What is an IRS Tax Levy and How to Fight it: New York City Tax Resolution Attorney Explains

Understanding How a IRS Tax Levy Works is the First Step to Fighting it: Learn Your Rights Here 

The Internal Revenue Service (IRS) has the power to seize your personal property in order to satisfy any debts that you may owe them by filing a tax levy.  Usually, the IRS will resort to this tool after several failed attempts to collect using other tactics.  Dealing with a federal tax levy can be complicated and stressful.  If the IRS has filed a tax levy against you, contact a New York City tax resolution lawyer to learn more about what you can do.

After the IRS files a tax levy against you, they are then able to take your personal property valued up to the amount that you owe.  Generally, you will first receive a notice of intent giving you around 30 days to pay the debt in full or negotiate a payment schedule.  Then, in the absence of payment during those thirty days, the IRS can reach your home, paycheck, bank accounts, cars, and much more.

In New York State, the IRS can also file a tax levy against a person in the event that the debtor does not respond.  In this situation, a third party, such as a bank, will be issued a tax warrant.  Here, the third party will then be required to pay off your debt with your own money and send the funds to the State of New York.  However, the following are some forms of income which New York State cannot reach in the event of a state levy:

– Workers Compensation;

– Disability;

– Alimony;

– Child Support Obligations;

– Public Assistance; and

– Unemployment checks.

How to Fight a Tax Levy

If you have had a tax levy filed against you, do not sit back and wait for your income to be seized.  Contact our New York City tax resolution lawyer to discuss several options available to you, such as:

– Payment plans: If you are an individual who owes less than $50,000 in tax debt (or $25,000 for a business), you may be eligible to enter into a payment plan for a fixed monthly amount.

– Offer in Compromise:  Here, the IRS will settle your debt for less than what you actually owe.

– Installment Agreements:  The IRS offers various different installment agreement plans depending on your particular financial situation.

– First Time Penalty Abatement: If eligible, you may be able to waive fees from failing to file or pay.

– Financial Hardship:  Unfortunately, the reality for many debtors is that they are unable to quickly pay off their balance in the event of a tax levy.  The IRS realizes this, and may release the levy in the event of immediate financial hardship.  Here, you will still be required to satisfy the debt.  However, the IRS will work out an agreement or payment schedule so that you will not face the economic struggles that a lump sum payment would create.  Once an agreement has been entered into, they will contact the appropriate parties in order to stop the levy.

Fighting a Tax Levy?  Schedule an Appointment With Us

There is a lot that goes into tax resolution and it can be a complicated maze with many pitfalls.  Call our experienced attorneys at Samuel & Stein today to learn how we can help you successfully navigate this matrix of tax laws and achieve financial freedom by dialing (646) 480-2149 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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