If you’ve received an IRS Notice of Intent to levy, it’s understandable to feel anxious. However, before the panic sets in, it’s essential to know that this notice does not necessarily mean that your assets are about to be seized immediately. When handled correctly, you can avoid many of the pitfalls associated with an IRS Intent to Levy. This article will guide you through appropriately responding to an IRS Notice of Intent to Levy and help you fully understand your rights and obligations.
Understanding the IRS Intent to Levy
The IRS sends a Notice of Intent to Levy to taxpayers who have overdue tax debts. This notice is a warning that the IRS can seize your property or assets if the debt is not settled within a certain timeframe. It’s important not to ignore this notice and to take prompt action to protect your assets.
Steps to Take After Receiving an IRS Notice of Intent to Levy
- Read the Notice Carefully: Understand what the notice is saying and the amount of tax owed. It’s crucial you don’t ignore the notice.
- Seek Professional Advice: Consult with a tax professional or attorney who specializes in tax issues. They can guide you through the process and help you understand your options.
- Negotiate with the IRS: You can attempt to arrange a payment plan or seek a compromise with the IRS. Remember, the goal is to resolve the tax debt and lift the Intent to Levy.
- Request a Hearing: If you disagree with the tax debt or the Notice, you have the right to request a hearing with the IRS Office of Appeals.
Your Rights as a Taxpayer
Knowledge of your rights is crucial when dealing with an IRS Intent to Levy. You have the right to professional and courteous treatment by IRS employees, the right to privacy and confidentiality about tax matters, the right to know why the IRS is asking for information, how it will be used, and what happens if the requested information is not provided.
Frequently Asked Questions
What assets can the IRS seize in a levy?
The IRS can seize any asset that you do not need for your basic survival and production of income. This includes properties, your car, or bank accounts. However, the IRS can’t seize items like necessary clothing, undelivered mail, certain amounts worth of furniture and personal effects, among others.
How long does it take for the IRS to levy after the notice?
Typically, the IRS can levy on your property 30 days after sending the Notice of Intent to Levy. But in some cases, the IRS can take this action sooner.
How can I stop an IRS levy?
You can stop an IRS levy by paying your tax debt in full, setting up a payment plan with the IRS, or proving that the levy creates an immediate economic hardship.
Final Words
The notice of an IRS Intent to Levy is not something you should overlook. Understanding the intricacies can mean the difference between outright loss and a sensible compromise or resolution. Remember that immediate action and open communication with the IRS can drastically affect the potential repercussions of the notice. So when confronted with an IRS Intent to Levy, don’t ignore it, act on it!
