Your heart stopped when you a received a letter from the IRS via certified mail.
It may have informed you about your impending Tax Levy, and your mind is racing with questions.
Will they go after your paycheck? Your bank account? Will all your savings be gone in a flash?
This post will help you prevent a Tax Levy and put your tax debt behind you for good.
They IRS sent me Notice of Intent to Levy! What do I do?
Don't worry, there's still hope. The IRS should not levy you if you get proactive about your situation and find a way to repay them.
Don't wait for the IRS to levy you. have a higher chance of being able to set your own payment terms if you act first and work with a professional to set up one of the following agreements:
IRS Installment Agreement: And Installment Agreement allows you to repay the IRS is set monthly installments. The IRS gathers the details on your financial situation and sets the amount you pay monthly based on what they think you can afford.
IRS Offer in Compromise: When you hear a late night TV commercial talk about settling your tax debt for pennies on the dollar, this is what they’re talking about. This program sounds almost too good to be true. It is real, but it is also the most difficult to get. Only 2% of applicants for an Offer even get approved.
Currently Non Collectible: "Currently Non Collectible" is a status used by the IRS when a taxpayer has no way to repay their tax debt. This is temporary suspension of collection efforts that allows the taxpayer to get their financial situation in order.
Innocent Spouse Relief: Typically, when your spouse owes the IRS, so do you! But in some cases, the IRS may forgive your portion of the Tax Debt through Innocent Spouse Relief. It's not easy to meet the criteria for Innocent Spouse, but it might be worth a try.
IRS Penalty Abatement: In cases where the debt was caused by circumstances you couldn't control (like a long hospital stay or a natural disaster) the IRS may remove penalties from your account, making it easier for you to repay your tax debt.
Powerful IRS Negotiations: My sincere recommendation is for you to get on the phone with a professional as soon as you receive a Notice of Intent to Levy from the IRS. You can negotiation from a position of power and set up the payment terms you want when you work with a pro.