IRS Notice of Levy
In order to know what you should do next, you need to realize how you got here in the first place.
The IRS first mails you a notice and demand for payment once they have determined that you owe taxes.
Some people never respond or perhaps just put it aside and forget about it.
Nevertheless, if they do not receive a payment from you, then they send you what is called a Final Notice of Intent to Levy and Notice of Your Right to a Hearing thirty days before the levy.
This can be given in person at your home, at your business, or by mail.
But let's dig a little deeper about why you got here.
Yes it matters, because if you had a hardship that caused you to get behind on your taxes, the IRS will include that in their negotiations.
Did you go through difficult financial times that caused you to owe back taxes? If so, what caused it? Did you lose your job...
Did you go through a divorce? Medical problems? Once you have determined why you got behind on your taxes, write everything down.
Then write down your budget so that you can figure out what your monthly expenses are and what you can afford to pay.
If you're starting to think that getting tax relief is a pain, then you're right.
Heck, we haven't even started.
Now do keep in mind that you can request a Collection Due Process hearing with the Office of Appeals.
However you'll need to file your request within thirty days of the date on your notice.
For example, if you already paid your IRS taxes, then that would be grounds for an appeal.
Or if you were protected by bankruptcy, then again you could appeal the levy.
Or if the IRS made a procedural error when they assessed your liability.
Perhaps you have received a notice to levy on taxes that you owed that are beyond the statute of limitations.
Again, that would definitely be a reason to appeal the levy notice.
There are other grounds for appeal, but I do want to mention one more, which is that you would like to discuss collection options.
This is important! If you owe less than $10,000 in IRS back taxes, you have the option to enter into an installment agreement.
Granted that could make it difficult to pay all your other bills, but you do have that option nonetheless.
Ideally however, what you want to do is settle your IRS debt.
This is where your hardship comes into play.
Along with your financial worksheet, called a 433, you can submit for a hardship plan.
You may choose to also negotiate an abatement of your penalties and interest.
There are numerous payment plans available with regards to receiving tax relief.
Receiving an IRS Notice of Levy is not the end of the world, but not doing anything about it can be.
Of course if you owe more than $10,000, you may not qualify for an installment agreement or other plans or you may simply not be able to afford the payments.
Again, this is where reducing the debt is key.
Due to the IRS bureaucracy and never ending paperwork and negotiations, you may choose to have a tax representation firm do all the work for you.
Do keep in mind that if you have years of un-filed taxes, then those will need to be filed prior to negotiating an IRS debt settlement program.
If you owe a substantial amount and need experts to represent you, make sure that they have an in house CPA to prepare your taxes.
The basic eleven steps in resolving your IRS Notice of Levy are the following: a) Take action.
Don't just sit around hoping that it all goes away, because it won't.
b) Determine whether there are grounds for appeal.
c) Write your hardship reasons for tax relief.
d) Educate yourself on Tax Law.
e) Write down your budget and complete a 433 (A or B).
f) Research various IRS debt settlement plans, i.
e.
CNC, Installment Agreements, Offer In Compromise, Innocent Spouse, etc.
to determine which you may qualify for, a combination of these plans.
g) Prepare any un-filed tax returns.
h) Request a tax record to find out exactly how much you have been charged in penalties and for which years.
i) File for a Penalty Abatement.
j) Once you have determined which plan you may qualify for, submit the proper forms CORRECTLY! One mistake could disqualify you.
This is especially true of an Offer In Compromise.
k) Contact the IRS to find out which Agent is in charge of your file.
Keep calling and calling until you get the decision maker.
Keep them abreast of what you are doing and negotiate with them all the while to resolve your back taxes.
(This should be done from the start until the end.
)
The IRS first mails you a notice and demand for payment once they have determined that you owe taxes.
Some people never respond or perhaps just put it aside and forget about it.
Nevertheless, if they do not receive a payment from you, then they send you what is called a Final Notice of Intent to Levy and Notice of Your Right to a Hearing thirty days before the levy.
This can be given in person at your home, at your business, or by mail.
But let's dig a little deeper about why you got here.
Yes it matters, because if you had a hardship that caused you to get behind on your taxes, the IRS will include that in their negotiations.
Did you go through difficult financial times that caused you to owe back taxes? If so, what caused it? Did you lose your job...
Did you go through a divorce? Medical problems? Once you have determined why you got behind on your taxes, write everything down.
Then write down your budget so that you can figure out what your monthly expenses are and what you can afford to pay.
If you're starting to think that getting tax relief is a pain, then you're right.
Heck, we haven't even started.
Now do keep in mind that you can request a Collection Due Process hearing with the Office of Appeals.
However you'll need to file your request within thirty days of the date on your notice.
For example, if you already paid your IRS taxes, then that would be grounds for an appeal.
Or if you were protected by bankruptcy, then again you could appeal the levy.
Or if the IRS made a procedural error when they assessed your liability.
Perhaps you have received a notice to levy on taxes that you owed that are beyond the statute of limitations.
Again, that would definitely be a reason to appeal the levy notice.
There are other grounds for appeal, but I do want to mention one more, which is that you would like to discuss collection options.
This is important! If you owe less than $10,000 in IRS back taxes, you have the option to enter into an installment agreement.
Granted that could make it difficult to pay all your other bills, but you do have that option nonetheless.
Ideally however, what you want to do is settle your IRS debt.
This is where your hardship comes into play.
Along with your financial worksheet, called a 433, you can submit for a hardship plan.
You may choose to also negotiate an abatement of your penalties and interest.
There are numerous payment plans available with regards to receiving tax relief.
Receiving an IRS Notice of Levy is not the end of the world, but not doing anything about it can be.
Of course if you owe more than $10,000, you may not qualify for an installment agreement or other plans or you may simply not be able to afford the payments.
Again, this is where reducing the debt is key.
Due to the IRS bureaucracy and never ending paperwork and negotiations, you may choose to have a tax representation firm do all the work for you.
Do keep in mind that if you have years of un-filed taxes, then those will need to be filed prior to negotiating an IRS debt settlement program.
If you owe a substantial amount and need experts to represent you, make sure that they have an in house CPA to prepare your taxes.
The basic eleven steps in resolving your IRS Notice of Levy are the following: a) Take action.
Don't just sit around hoping that it all goes away, because it won't.
b) Determine whether there are grounds for appeal.
c) Write your hardship reasons for tax relief.
d) Educate yourself on Tax Law.
e) Write down your budget and complete a 433 (A or B).
f) Research various IRS debt settlement plans, i.
e.
CNC, Installment Agreements, Offer In Compromise, Innocent Spouse, etc.
to determine which you may qualify for, a combination of these plans.
g) Prepare any un-filed tax returns.
h) Request a tax record to find out exactly how much you have been charged in penalties and for which years.
i) File for a Penalty Abatement.
j) Once you have determined which plan you may qualify for, submit the proper forms CORRECTLY! One mistake could disqualify you.
This is especially true of an Offer In Compromise.
k) Contact the IRS to find out which Agent is in charge of your file.
Keep calling and calling until you get the decision maker.
Keep them abreast of what you are doing and negotiate with them all the while to resolve your back taxes.
(This should be done from the start until the end.
)
