Tax Wage Levy: Tips To Get It Removed

Tax wage levies can be a source of embarrassment and frustration. Tax wage levies occur when you have taxes outstanding and are issued by the IRS or the state. They can affect your credit rating and standing with an employer and cause a financial hardship. When the levy is filed, money from any bank accounts, government benefits and retirement funds can be ceased to satisfy the levy. Businesses can have their accounts and assets ceased in order to meet their unmet liabilities.

Improperly Filed Tax Levy
Determine whether or not the tax levy is appropriate and applies to you. There are many erroneous filings. if the filing is incorrect, you will need to contact the IRS or taxing authority and request that the levy be removed.  If any monies have been ceased as a result of the levy, you will need to engage in a claim process to reclaim the ceased assets. A tax attorney may be required to properly interpret the law.

Receiving a Notice of Tax Levy
The IRS or state will typically provide you with a notice of tax levy prior to commencing with any action. This notification provides you with an opportunity to address the nature of the levy and determine if the amount being assessed truly reflect your situation.

When you receive a notice of tax levy, you should immediately contact a tax accountant or lawyer to assess your situation. You should not file the notice away without taking some action or making contact because inaction will result in the levy being applied and money being taken from your accounts.

Negotiate with the IRS or State
A tax attorney or accountant can also assist you with setting up a payment plan or negotiating with the taxing authority. This may be necessary to help you find a mutually agreeable arrangement to prevent the levy from being applied or having it removed from your records. This negotiation should provide you with an opportunity to learn the severity of your situation and take steps to prevent such a situation from occurring again.

Pay the Levy
The final way to address a tax levy situation is to pay the amount in full as soon as possible. This will remove the levy and eliminate the need for any process that involves taking money from your paycheck or an attachment to your benefits.  Use whatever funds or assets to address a notice of levy before it is attached to your records. You may have to borrow money or find a loan to pay the levy. Weigh the benefits closely, examine loan rates and determine the interest on the IRS penalty.  The loan rate should be lower, otherwise, it may not be the best alternative.
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