Internal Revenue Services or IRS uses levy as a legal seizure of your property to satisfy its tax debts. While a lien may be used by IRS as a security against your tax debt, it is mostly the ‘levy’ that’s charged and tends to be more difficult for indebted individuals. In fact, when IRS uses levy, it may actually takeover an individual’s property, their wages or other securities to satisfy the tax debt. So, if you haven’t paid your taxes or made arrangements with the IRS, you might invite yourself an IRS tax levy, including your property- from cars to homes, boats etc. or your wages, retirement funds, rental incomes etc.
IRS tax levies are usually charged only when these three requirements are met-
- IRS has assessed your tax details and sent you a notice and demand for payment
- The individual has neglected or refused to pay tax after prior notices
- A final notice of intent to levy is refused or neglected for at least 30 days.
- Then accordingly, IRS can charge you a levy, a legal seizure of your property for clearing out the debts you have against them.
There are several reasons why IRS tax levy is caused. One of the main reasons is the government’s need of revenue. The amount you provide as taxes is used for defence funding, for handling retirement programs, dealing with social security, providing healthcare, making interest payments or handling the economy in general. IRS levies taxes to ensure that you as citizens can get the best resources I the country.
On a specific level, the cause of IRS tax levy is non-payment or non-clearing of dues that you may have against the Internal Revenue Services. A levy is most likely to be charged when you fail to make tax payments and haven’t responded to IRS’ threatening letters, phone calls or dealt with your previously filed tax lien. Usually, these levies and liens provide you 30 day notice of intent, indicating that if you don’t respond and defend yourself, you will be entitled to a legal seizure of your property and assets.
Tax levies can be in the form of wage garnishment, one of the most popular types, wherein certain amount of your salary or wage is deducted every month till the dues are clear. The other types include bank account levy, where bank accounts are seized and the money is directly deducted for satisfaction of debts, through property seizure, the least common, last resort but most powerful method of collecting dues and lastly through social security garnishments wherein your retirement programs, savings or social security is broken to collect the dues.
Tax levies can add a financial constraint and act as a burden for your family and children. So, make yourself that you get yourself released from tax levies immediately by contacting a good tax negotiator, who can negotiate the levies, get their amounts reduced or come to an instalment agreement with IRS.
For more details visit here : http://www.taxnegotiations.com