Tax Levy Truths That Will Prevent Property Seizure

It’s time to learn the truth about a tax levy so that you can prevent your property from being seized.

Show the IRS the Property Seizure was Inappropriate

Tax levy property seizures are one of most difficult to reverse. One way to stop the seizure is show the IRS the seizure was inappropriate and that you have an alternative plan that would result in the IRS receiving its payment.

Lack of Equity Stops Tax Levy Property Seizure

You can stop the property seizure by showing the IRS your home does not have enough equity to cover the tax levy.

Propose an Installment Agreement

The IRS cannot impose a property seizure as result of a tax levy if you have proposed an installment agreement and that agreement is pending. Furthermore, the IRS cannot seize your property for 30 days after the rejection of that installment agreement.

Appeal the Installment Rejection

The IRS is not allowed to implement a property seizure if you appeal an installment plan rejection. As a result, even if your installment proposal is rejected, you can stop the seizure by appealing the IRS decision.

Prevent Property Seizure through Bankruptcy

The IRS cannot seize property that is part of a bankruptcy procedure unless, in the rare case, a bankruptcy court authorizes such a seizure.

Keep Your Tax Bill under $5000

The IRS cannot do a tax levy property seizure if you owe $5000 or less.

Principle Residence

The IRS cannot do a tax levy seizure on your principle residence unless they appeal to the court and the court approves it. The appeal can take quite some time and can provide you with time to rectify your tax woes.

Transfer Ownership of Your Property

It is tempting to transfer ownership of your property to someone else to prevent the IRS from seizing your property. The transfer must occur some time before the tax levy property seizure occurs.

However, the transfer is likely to be unsuccessful because the IRS will probably be able to show that the transfer was in an effort to protect your assets from the IRS.

Setup a Partial Payment Agreement

Setting up a partial payment agreement is similar to setting up an installment agreement. The difference is that, under partial agreement, the payments you make will be much smaller and the total amount paid under such an agreement is usually only a percentage of the original tax amount.

Submit an Offer in Compromise

Submitting an offer in compromise immediately halts collection action until the offer has been reviewed and is either accepted or rejected.

These tax levy truths should prevent your property from being seized.
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