Reasons The Irs May Use A Tax Levy
A tax levy happens when the IRS takes control of your properties so that you can pay for your debt. By law, the IRS does not have to get any approval for these actions within a court. Furthermore, the IRS is permitted to take any sort of belongings that you have in exchange for a payment. This means that property, such as a house, car, or anything of actual value can be used as a settlement for your debt.
The IRS can also get rid of your property in an effort to acquire money as payment for your debt. Another option happens when the IRS claims money out of your wages or any earnings as a form of payment also. Regardless of whether you are getting money from a loan or have taken out life insurance, the IRS can control these factors and use them as a technique to get back the money that you owe for taxes.
However, this is not to say that the IRS actively seeks individuals that it can levy so as to acquire additional money. A levy only happens when the individual seems to be avoiding making payments. For example, the IRS will provide you with a form that explains that you need to make a payment towards your taxes. If you ignore the initial contact, they will try to communicate with you again. If you continue to ignore them or refuse to pay the tax, you will be given a letter about their intent to levy and a hearing will take place in the next 30 days. Throughout this time, if you do not take action, it is guaranteed that you will be levied.
In nearly all cases, the IRS will wish to work with you instead of contacting you about the tax levy. Individuals who are avoiding making their payments or have refused to pay the IRS have a great chance of experiencing a levy. There are additional situations where you may get a levy notice but no action is truly taken against you. For example, if you receive a notice but you have already made all of your payments, you are not expected to deal with a levy. Likewise, if there has been a mistake in determining that a levy is needed, it may also not happen.
The IRS can also get rid of your property in an effort to acquire money as payment for your debt. Another option happens when the IRS claims money out of your wages or any earnings as a form of payment also. Regardless of whether you are getting money from a loan or have taken out life insurance, the IRS can control these factors and use them as a technique to get back the money that you owe for taxes.
However, this is not to say that the IRS actively seeks individuals that it can levy so as to acquire additional money. A levy only happens when the individual seems to be avoiding making payments. For example, the IRS will provide you with a form that explains that you need to make a payment towards your taxes. If you ignore the initial contact, they will try to communicate with you again. If you continue to ignore them or refuse to pay the tax, you will be given a letter about their intent to levy and a hearing will take place in the next 30 days. Throughout this time, if you do not take action, it is guaranteed that you will be levied.
In nearly all cases, the IRS will wish to work with you instead of contacting you about the tax levy. Individuals who are avoiding making their payments or have refused to pay the IRS have a great chance of experiencing a levy. There are additional situations where you may get a levy notice but no action is truly taken against you. For example, if you receive a notice but you have already made all of your payments, you are not expected to deal with a levy. Likewise, if there has been a mistake in determining that a levy is needed, it may also not happen.
