Payday Loans and Fast Cash Guide | Tax Problem Resolution for IRS Bank Levy or Wage Levy

Tax Problem Resolution for IRS Bank Levy or Wage Levy

Receiving a wage levy can be an unlikeable experience. A levy is a legal abduction of your property to satisfy your tax debt. Fortunately, there are steps that you can take to prevent this from happening.

The IRS will first send you a letter of Final Notice of Intent to Levy (Form 1058) and a Notice of Your Right to A hearing. Included in the letter is the notification of your unpaid taxes and that the IRS intends to levy to collect the amount you owe. They will execute this starting thirty days from the date that you received the letter. After this, they will then send a levy notice to your bank.

Filing Form 12153 or the Request for Collection Due Process Hearing within thirty days from the date of the letter will be the most effective step you should take to stop the IRS. In the hearing that you had requested you can also submit an Offer in Compromise or request an Instalment Agreement wherein you could offer an alternative other than the levy that is acceptable to the IRS. Failure to request for this form will allow the IRS to freely levy your bank account, wages and other properties. Filing the request on time will force the IRS to schedule a hearing. The purpose of the hearing is to determine whether the collection activity by the IRS is appropriate.

The Appeals Officer is the one who presides the hearing. He is independent from IRS collection personnel. His function in the hearing process includes verifying that the IRS followed all administrative and procedural requirements, determining if the proposed IRS collection action “balances the need for efficient collection of taxes with the legitimate concern of the taxpayer that the collection action be no more intrusive than necessary and consider all less intrusive collection alternatives such as an Offer in Compromise or an Instalment Agreement which you may propose in your request for Collection Due Process hearing.

The IRS will suspend all collection activities during the hearing process. Issuing a Notice of Determination will be the next step for the IRS if you failed to resolve your problem. Filing a lawsuit in the US District Court, thirty days after the notice will be your next tax problem resolution. This will prevent the IRS from levying your properties. Filing a lawsuit will extend the 10-year statute of limitation for recovery of taxes due.

If the cut-off date for appealing a Collection Due Process Hearing has passed, you can still request the IRS for an equivalent hearing by means of the Request for Collection Due Process Hearing. But take note that in this kind of tax problem resolution is not capable of extending the 10 year statute of limitation for collection of tax debts and there will be no right of appeal in any court against the IRS’ decision. In addition, The IRS may already levy while you are still waiting for the equivalent hearing.

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