The IRS can
swiftly impose a tax levy when a taxpayer doesn’t respond to their payment
requests. Assets that can be levied to satisfy a tax debt include wages, bank
accounts, retirement income, and security benefits, among other things. Even
properties such as a house, car, or boat can be seized.
The tax levy
process begins when the IRS sends you a notice and demand for payment and a
final notice of the intent to levy. After that, you will receive five letters
from them that signal the start of the collection process, which are as
follows: CP14, CP501, CP503, CP504, and L1058/LT11. If you fail to respond to any
of these letters, the IRS may impose the levy.
If you
receive any of these letters, it’s important to respond to them quickly. Tax
problems never go away, so your best option is to deal with them as soon as
possible. If you disagree with the IRS’ assessment saying that you owe them in
back taxes, you must provide proof that they are in error. However, if the case
against you is strong, you’ll have no choice but to pay the back taxes. Doing
otherwise will only lead to your problem worsening.
When dealing with
the IRS, it’s best to have a capable tax lawyer to represent you—someone who
could negotiate on your behalf and help you pay off your debt in monthly
installments or with a reduction agreement.
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