A federal or state tax levy is a method the IRS uses to satisfy a debt of tax through the legal seizure of your property. It is important to note that a tax levy is different from a tax lien. A lien is a claim to obtain security interest in your property for the tax debt; a levy is the actual taking of that property.
The IRS can then subsequently sell any type of real or personal property that you currently own, will own in the future, own but in the possession of a third party, or any property you have an interest in to satisfy the debt.
The IRS will impose a tax levy on you if you do not pay your taxes or you fail to make some kind of payment arrangement with the IRS.
A tax levy should never be unexpected. Before the IRS imposes a tax levy on any of your property, they will attempt to notify you via phone calls, letters, liens and a 30 day Notice of Intent to levy. The final notice will generally be delivered to you in the mail or left at your home or work.
In the case of a tax levy, you may ask that an IRS manager to review your case. Another option is to request a Collection Due Process Hearing to preserve your right to go to court for a hearing with the Office of Appeals. In order to do this, you will need to file a Collection Due Process document with the IRS office, indicated on the Notice of Intent to Levy you received.
You only have 30 days from the date on your notice to file any request for appeals, so if you decide you want to fight the levy you need to obtain the services of an experienced tax advocate at Tax Resolution to start the process.
Unfortunately, in practice, the chances of reclaiming possession of levied property are very slim. However, once the levy is released, the IRS will no longer seize property. When you are trying to release a levy, there many ways to go about it. Schedule a free consultation with one our tax advocates at Tax Resolution to get help with a tax levy today.