Charleston, SC, is a paradise for tourism and a must-visit place for travelers in the US. The stunning beaches, world-class restaurants, and historic sites make it an exciting place to live. One can forget about the hardships of life while living in the beautiful city of Charleston, SC, but like all things in life, this lifestyle doesn’t come without its price. Taxes in Charleston are 13th highest in the US and highest in the Southeast. It means that the resident individuals and businesses need to pay higher taxes than most other parts of the country to enjoy the lifestyle this city offers.
If not handled carefully, high taxes can result in a pile of unpaid taxes that accumulates as tax debt. Tax debt can create a lot of financial as well as legal difficulty for taxpayers. The IRS has a lot of tools at its disposal to collect taxes from taxpayers. After issuing notice and putting penalties, IRS put a lien on the property of taxpayers with outstanding tax payments.
A lien is a legal claim on properties or assets of taxpayers against the tax debt. If taxpayers don’t respond to property lien positively, the IRS moves to the next step. After issuing further notices to taxpayers, the IRS moved toward the legal seizure of taxpayers’ property to satisfy tax debt through the levy.
A levy can include (but is not limited to):
Wage garnishment
Take the money from the taxpayer’s bank account or other financial account(s)
Seize and sell the vehicle(s) that is registered under the taxpayer’s name.
Seize and sell real estate or other tangible and intangible assets.
The IRS sends a final notice through the IRS bill titled Final Notice of Intent to Levy, and Notice of Your Right to A Hearing. The best way to deal with levy notice is to act swiftly and correctly.
How to Avoid Tax Levy in Charleston, SC?
The most important thing you can do to avoid tax levy is to be proactive and pay taxes on time, and file tax returns well before the due date. However, if you are facing trouble with your finances, here are some to avoid extreme action by IRS;
Request an extension for filing and/or paying taxes.
Pay as much as you can.
Work with the IRS to get an Offer in Compromise option, which allows taxpayers to settle tax amounts by paying less than what they owe.
How to Release Levy?
If you are unfortunate to get an IRS levy, contact IRS immediately to release it. In most cases, the IRS releases a tax levy if you are satisfied that it is causing you economic discomfort.
There are some conditions under which the IRS is required to release the levy. Here is the list;
You paid the outstanding tax.
The collection period of tax was ended before the levy was placed.
Releasing the levy will prove to be helpful for paying taxes.
The levy is creating economic hardship for you, i.e., you are not able to meet basic living expenses.
The value of the property levied is more than the tax owed, and releasing the levy will not hinder the recovery of tax debt.
You make an agreement with the IRS to pay tax in installments.
Our verdict is that a tax levy can be released, but to achieve that, you must act swiftly and take the right steps. The key is to maintain a positive relationship with the IRS and don’t let them think that you are not planning to pay the tax you owe.
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Zee Maq is a content writer who specializes in writing business and finance content. She has nine years of experience and loves to provide problem-solving content to help people tackle challenges in their everyday lives.