How To Stop a Tax Levy from the IRS
Factors Considered in Releasing a Tax Levy
The IRS may consider releasing you from the tax levy if one, or more, of the factors below are met:
- There is evidence that you paid the amount owed;
- The statute of limitations expired before the IRS issued the tax levy;
- Release of the levy will actually enable you to pay the taxes owed;
- You entered into an installment agreement that does not allow the levy to continue; and/or
- The overall value of the property exceeds the amount owed which means the release of the levy will not impact the IRS’ ability to collect the amount owed.
How to Respond to a Tax Levy Notice
As it has been noted, there are various actions one can take to challenge or contest a tax levy. Hence, there are various effective ways in which you can respond to a tax levy to stop it completely, or to mitigate its potential negative impact.
- Submit a formal request – Upon receiving the levy notice, you should contact the IRS and, if possible, try to pay the tax debt. If you are able to pay the amount owed, you can then request a “release” of the tax levy. If the IRS refuses to release the levy, you have the right to appeal the decision before, or after, the agency places a levy on your bank account, wages or other property.
- Non-Receipt of Levy Notice – The IRS is required to provide notification when they pursue a legal judgment that will enable them to levy your bank account. As a result,if you were not properly notified by the IRS, you may be able to get the levy released on this basis.
- Expiration of the Statute of Limitations – The IRS has only 10 years to collect taxes and cannot continue after that due to the applicable statute of limitations. This is why it is extremely important to determine the exact age of your alleged tax debt. If it is more than 10 years old, you may be able to get the levy released based on an expiration of the statute of limitations.
- Offer in Compromise – If you are unable to pay your tax debt due to a lack of sufficient income or other financial distress, you have the right to submit an offer in compromise to the IRS so that you can settle your debt for less than what you owe. If the compromise offer is approved, the levy will be released, and you can pay the balance according to the agreed payment plan.
Have Questions About IRS Tax Relief? Speak to an Experienced Tax Lawyer Today
If you are struggling with making payment to the IRS, contact Anderson Bradshaw today. Our team of tax relief attorneys and professionals are ready and able to help. We possess more than three decades of experience handling complex tax disputes for individuals and companies. You will have the confidence and peace of mind in knowing your difficulties with the IRS can be resolved and corrected quickly and efficiently.