The IRS Is About to Levy Your Business or Property: What Do You Do?

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The burden of tax debt is devastating enough on its own, but IRS penalties can add considerably to the pain of this ordeal. Levies, in particular, are devastating, as they can impact your wages, bank accounts, or other income and assets. In rare cases, the IRS may even go after taxpayers’ homes.

The prospect of a levy is scary, but you aren’t completely powerless. The sooner you take action, the sooner you can resolve stressful IRS issues and move forward with your life. Keep the following in mind as you prepare to deal with the IRS:

Seek an Extension, Payment Plan, or Offer in Compromise

If you already know that you owe the IRS a balance, you could potentially avoid a levy by getting in touch with the agency and obtaining an extension or payment plan. This will grant you a little extra time to pay down your tax debt, and hopefully, avoid a levy altogether. In select cases, currently not collectible status may also prove a viable option. Further, Offer in Compromise is a great strategy to deal with a tax burden.

Seek an Appeal

If you believe a levy has been issued in error, don’t hesitate to contact the Office of Appeals. You may be eligible for a collection due process hearing, or collection appeals hearing.

Request a Levy Release

What happens if the above efforts fall through — or if you’re too late to avoid a business or property levy? You may be eligible for a levy release, which is available to those who can prove they’re suffering immediate economic hardship due to levies. Release request denials can be appealed.

If you suspect that an IRS levy could be in your future — or if you’re currently suffering the fallout from a levy — it is critical that you get in touch with a tax expert. Look to the Highland Tax Group for assertive advocacy. Contact us today to learn how we can mitigate the risk of a levy or other penalties. We can be reached at 720-398-6088.