Placement and Resolution of IRS Tax Levy

Last updated on August 24, 2021

Non-payment of tax debt leads to IRS tax levy. IRS levy is the aggressive collection action of the IRS under which the IRS seizes and/or sells the property of taxpayers to fulfil tax debt. Taxpayers who are under tax debt receive multiple notices from the IRS before a tax levy is placed. When taxpayers do not take action to resolve the tax debt the IRS places a levy to satisfy the tax debt.

Placing of IRS Tax Levy

The IRS cannot place a tax levy before it has sent the final notice of tax levy to the taxpayer concerned. The notice is called Final Notice of Intent to Levy and Notice of Your Right to A Hearing. After a taxpayer has received this notice and has not responded or begun efforts to resolve the tax debt, the IRS places a levy.

Although the IRS sends many notices to taxpayers in tax debt with information about the debt and how to resolve it, after the final notice of levy the IRS does not communicate with taxpayers.

Resolution of IRS Levy

It is best to avoid an IRS levy by choosing an IRS tax debt payment program. Early resolution of a tax debt problem helps to reduce IRS penalties and interest, and avoid tax liens and tax levies. For effective resolution, taxpayers can take help from tax resolution companies or tax professionals. Expert service ensures early and successful resolution to a tax debt issue.

In cases where taxpayers have received the final notice of levy and did not respond, they must immediately take help from tax experts to stop a levy. After a levy has been placed, it is difficult to get it removed. Taxpayer must, therefore, make efforts to pay the tax debt and avoid aggressive collection actions of the IRS.