Tax Levy: IRS’ Tax Debt Collection Action

Last updated on August 23, 2021

The IRS has the legal right to collect taxes due from taxpayers through seizure of their property. In cases where taxpayers have not responded to IRS notices regarding the payment of their tax debt, they might receive the last notice from the IRS regarding levy called Final Notice of Intent to Levy and Notice of Your Right to A Hearing. After sending this notice, the IRS does not send any more correspondences to taxpayers.

The IRS, after placing the levy, is the legal owner of the property that is being levied and can sell it to satisfy the tax debt. It can seize and/or sell property under the possession of the taxpayer such as house, car, boat etc. It can also seize and/or sell property that is held by someone else such as bank account(s), retirement fund, insurance, rental income, licenses, dividends etc.

It is in the best interest of taxpayers to avoid an IRS levy. Instead of procrastination, they must act to resolve the tax debt problem at the earliest. They can choose an IRS debt payment program such as Installment Agreement, Offer in Compromise, Currently Not Collectible and Partial Payment Installment Agreement for resolving their tax debt problem.

For best resolution, they may take help from tax experts. In case a levy has been placed or the final notice for IRS levy ignored, taxpayers must immediately take help from tax resolution companies or tax professionals who will have a tax attorney or an enrolled agent to work on the case. They are qualified to achieve an agreement that is most beneficial to taxpayers.

The right tax help can mean the difference between delayed resolution and smooth resolution. For avoiding an IRS tax levy and for stopping it, choose a help that has the experience and the expertise in resolving tax levies.