Levy is among the most extreme steps that the IRS may take to recover tax liability. In simple terms, it means that your property or bank accounts are seized by the IRS. For that, the IRS initially puts a lien on your property and later seizes it. The IRS shall send you various notices before taking this step.
It typically happens when one seems unwilling to pay or find a solution to the liability. Nonetheless, it is surely a highly undesirable situation one may find themselves in. Luckily, you can still take various steps to remove such levy.
7 Ways To Remove IRS Levy In Santa Clarita, CA
1: Pay Your Bill
It may seem obvious, but it is the only way to get out of the situation in many cases. Remember that you cannot avoid paying taxes as long as you have the last penny. So, make efforts to find means of paying the IRS.
At the very least level, show your complete willingness for paying taxes.
Make visible efforts and try to pay maximum if you cannot make a full payment at present.
2: Cooperate Throughout
Before putting a lien or imposing levy on your property, the IRS shall send various notices. Make sure to cooperate with the taxman at all levels.
Tell them the real situation, and make all requested documents available.
Also, respond to the notices, depicting a true and fair picture of your financials. By doing so, you may be able to delay the levy, if not completely avoiding it.
3: Request an Offer in Compromise
An Offer in Compromise (OIC) may be granted to you if you truly deserve it. It is a means of settling your tax debt for less than the actual amount. Present a fair offer considering your existing financial situation.
You may not be left with much money by the end of it, but you’d still have your property. But before that, you need to have filed all your tax returns.
If accepted, make sure to pay the promised lump sum amount of time to avoid further wrath of the IRS.
Also remember that you cannot request for an OIC if you have already filed for bankruptcy.
4: Request a Payment Plan
A payment plan has more chances of getting accepted by the IRS than an OIC. It simply allows you to pay off your debt in installments instead of a lump sum money.
You’d still be accruing interest on the remaining amount, but you’d be decreasing the liability with every installment.
5: File Bankruptcy
Bankruptcy filing doesn’t always work, but it may be your last option. You can get rid of your tax debt with a successful bankruptcy. However, it can be a very long and tiresome process.
It also involves various rules and considerations. So, make sure you are aware of all these things before choosing this drastic step.
6: File an Appeal
You may also file for a collection due process hearing to review lien or levy on your assets.
This may buy you some time, but won’t waive off your tax liability.
7: Hire a Tax Relief Attorney
You need to carefully analyze all options before choosing one. It is recommended to get yourself a tax relief attorney to walk you through various options.
You need to understand the implications of IRS levy and all options available to you.
The key at this point is to make an informed decision to receive the most suitable outcome. Getting professional help can go a long way in making a better case in front of the IRS.
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