IRS Levies – A Simple Explanation

September 30, 2010 by  Filed under: Taxes 

The IRS Levy is what keeps taxpayers up at night, afraid of the terrible things the IRS can do to them when they fail to pay their taxes in full. If the Internal Revenue Service goes after you in attempts to seize the money you owe, they can take your house, your car, your motorcycle, your boat, essentially anything you own that is worth a cent until they are entirely reimbursed. Through this method, the tax man can claim ownership of your property until they receive the overdue taxes that you owe.

Knowing what to expect when you receive a levy is as important as knowing how to come out of it with your property intact. Firstly, you will notice that they have frozen your bank account, as you will be unable to withdraw any money. In under a month, all of the money that you once had in your bank account will be sent to the tax man by the bank. If your account had sufficient funds to pay off your overdue taxes, then you are home free and can celebrate the end of your nightmare. Unfortunately, it usually doesn’t end there, as most people have overdue taxes due to insufficient means.

If after taking all of your money out of the bank, the internal revenue service still has not received all the money they were owed, they will begin to go after your assets. Such assets include you home, your car, your benefits (health, retirement etc) and insurance policies. The tax man is cut-throat and will do what they have to do to get their money; that means an IRS levy.

But don’t worry; there will be warnings before they serve you with an IRS levy by freezing your bank account and possessing your home. The IRS will first investigate your situation and calculate the amount of overdue taxes that you are responsible for paying. They will send you a notice that generally gives you 10 days to come up with the money to avoid an extra levy.

If you ignore this warning and fail to pay the overdue taxes within the time period provided, you will receive one last final warning. It is not in your best interest to avoid the final warning; that is unless you want to receive an IRS levy. If you are unable to come up with the money to pay the tax man, it is time to hire a professional to help you get through the difficulties that are sure to come.

For more great information and resources on an IRS tax attorney and a corporate tax attorney visit our site today.

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