11 Tips To Avoid An IRS Tax Levy | Flat Fee Tax Relief | Florida

11 Tips To Avoid An IRS Tax Levy

The Treasury Department of the United States has a well-earned reputation for being serious about collecting tax debt. The mere mention of its enforcement arm – the IRS, is sufficient to invoke anxiety and fear into the most honest of taxpayers. One reason for the trepidation generated by the IRS is that it has a potent arsenal of weapons at its disposal to pursue taxpayers who are in arrears, including tax liens and a tax levy.

Many people confuse tax liens and tax levies. While neither is desirable, a tax lien poses much less financial danger to taxpayers than a tax levy does. A tax lien represents an initial attempt by the IRS to collect revenues from taxpayers who have failed to either pay their taxes in full or to contact the agency to discuss viable repayment options. By contrast, by the time the IRS gets around to filing a Final Notice of Intent to Levy and Notice of Your Right to A Hearing, otherwise known as a tax levy, taxpayers are in imminent danger of losing valuable assets such as cars or homes to seizure.

Avoiding the dire consequences of a tax levy should be your focus. Fortunately, taxpayers who take expedient measures can frequently avoid enforcement by the IRS tax levy. Depending on the personal circumstances involved, it may be possible to dodge a tax levy long enough to contact the IRS with alternative arrangements – or even long term.

1. YOU CAN Request a 120-Day Extension

One of the few absolutely guaranteed ways to avoid a tax levy is to repay what you owe to the IRS in full. If you are here reading our material,paying the IRS in a lump sum is probably an option. Now, if you have a reasonable expectation of being able to repay your tax arrears within 120 daysrequest an extension from the IRS. Once you have made payment, the lien should be released within 30 days, which will automatically cancel the tax levy.

2. Negotiate an Installment Agreement

The IRS can less flexible about allowing taxpayers to extend payments over time when taxpayers try to negotiate their way through an IRS problem. In recent years, the IRS has changed its stance and actively encourages collaboration between agents and taxpayers. So, if you can pay what you owe within a reasonable time frame, generally six years or less, depending on your total balance in arrears, you may be able to avoid a tax levy by negotiating an installment agreement. If so, you need to act quickly to prevent the actual tax levy from going through.

3. SUBMIT an Offer in Compromise

An Offer in Compromise is a formal tax settlement that allows taxpayers to settle their tax debt by paying less than the full amount due. The Offer in Compromise process requires taxpayers to demonstrate that attempts to collect the full amount owed would present an undue financial burden or would otherwise be untenable. As might be expected, the standard for qualifying for an Offer in Compromise are strict, and taxpayers would be well advised to seek an experienced tax professional before pursuing this tax relief option.

IRS Settlement – Offer in Compromise Success

4. Demonstrate Non-collectible Status

If paying your back taxes – or the execution of a tax levy – would create severe financial hardship, you can seek what the IRS categorizes as Currently not Collectible (“non-collectible status).” Once your tax debt has been designated as non-collectible (Currently not Collectible), all attempts to collect a tax levy cease. The tax lien will remains on your record, and you must re-apply for “noncollectable status” 12 to 18 months. Please note that the Statute of Limitations will continue to run out on the collection time available to the IRS. So it is very possible that your tax debt will simply “vanish.”

5. File Chapter 7 or 13 Bankruptcy

Under most circumstances, filing either Chapter 7 or Chapter 13 bankruptcy places an immediate halt on all creditor collection actions, including tax levies. But filing a bankruptcy petition only stops a tax levy for as long as the petition is active. And especially if you file Chapter 7 bankruptcy, you may be required to relinquish personal assets anyway to obtain a discharge. We aren’t Bankruptcy Attorneys so we aren’t going to give you bankruptcy advice. What we can tell you is this, should any of your tax debt not be discharged with a bankruptcy, the IRS will come after you 30 days following a dismissal or discharge.

6. Petition for Innocent Spouse Relief

If you filed a joint tax return with your spouse, you are generally jointly liable for any and all tax obligations. But under limited circumstances, it may be possible to escape a tax levy if you can demonstrate that your spouse is individually responsible for being in arrears with the IRS. Qualifying for Innocent Spouse relief is extremely tough, with strict requirements in place. Many tax professionals don’t even like doing an Innocent Spouse petition because the outcome will probably be “less than desired.” If you believe you qualify, you would be well advised to seek the services of an experienced tax professional in preparing your petition. Our team at Flat Fee Tax Relief has found through the years that most people have a better chance to settle their debt through an Offer in Compromise.

7. Appeal the Notice of Levy

If you legitimately believe that the IRS has mistakenly imposed a tax levy against you, it is imperative to contact the agency by phone immediately to request an appeal. You must also follow up the phone call with a written petition to appeal the tax levy. It is your legal right to appeal a tax levy, and doing so will stop the process while your appeal is being processed.

8. Allow the Statute of Limitations to Run

The IRS is limited by statute on the amount of time that a tax lien is allowed to stand. The Statute of Limitations is usually 10 years from the date of assessment. If the statute of limitations expires before the IRS imposes a tax levy, you are officially off the hook. But this is a very risky strategy, especially since the IRS may simply impose a new tax lien against your account. It is possible to play a “cat and mouse game” with the IRS but do not try this strategy on your own. On the other hand, if you can demonstrate that the statute of limitations has ALREADY expired, your odds of escaping a tax levy improve significantly. Do not attempt this approach without expert legal advice.

9. Claim IRS Procedural Error

This is a possibility but in all sincerity, saying a “Hail Mary” would be better than doing this. In most cases, taxpayers receive multiple warnings before the IRS executes a tax levy. But sometimes mistakes are made. If you can demonstrate that you did not receive sufficient notice of a tax levy, or that the IRS committed some other procedural error in assessing your account, you can request a Collection Due Process hearing, which will halt a tax levy for 30 days after the date of the hearing. The only thing the IRS must prove is that their Notices were sent. The IRS is under no obligation to ensure that you receive the notices.

10. File a Request through the Collection Appeals Program

If you are not satisfied by the results of an appeal or a Collection Due Process hearing, you may file a petition for under the Collection Appeals Program before a tax levy has been executed. You may also file a petition to recover assets such as bank accounts or wages that were wrongfully seized by tax liens under the Collection Appeals Program. But if seized assets such as a home or a car have already been sold, you are pretty much out of luck.

11. CALL FLAT FEE TAX RELIEF TO STOP AN IRS TAX LEVY IN ONE DAY.

Flat Fee Tax Relief has been providing this very valuable TAX LEVY RELEASE service for more than a decade. Our tax professionals and IRS problem solvers were the very first tax relief company to offer this. When our competitors saw how successful we have been, they followed. Flat Fee Tax Relief has always been the Leader in both tax levy release and with tax settlements through the Offer in Compromise program.

This article is brought to you by the tax professionals at Flat Fee Tax Relief who have been providing valuable IRS tax debt help at a very affordable fee for more than a decade. Our teams are located in Clearwater, Florida, and San Diego, California which allows us to be available to our clients and the IRS from 8 A.M. Eastern to 6 P.M. Pacific time.

FLAT FEE TAX RELIEF – FLAT FEE TAX SERVICE
1-866-747-7435

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https://www.flatfeetaxrelief.net

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IRS Tax Debt Help | Debt Forgiveness | Flat Fee Tax Relief | Florida

What Is the IRS Debt Forgiveness Program? IRS Debt Help?

Even the IRS understands “stuff happens” happens. That’s why the agency offers IRS debt forgiveness (IRS debt help) when you can’t afford to pay your tax debt.

Remember this, the IRS has 2 goals: collect money and close cases. Under certain circumstances, taxpayers can have their tax debt dramatically or partially forgiven. When the IRS considers forgiving your tax liability, they look at your present financial condition first. This means the IRS can’t collect more than you can reasonably pay. If any collection action would force you into a financial crisis where you lose all sense of financial security, the IRS can’t collect your tax debt.

IRS Tax Debt
IRS Tax Forgiveness

Know What You Owe – Know What You Qualify For

Before applying for IRS programs, find out how much in taxes you owe to the IRS. Knowing what IRS forgiveness programs you qualify for and how much you currently owe is vital when it comes to asking for IRS forgiveness.

There are many different ways to find out how much you owe, including checking online through the IRS’s new portal, calling the IRS, mailing the IRS a form, or having a tax professional do the research for you. The advantage to having an tax professional look into your IRS problem is this: the IRS won’t be asking you questions which you would be obligated to answer. No matter how you figure out how much you owe in back taxes, you’ll need to know before seeking forgiveness. 

The IRS has many many rules. How much you owe is among the different rules that they have. It is important to know how much the tax debt is in order to to attack the IRS problem.

Be on the Lookout for IRS Collection Actions

If you can’t pay but you haven’t reached out to the IRS for forgiveness or assistance, you should still expect them to begin taking collection actions against you. These actions can range from seemingly benign, like loads of notices in the mail, to very aggressive, like private debt collection agencies getting involved and tracking you down.  You could also find that your passport is at risk due to tax debt.

Some of the IRS’s often-used collection actions include:

 Tax Lien – Federal Tax Lien – A tax lien is an IRS claim against your property, which will secure their interest in your assets if you fail to pay your tax debt. It’s kind of like “an insurance policy.” It is what we call a “passive collection.” Unlike a tax levy, a lien doesn’t mean your property will be taken immediately. However, you’ll still need to address the tax lien. Not only can a tax lien keep you from selling your property, but it can also snowball into a more aggressive action in the future. Once again, depending on how much the tax debt is, tax liens are regulated by the tax debt owed.

Tax Levy – IRS Garnishment – Bank Levy – Wage Garnishment

tax levy is the agency authority to legally seizure of your property to satisfy your outstanding unpaid tax debt. You should have been sent a notice of levy from the IRS, which will let you know that they are planning to pursue levying actions against you. 

A tax levy can be placed on personal property like your home, car, or boat. They can also be placed on your assets, like your bank funds, tax refunds, and wages. 

A Wage garnishment is a type of tax levy in which the IRS will take part of your income in order to settle your existing tax debt. The IRS will order your employer and will continue garnishing your wages until your tax debt is paid or other arrangements are made to pay your tax debt.

Pay Less Than You Owe with Offer in Compromise

After paying your “allowable expenses” (everyday expenses), if it can be shown that you cannot pay the entire tax debt, you should apply for the IRS government payment plan called an Offer in Compromise (OIC) to settle your tax debt. Depending on your financial capacity and upon acceptance, the IRS significantly reduces the total debt that you can pay. This reduced amount can be paid in a lump sum or in fixed monthly payments.

The tax professionals at Flat Fee Tax Relief, have a 96% Offer in Compromise approval rate. while the IRS overall approval rate is approximately 42%. Our team members know how to shepherd an Offer in Compromise submission toa successful conclusion.

The IRS considers your ability to pay, income, expenses, and asset equity when determining your eligibility for an OIC. While it can be a life-changing tax resolution for many people, the IRS doesn’t give an Offer in Compromise easily.

Offer in Compromise – Tax Settlement

See If You Qualify for the
IRS Fresh Start Initiative

To make it easier for taxpayers to qualify for an OIC, the IRS has expanded their Fresh Start Initiative.

These changes to the Fresh Start initiative make it easier to afford your IRS tax payments. Now, you won’t have to disclose extensive financial details to the IRS to judge your paying ability. 

  • Instead of looking at five years of future income to determine reasonable collection potential, the IRS now looks at only one to two year of future income for offers, depending on the payment period. 
  • Taxpayers are now allowed to make their student loan minimum payment for post-high school education loans guaranteed by the federal government.
  • Taxpayers may, under certain conditions including financial hardship, pay delinquent federal and state or local taxes in monthly installments if they cannot pay it in full.
  • The IRS has expanded the Allowable Living Expense standards. This allowance now includes credit card payments, bank fees and charges, and other various allowances.
  • The IRS has doubled the dollar threshold for taxpayers eligible for Installment Agreements, which will help more people qualify.
Free Consultation

The tax professionals at Flat Fee Tax Relief has been providing valuable IRS tax debt help at very a very affordable fee for more than a decade. Our teams are located in Clearwater, Florida, and San Diego, California which allows us to be available to our clients and the IRS from 8 A.M. Eastern to 6 P.M. Pacific time.

NOW IT’S ALL UP TO YOU.

FLAT FEE TAX RELIEF – FLAT FEE TAX SERVICE

1-866-747-7435

LOCATED IN CLEARWATER, FL AND SAN DIEGO, CA.

NATIONWIDE IRS TAX DEBT HELP

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