Tax debt is a very common problem in America at the moment, and it's trickier than many other kinds of financial issues. You can't simply have it written off during a bankruptcy because many types of tax debt are considered essential, just like alimony and child support. One of the ways the IRS can collect the outstanding amount is an IRS bank levy. Fortunately, tax resolution services can help you to stop such a process and regain control.
There are several different ways of addressing this kind of problem. If you genuinely cannot pay the IRS any money without experiencing severe financial hardship, you might be able to file for "Currently not collectible" status, which means that all action against you will cease. However, this isn't always possible, particularly if the IRS believes that you can pay part or all of what you owe. Let's go through some of the ways you could get some relief.
Before you can start to figure out how to resolve your situation, you'll need to work out what is actually happening. A bank levy is a process during which the IRS can legally seize hold of your bank account and prevent you from using the funds inside it. Once the process starts, you'll have 21 days to do something about it before your money is given to the IRS by your bank.
The purpose of this process is to raise the funds you have neglected to pay. This could include back taxes and also the fees or penalties you have accrued due to filing or paying late. Although this is a very serious issue, you can prevent it from happening by working together with your tax resolution specialist.
If you're facing problems with the IRS, you might wonder what else they can do in addition to your bank levy. In fact, there are many different ways they can get a hold of the money you owe them, and some of these pose a considerable risk to your life and your family. For example, they can garnish your wages, which means that a part of the money your employer pays you will go directly to the IRS.
What's more, they can even seize your property, such as your home and your car, and sell it to pay off the debt. These methods are only implemented in extreme cases, and you should speak to a specialist well before you risk losing your primary residence and other assets.
Now you understand what a tax levy is and why it can occur, you'll need to figure out what to do about it. As mentioned, the first thing you should do is get in touch with your tax resolution professional, who can evaluate your situation and help you figure out how to move forward. They will recommend one or more measures that can help you reduce your tax burden or spread out your payments to make them more easily achievable.
A tax specialist knows all the rules and regulations that govern taxes, so they are the best person to speak to about this issue. As soon as you are notified that you might face a bank levy, you should get in touch. There is still some time to resolve the situation and prevent this from happening. When you call your specialist, they will ask you to come to an initial consultation and discuss the situation.
You should bring all relevant documents, such as past tax records, your income, and your expenses, and answer all their questions thoroughly. They will then give you some more information about what kinds of solutions are out there and how you can prevent your assets from being seized.
One of the easiest methods of preventing the IRS from taking your money is to get "Currently not collectible" status. This means that you are unable to pay any money towards your tax debt at the moment, either because you don't have an income at the moment or because your expenses exceed your income. If you are in genuine, serious financial trouble, this might be the best option for you.
However, it's important to note that you may lose your status in the future, when your income increases again. At that time, you will still be liable to pay the tax you owe, as it can't be written off. For this reason, "Currently not collectible" status is only a temporary fix, and you should work on a longer-term solution with your specialist.
Another great way to significantly reduce your burden and stop an IRS bank levy is to make an offer in compromise. Essentially, you are telling the IRS that you can only pay part of your taxes and asking them to write off the rest.
Unfortunately, it can be challenging to convince them that you are truly not able to pay the full amount, and not all offers in compromise are accepted. The tax resolution services you have employed can let you know the likelihood of success, so you can make an informed decision about whether this is a real possibility for you.
Since the IRS would like you to pay the full amount, they are often willing to offer you some more time to make your payments. Together with your professional, you can have a look at your budget and finances and then come up with a realistic way to pay off what you owe.
Once you submit this to the IRS, they can then let you know whether they accept your payment plan. Because you'll still be paying off your entire tax debt, your likelihood of this offer being accepted is much higher.
Finally, you may not only be facing tax debt, but also the fees and penalties that the IRS has added to your account because you filed or paid late. These can amount to more than 25% of your total bill, and they add up quickly because interest is calculated on a daily basis. An easy way to reduce your debt is to have these fees removed. If you've never had any issues with the IRS in the past, this is a realistic endeavor, and you shouldn't have too much trouble.
An IRS bank levy is a serious issue because you'll lose all your assets in the bank. What's more, there are several other ways your tax debt can be collected legally, and all of them can affect your life in a negative way. Getting help from tax resolution services is often the best way to stop this process and make sure you keep your bank account within your own control.
A great tax resolution specialist will be able to help you figure out what type of relief you're eligible for and how you can access it. You might be able to defer your tax payments, pay only a fraction of what you owe, or create a more realistic repayment plan. What's more, your fees and penalties could be scrapped, which can lighten the burden considerably. Get in touch with us now at Tax Alliance in Santa Ana, CA to get started and speak to a professional.
Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!
If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked!
You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.
Because of advancements in our technology, we are able to communicate with the IRS electronically, its as if we are in the same office! Faster service and more cost effective!
If you are not happy with our tax services within the initial 21 days, we will give you a 100% refund of services rendered, no questions asked! We help our clients nationwide!
You find it, we will match it! Tax Alliance will match and beat (by 10%) any competitive offer. Contact our office today and receive a free no obligation tax consultation.