Your Tax Questions Answered: IRS Seizure and Tax Levy Procedures
- Author Patrick Jacobson
- Published June 8, 2011
- Word count 574
It's normal to have tax questions when you owe money to the Internal Revenue Service. What's an IRS seizure? What should I do when the IRS says they're going to execute a federal levy? Below, we will answer all of the most common tax questions, as well as how to steer clear of a federal levy or an IRS seizure. These tax questions' solutions might not be easy to execute, but you must try to resolve your debt to avert an IRS levy or an IRS seizure.
Tax Questions: The Different Kinds of Tax Levy
Until the Internal Revenue Service advises of an approaching tax levy, many individuals are okay with their tax questions continuing to go unanswered. A tax levy is the IRS' most powerful way of collecting debt. Essentially, a tax levy is the IRS collecting your tax debt by forcing your payment. There are various ways the IRS goes about doing this, which we're going to be going over. The toughest part of an IRS levy is that they are unpredictable. Taxpayers that had no idea they owed the IRS might all of a sudden be slapped with a tax levy without much warning. An IRS Seizure, which we will go over later, is an extreme type of IRS levy.
Tax Levy #1: The Bank Levy
Many tax questions are raised when a levy on your bank account is enforced. In a nut shell, the Internal Revenue Service uses the bank levy to seize all of the cash from your bank account to apply it toward your debt. Below, we address the most frequently asked tax questions regarding bank levy:
Question #1: Is the IRS allowed to take money from my bank account for good?
If you fail to adhere to their rules and act quickly to handle the levy, the IRS will legally seize the funds from your bank account permanently.
Question #2: How can I stop a tax levy from allowing the Internal Revenue Service to take my money for good?
You need to must take action the moment you are given the Internal Revenue Service's "Notice of Intent to Levy" if you want prevent a government confiscation of all the funds from your bank account. You have a mere 21 days!
Tax Levy #2: The Wage Levy
The Internal Revenue Service uses the wage levy to seize money directly out of your earnings. A bank levy is a one-time shot, but a levy on your wages is continuous. Until the money you still haven't paid is paid in full, the IRS can confiscate money from your wages.
- When a tax levy is in place, how much is the IRS permitted to claim from my income?
Whatever your monthly bills, the IRS will however much they think is "reasonable".
- How can I prevent the Internal Revenue Service from taking part of my income when they execute the IRS levy?
The IRS, by law, has to leave enough funds for you to cover your day-to-day essentials, including groceries, heat, and work transportation. You definitely have a strong case for having the federal tax levy lifted if you're unable to afford these expenses.
IRS Seizure Tax Question
The good news is that the IRS seizure won't happen for most. An IRS seizure is only used in extreme situations where a substantial amount is outstanding, and the taxpayer has plenty of possessions able to be claimed and resold with the income applied toward the back tax debt.
Are you facing an IRS Seizure or a Tax Levy? Go to Small-Biz-Tax-Debt.com and speak with a Tax Debt expert today who can offer you the answers to your Tax Questions about amended returns, tax levies and tax liens.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- 10 essential tax-saving strategies for landlords: Maximise your rental income
- A Comprehensive Guide to Navigating the Process and the Role of Customs Brokers in the UK
- Outsourced Accounting Services for UK Businesses: A Cost-Effective Solution for Financial Management
- Top 8 Self Assessment tax return software
- How to Close a Limited Company in the UK
- Maximizing Your Finances: Unleashing the Power of CPA Services
- VAT penalties – New rules
- TAX-FREE STRATEGIES IN AN UNCERTAIN ECONOMY
- 2022 Energy crisis and failure to connect Reality.
- When Are Corporate and Personal Taxes Due in Canada in 2021?
- You Would Never Have Thought That Having Accounting Internship Could Be So Beneficial
- ACTIVATION OF UAN
- Focal motivations behind getting a Tax direct for Small Business Firms
- Avoiding the flood — tax issues with water rights in agribusiness
- Social security benefits for a family (COVID-19)
- How to use QuickBooks Component Repair Tool?
- Do you want to reduce your taxes for next year?
- Will you be responsible with your tax refund?
- Getting started with QuickBooks Enhanced Payroll in Brief
- Are DSTs Right For Your 1031 Exchange
- Tax Return Makeovers By Kenya Woodard
- Why have all crypto tax attempts failed?
- Are You a Corporation? Know Why Consulting a Tax Accountant Is Vital
- Share capital or share premium for your Dutch company?
- Everything investors should know about 1031 sponsors
- Why is the income tax so high in UK?
- Should I do my own tax return?
- Get More Money Back on Your Tax Return with help from the Tax Cuts and Jobs Act
- Don’t Fall Victim to these 3 Tax Scams in 2018
- Find Out If 72(T) Penalty Free Income Is a Solution for You