What is an IRS levy?
This is one of the first questions clients ask when they come to us. An IRS levy is one of the highest-pressure IRS collection tactics, and you’ll want to take urgent action to have the levy released.
When the IRS has been unsuccessful in collecting taxes, they may legally seize any property or right to property you own or have an interest in. This includes:
- Monies in bank accounts or other financial accounts (including retirement funds)
- Rental income
- Accounts receivables
- The cash loan value of your life insurance
- Social Security benefits
The IRS also may seize and sell your property to satisfy a tax debt. This can include your car, boat, or real estate.
In addition, any future federal tax refunds or state income tax refunds that you are owed may be applied to your federal tax liability.
An IRS levy is not the same as a tax lien. A levy is the seizure of your assets while a lien is only a claim on assets.
Reversing or Releasing an IRS Levy
The IRS was established to collect taxes, and they view themselves as the government’s collection agency. The strength of the IRS collections process is in their extensive powers.
However, the IRS is bound by procedures and laws in place to protect you, the taxpayer.
Although much has been written about the collections process and taxpayer rights, some of the most basic actions that you can take to reduce your tax liability are not disclosed when you contact the IRS directly. If you take them on independently, the IRS expects you to know your rights and how to execute them for your situation. Do not expect the IRS to help you—their job is to collect.
At Precision Tax Relief, our job is to protect you from IRS collections and secure the most favorable outcome on your behalf.
Our experienced IRS tax experts can often stop tax levies in just 24-hours. Stopping the IRS levy is a temporary reprieve from collections; it gives us time to resolve the back tax problem, either by negotiating payments or challenging the claims of the IRS.
Here are some of the ways we can resolve your tax debt problem and prevent the IRS from levying again:
- Offer in Compromise (OIC): If a case can be made that you are unable to pay the full tax debt, the IRS may compromise on the total amount owed. An OIC is not easy to negotiate, but we have a 94% success rate and our clients have paid on average only 3.6 cents on every dollar owed.
- Streamlined Installment Agreement (SIA): A SIA is an installment agreement with the IRS. If we can secure an affordable monthly payment, an SIA can be an attractive solution for taxpayers who aren’t eligible for the OIC.
- Partial Payment Installment Agreement (PPIA): By proving that you are unable to pay a standard SIA amount, we may be able to negotiate smaller monthly payments, based on what you can afford rather than the amount owed.
- Currently-Not-Collectible (CNC) status: By proving hardship, we can have you classified as CNC. When you have CNC status, you are not required to make payments, but the IRS will re-evaluate your status periodically. This is only a temporary solution, but can give reprieve while we work on a longer-term strategy.
We know that an IRS levy is one of the most stressful experiences our clients face. Our goal is to stop the levy urgently, and then win you a favorable outcome—for an affordable fee.
You are in good hands with Precision Tax Relief. Since 2013, we have helped more than 700 clients across the country resolve their tax debt through the IRS Offer in Compromise Program. Many of our clients have saved over $100,000. That’s why we have a 98% satisfaction rating in more than 700 reviews — more than any other tax relief agency.
Get Help Stopping an IRS Levy
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