Reasons The IRS May Use A Tax Levy | Free Finance Articles

Those who owe large amounts of debt to the IRS commonly are concerned about the risks associated with undergoing a tax levy. In fact, tax levies tend to be the one topic that most individuals fear in terms of dealing with the IRS. However, these types of actions only tend to happen as a last resort when people are not able to pay their debts at all.

Basically, a tax levy occurs when the IRS seizes your property as a payment for the debt that you owe. The law states that the IRS does not have to take action in a court in order to be approved for their decision. Likewise, the IRS can take any property as a payment for your debt. This indicates that the IRS can use a car, house, or any other property of monetary worth as payment for your debt.

The IRS can also sell the property in order to gain money as payment for your debt. An additional alternative is that the IRS can remove money from your earnings and wages to get their payment. Whether you are getting money from a loan or even have taken out life insurance, the IRS can control these factors and use them as a method to get back the money that you ultimately owe for taxes.

However, this is not to say that the IRS actively seeks individuals that it can levy in order to gain more money. A levy only occurs when the individual seems to be avoiding making payments or other elements have happened within an extended timeframe. In example, first the IRS will contact you with a form that explains that you need to make a payment towards your taxes. If you ignore this contact, they will contact you again in the future. If you continue to ignore them or refuse to pay the tax, you will receive a notice about the intent to levy and a hearing that will occur in the next 30 days. If you do not take any action, you will be levied.

Generally, the IRS will contact you with intent to work with you on payments instead of a tax levy. The use of a levy only occurs if it seems that you are purposely avoiding making payments or you have refused. Of course, there are also situations where you can receive a levy notice but there is no corresponding action. In example, if you get a notice but you have paid your required tax payments, it?s less likely that you are going to experience with a levy. Additionally, if the IRS has made errors in determining the levy, there?s not a large chance that it will actually happen.

Even though receiving a tax levy notice is likely to make you feel a bit stressed out and concerned regarding your properties, there are always actions you can take to prevent the levy from occurring. If you are willing to contact the IRS to inform them about mistakes that they made or payments that you plan on offering, experiencing a levy is less likely to occur.

starship troopers nfl nfl cruise ship italy patriots broncos game saints willis mcgahee