5 Ways How You Can Fight IRS Levy
The IRS utilizes a number of collection activities to recover debts that taxpayers owe. When the IRS levies someone’s property, it takes over the ownership of the asset until the tax debt is paid in full. If you are someone facing this issue, here are 5 effective ways how to fight IRS levy:
Pay the Tax Debt in Full
The most effective way to get a tax levy released is to pay the amount you owe to the IRS in full. If possible pay the obligation in full, and make sure your account with the IRS has a zero balance. This is the first and the best way to get the levy released quickly.
Appeal the Levy
An individual gets a time of 30 days from the time the IRS notifies to make a formal appeal for the levy. The appeal temporarily stops the levy from being enacted until a decision is made on your tax situation. To file a formal appeal, you must complete and submit the IRS form 9423 on the official website. Appealing a levy can be a relatively straightforward process. However, this does not guarantee release of the IRS levy.
Make an Offer in Compromise
When an individual cannot pay off the full tax debt, he/she can settle the matter by making an Offer in Compromise. An OIC can help resolve your debt for less than what you really owe. The IRS free the remaining portion of the debt if it accepts your OIC. Make sure the offer is realistic and reflect the value of your current income and assets.
Request an Installment Agreement
When the IRS levies your assets, it will not remove its claim until the tax debt is paid or is unsatisfactory. Instead of waiting for months or years before this happens, you could requesting an installment agreement. It states that you will make regular monthly payments on the obligation. The payments are based on how much money you earn to ensures it is realistic and affordable. The agreement can potentially releases the levy on your property.
Ask for a Partial Payment Agreement
If you cannot pay off what you owe even with an installment agreement, you could ask for a partial payment agreement. It will reduce the payment amount on your tax debt each month, and thus saves you from financial strain while satisfying what you owe to the IRS.
Getting out of this situation is easy when you know the right tactics. If you happen to be in such situation, try doing these three effective tactics.