The IRS may attempt to collect the debt using a variety of strategies when a taxpayer is behind on their tax payments. Seizing assets, such as money and real estate, is one of the most popular methods. Dealing with this procedure, known as a tax levy, may be quite stressful. You may safeguard your assets and resolve your obligations out of court by working with a reputable tax levy lawyer in Tennessee.
The IRS notifies the taxpayer of the assessment at the start of the tax levy procedure. This allows the taxpayer 30 days to settle the tax obligation or request a hearing, and it also specifies the amount owed and the due date. A final warning letter headed “Final Notice of Intent to Levy and Your Right to a Hearing” will be sent to the taxpayer if they don’t reply. This can be sent by certified mail, faxed to the tax debtor’s last known address, delivered in person, or dropped off at their residence or place of business.
A person has 21 days after receiving the notice of intent to levy to get in touch with their bank and let them know that the IRS is attempting to levy their accounts. After then, the bank will keep the money in the account for 21 days, barring withdrawals. The levy may occasionally be applied to additional accounts that the person owns. A taxpayer’s income, pension plans, dividends, company accounts receivable, rental income, commissions, or the cash loan value of life insurance policies may also be subject to a levy.
If the IRS concludes that the seized property is not required to pay off the obligation, the tax levy may be overturned or freed. But money will still be owing to the IRS. The IRS may accept a repayment plan but will not erase the debt if a tax lien is reversed or an asset is released.
Paying taxes on time and filing returns on time are the greatest ways to prevent a tax levy. A Memphis tax lawyer can assist in negotiating a tax settlement if you are unable to pay what you owe. Depending on the situation, this might entail requesting presently noncollectible status or declaring bankruptcy or demonstrating your inability to pay your tax burden. A specialist can also assist you in handling a contentious tax issue or getting ready for an audit.