An IRS levy is a severe consequence to many common IRS problems such as late settlement of taxes. In order to satisfy a taxpayer's unpaid penalty or debt, the IRS can empty bank accounts, seize property, or garnish wages with a levy. The IRS can levy your retirement accounts, rental income, your car, or your house. Upon receipt of a Levy Notice, you must act fast to prevent these financially crippling and drastic methods.

The first step to stopping a levy is to get the assistance of a tax attorney. You should disclose any settlement notices received from the IRS when you meet with the lawyer. Taxpayers usually receive a Demand for Payment statement from the IRS prior to being issued the Levy Notice. Why this Demand for Payment was not satisfied will have to be justified. There are many valid reasons for this, such as IRS processing errors, financial hardship, or bankruptcy, but you have to have proofly that clearly explains why the taxes or penalties have gone unpaid.

Ignoring an IRS Levy Notice is the mistake numerous citizens commit. You can get assistance and advice in requesting a Collection Due Process hearing at the local IRS Office of Appeals from a tax lawyer. If you've settled your taxes and were levied because of an IRS error, you can give proof that the IRS committed a mistake in the hearing.

The IRS can't enforce a levy for several reasons like filing for bankruptcy and immediate settlement after the Levy Notice. Because of the statute of limitations, taxes assessed over 10 years ago can't be collected by the IRS. If the IRS levy was mailed after the expiration of the tax collection period, you do not have to pay your taxes.

The Collection Due Process hearing is also a chance to work out an installment plan for paying unpaid taxes. You will have to work out a payment plan with the Office of Appeals if you are not able to pay the entire amount of what you owe the IRS. As opposed to a levy of your bank account or garnishment of your wages, an installment option is absolutely less of a problem financially.

The IRS will enforce the levy, unless your debt is settled, it it's released officially, or the statute of limitations is met. If you file for refund within 30 days after the IRS mistakenlyly levied your bank account, your bank charges will be refunded.

Your IRS problems will just increase if you ignore a Levy Notice. To protect your assets, it's best to seek quick assistance.