Tax Relief Starts Here
Stop IRS Levy: Guide to Release a Tax Levy & Stop Collections
If you owe tax debt, the IRS can legally take over your property to satisfy what you owe them. The IRS can take over and sell physical items like your car, house, boat or camper in order to recover money for tax debts you owe. With a tax levy, the IRS can also levy for your wages, bank accounts, retirement accounts, dividends owed to you, rental income, cash value of life insurance, commissions, bonuses, and accounts receivables owed to you. In short, the IRS is one bill collector you don't want to ignore because they have the power to take pretty much anything you have to satisfy debts owed to them!
When Will the IRS Levy?
Three requirements must be met before the IRS will begin a tax levy – you must have received a Notice and Demand for Payment; you must have neglected to pay; and you must have received a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before a tax levy begins.
How to Stop a Tax Levy
If you've received an Intent to Levy Notification – you need to take action to prevent the IRS from seizing your assets. If you receive the final notice, they will take action in 30 days. The IRS does not actually want to use a tax levy to recover debts – it's an expensive and last resort debt collection method the IRS uses, in hopes that the notice will scare taxpayers into paying or making arrangements to pay their tax debts.
Here are your options for stopping a tax levy from happening: