A tax levy happens when the IRS takes control of your properties in order to pay for your debt. The law writes that the IRS does not have to take action in a court in order to be approved for their decision. Additionally, the IRS is permitted to take any type of property that you have in replace for a payment. This means that property, such as a house, vehicle, or anything of actual value can be used as a settlement for your debt.
The IRS is permitted to trade your property so they can reduce your debt or the amount you owe. Another alternative is that the IRS can subtract money from your earnings and wages to get their payment. Regardless of if you have access to money from loans or you have a life insurance policy, the IRS is capable of gaining money from these elements to ensure that you pay the full amount that is owed for your taxes.
It must be noted that this does not mean that the IRS is seeking taxpayers that can levy for access to funds. A levy only happens when the individual seems to be avoiding making payments. Firstly, the IRS will contact you and explain that a payment is owed for your taxes. If you disregard the initial contact, they will try to get in touch with you again. If it seems that you are deliberately ignoring them, they will send a notice explaining to you that they expect to levy you and notify you about a hearing that you can go to within 30 days. During this time, if you do not take action, it is guaranteed that you will be levied.
In most cases, the IRS will want to work with you rather than contacting you about the tax levy. The use of a levy only occurs if it appears like you are intentionally avoiding making payments or you have refused. There are other cases where you may be given a levy notice but no action is actually taken against you. For instance, if you are given a notice but you have already made all of your payments, you are not likely to have to deal with a levy. Additionally, if the IRS has made mistakes in determining the levy, there is not a great chance that it will truly happen.
The IRS is permitted to trade your property so they can reduce your debt or the amount you owe. Another alternative is that the IRS can subtract money from your earnings and wages to get their payment. Regardless of if you have access to money from loans or you have a life insurance policy, the IRS is capable of gaining money from these elements to ensure that you pay the full amount that is owed for your taxes.
It must be noted that this does not mean that the IRS is seeking taxpayers that can levy for access to funds. A levy only happens when the individual seems to be avoiding making payments. Firstly, the IRS will contact you and explain that a payment is owed for your taxes. If you disregard the initial contact, they will try to get in touch with you again. If it seems that you are deliberately ignoring them, they will send a notice explaining to you that they expect to levy you and notify you about a hearing that you can go to within 30 days. During this time, if you do not take action, it is guaranteed that you will be levied.
In most cases, the IRS will want to work with you rather than contacting you about the tax levy. The use of a levy only occurs if it appears like you are intentionally avoiding making payments or you have refused. There are other cases where you may be given a levy notice but no action is actually taken against you. For instance, if you are given a notice but you have already made all of your payments, you are not likely to have to deal with a levy. Additionally, if the IRS has made mistakes in determining the levy, there is not a great chance that it will truly happen.