Sunday 14 August 2011

Tax Levy Information

By Adam Godoi


When it comes to tax levy information, you want to understand the severity of the situation. A tax levy stands out as the IRS's most deadly weapon and are generally the most economically debilitating. This means the IRS will in fact take your property based on your back tax responsibility. A tax levy can lead you to get rid of your checking and savings account, investments, IRAs, accounts receivables, inheritances due to be gotten, social security, pension, insurance plans, or anything else that you own that bears equity.

For those who have past due back taxes and haven't cooperated with the demands of the IRS to generate the payments of the tax amount owed, it is likely that eventually you'll be given a tax lien accompanied by a tax levy. The tax levy shouldn't come as a surprise because you probably were given many frightening IRS letters, phone calls, had a lien placed on your assets and ultimately you would have obtained a one month notice of plans to levy or seize your assets. If you have disregarded all prior notices, this is the one that you should not ignore because this is your last chance to take action and establish a repayment plan, offer an offer in compromise or pay your tax debt due to the IRS before you lose your assets.

Thirty days after you receive your final letter of the intent to levy, the operation will commence where the IRS will act on seizing possessions. To accomplish this, the IRS sends out notices to any third parties that they presume could be paying you such as your bank or your employer. These announcements say that they need to pay the IRS rather than you. Any time these third parties get these notices, they will just about 100% of the time respect them since if they don't, the IRS will hold them personally liable for the sum that they could have accumulated from you had they honored the notice.

Depending upon your finance and tax circumstances the IRS will make a determination of which type of levy to implement. The most common form of levies are wage garnishment and bank account garnishment but the IRS is not going to rule out physical asset seizure if they don't feel they can regain the unpaid taxes via wage or bank account garnishments.

Wage garnishment is the most prevalent form of IRS levy. Under this form of levy, the IRS makes a person's employer subtract out a certain amount of money from each pay period to go toward unpaid taxes.

With a bank levy, the IRS can access your bank accounts to keep track of them and take money from them so that they can fulfill tax debts due. The IRS will carry on and seize what money it can until they have gathered enough money to cover the entire quantity of taxes due.

This is the most uncommon levy approach made use of by the IRS. This is usually the last resort the IRS makes use of with an uncooperative individual. The IRS can take private assets such as a house, trailer home, boat, cars and just about anything else aside from a short list of items they can't legally take.

This is a less frequent tax levy or garnishment strategy used by the IRS compared to other levies. The IRS can garnish as much as 15% of Social Security with the Automated Federal Payment Levy Program (FPLP), and manually the sky is the limit on what they can garnish.




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