IRS Tax Levy
A tax levy is a legal action taken by the Internal Revenue Service (IRS) to seize a taxpayer's property in order to satisfy a tax debt. The IRS is authorized to levy a taxpayer's wages, bank accounts, retirement accounts, and other property if the taxpayer does not pay their taxes or make arrangements to pay them. Prior to taking this action, the IRS must follow certain procedures, including sending a Notice and Demand for Payment and giving the taxpayer an opportunity to appeal the proposed levy.
According to IRS code 26 U.S.C. § 6325(f), a taxpayer may request a release of a tax levy if they have entered into a satisfactory payment agreement with the IRS and have made all required payments under the agreement. The taxpayer may also request a withdrawal of the levy if the tax debt has been paid in full or if the levy was imposed in error. This code outlines the procedures and requirements for requesting a release or withdrawal of a tax levy. It is important for taxpayers to be familiar with this code and to seek the advice of a tax professional when dealing with a tax levy.
Tax Levy: What It Is, How to Avoid It, and How Carr Law Firm Can Help
As a taxpayer, you have a legal obligation to pay your taxes on time and in full. Failure to do so can result in serious consequences, such as tax liens and levies. In this article, we'll take a closer look at tax levies, including what they are, how to avoid them, and how the Carr Law Firm can help you resolve them.
What is a Tax Levy?
A tax levy is a legal action taken by the IRS or state tax agency to seize your property and assets to satisfy an outstanding tax debt. The levy can be placed on your bank account, wages, social security benefits, or any other assets that can be used to pay your tax debt. The IRS or state tax agency must first issue a notice of intent to levy before they can seize your assets.
How to Avoid a Tax Levy?
The best way to avoid a tax levy is to pay your taxes on time and in full. However, if you are unable to do so, there are several options available to you:
- Installment Agreement: An installment agreement allows you to pay your tax debt over time in monthly installments. This can help you avoid a tax levy as long as you stay current with your payments.
- Offer in Compromise: An offer in compromise is an agreement between you and the IRS or state tax agency to settle your tax debt for less than the full amount owed. This can help you avoid a tax levy if you are unable to pay your tax debt in full.
- Currently Not Collectible Status: If you are unable to pay your tax debt due to financial hardship, you may be able to qualify for currently not collectible status. This means that the IRS or state tax agency will not attempt to collect your tax debt for a period of time.
How Carr Law Firm Can Help?
The Carr Law Firm specializes in tax resolution services and can help you resolve your tax debt issues, including tax levies. With over 25 years of legal experience and the founding attorney, Nathan E. Carr, having a Master's Degree in Taxation, the Carr Law Firm has the expertise to navigate the complexities of tax law and negotiate with the IRS or state tax agency on your behalf.
The Carr Law Firm can help you with the following tax resolution services:
- Installment Agreements: The Carr Law Firm can negotiate an installment agreement with the IRS or state tax agency on your behalf to help you pay your tax debt over time.
- Offer in Compromise: The Carr Law Firm can assist you in preparing and submitting an offer in compromise to the IRS or state tax agency to settle your tax debt for less than the full amount owed.
- Currently Not Collectible Status: The Carr Law Firm can help you qualify for currently not collectible status if you are unable to pay your tax debt due to financial hardship.
If you are facing a tax levy or any other tax debt issue, contact the Carr Law Firm today for a free consultation. We will review your case and provide you with the best possible solution to resolve your tax debt issues.
Conclusion
A tax levy is a serious matter that can have a significant impact on your financial wellbeing. However, with the right tax resolution services and legal expertise, you can avoid a tax levy and resolve your tax debt issues. Contact the Carr Law Firm today to learn more about how we can help you resolve your tax debt issues and get back on the path to financial stability.
Helpful Resources:
- Arizona Department of Revenue: https://azdor.gov/
- Internal Revenue Service: https://www.irs.gov/
- Arizona Tax Law Representation: https://www.carrlawaz.com/tax-law-representation/