Monday, June 1, 2015

The Beginning of the Tax Levy Process

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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