A Better Understanding of IRS Levies IRS levies are a very serious matter. They give the Internal Revenue Service the power to seize your property and assets. They are then sold to satisfy tax liability. It is important to know what tax levies are and what action needs to be taken to avoid them. A tax levy is not a lien. Liens are placed on property as collateral for money that is owed. For instance, if a lien is on your house, it gives the lien holder part interest in the property. If you want to sell the house, the amount of the lien must be paid first. Otherwise the house cannot be sold or mortgaged. However, you still maintain possession of the property. This is not the case with a levy. A tax levy means that the Internal Revenue Service can seize things you own to satisfy what you owe for taxes. IRS levies can be for personal or business taxes. If it is a levy for business taxes, you are likely to have your bank accounts frozen. While they are frozen you cannot remove any funds for any purpose. However, you should receive plenty of fair warning before this happens. Before your assets are seized you receive several warnings and demands for payment. If you do not pay the amount owed or contact the Internal Revenue Service, you eventually receive a final notice. This is something that you should not neglect. Your final notice should include you right to a hearing on the matter. Final notices are usually sent by registered or certified mail to homes or business addresses. This means that someone must sign for the letter. If you receive your final notice letter, you
must take some type of action. They are not concerned if they freeze your accounts and destroy your business in the process. You may choose to have a review by an Internal Revenue Service manager. However, you may wish to request a hearing. This is done at the Office of Appeals and you must request your Collection Due Process hearing by visiting an Internal Revenue Service Office. Make sure that you take this action before your 30 days have passed. Otherwise, it may be too late. Your hearing gives you the chance to talk about anything that is related to your tax bill. For instance, if you have already filed for bankruptcy you may be entitled to an automatic stay. You have a lot of options at your hearing and you may present a spousal defense or you can dispute the amount owed. This is the time to mention that statutes of limitation have passed. You may wish to talk about payment options that you may have left. If the Internal Revenue Service sends you notice of a tax levy, they have the power to seize things that you own. Before this occurs, you need to do something to prevent it, if possible. You have several different options and you can discuss them with a tax professional. Tax resolution services provide a great deal of assistance with matters like IRS levies and other tax concerns.