are several steps that can be taken to release the IRS levy or to prevent them from continuing it. It is your responsibility to let the IRS Office of Appeals know about your case. If you have filed for bankruptcy, the IRS will have to back off till your plea is either dismissed or discharged. Also, if you have settled your outstanding taxes before or immediately after receiving the Levy notice the IRS should not proceed with the levy.
Another protective shield for tax payers who are facing imminent Levy is the statute of limitations; according to this statute, the IRS cannot collect taxes that have been assesses more than a decade ago. So in essence you will not have to pay the taxes and/ or penalties if the collection period of the tax expired before the IRS mailed the Levy Notice to you.
Another way to avoid levy is to get in touch with the IRS office and request an installment plan, you can do so at the Collection Due Process hearing at the Office Of Appeals. Even though you may end up paying more than what was originally owed at least you can pay an amount that is feasible to you and so its certainly better than getting your assets, bank accounts or wages garnished.
You have to understand that you simply can't escape a levy unless you reach a solution to the problem in agreement with the IRS, so unless you settle your debt or plan on settling it through an installment plan, the levy will go on. If there has been an error on the IRS's part and you were charged more than what you owed you may get a refund in future, to qualify for such a refund you will have to file for a refund within a month.
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