The IRS engages in a variety of operations in order to collect debts owed to it by taxpayers. Tax levies are perhaps the trickiest to handle without all of them. Whenever the IRS seizes someone’s assets, it takes financial control of the property till the tax debt is fully paid.
You can avoid a tax levy by employing the following strategies shared by William D King:
Complete payment of the tax debt
The biggest and most important strategy to get a tax levy lifted is to pay the full amount owing to the IRS. If you already have the financial capability, you must settle the debt in full and ensure that your IRS account is balance-free. However, for some of us, paying off such a tax debt in full is difficult whenever the amount owed is excessive. It is usually preferable to pay a tax levy on a regular basis rather than allowing it to accrue.
File an appeal against the levy
The IRS gives you 30 days to file a formal appeal once it notifies you of its intent to levy an asset. Until a resolution on your tax situation is reached, the levy will be temporarily suspended. Submit IRS form 9423, which can be accessed on IRS.gov, to submit a formal appeal. The appeal may reveal anomalies in the IRS’s tax debtor management procedure, causing the IRS to reconsider its intention to seize its assets.
Make a request for a payment plan
Because it is impractical for many people to give out large sums of money, you might request an installment. By establishing an installment arrangement to pay off your debt, you may be able to get the levy lifted fast. An installment agreement allows you to pay the debt in monthly installments. William D King says that the payments are dependent on your income, ensuring that they are both affordable as well as practical.
Make a Compromise Offer
If you can’t afford to pay your entire tax bill, you might be able to settle it with an Offer in Compromise. An OIC allows you to settle your debt for a lower amount than originally owed. If the IRS accepts your OIC, the remaining portion of the obligation is forgiven. Make certain that the offer is reasonable and reflects the current value of your income or assets. You must pay a reduced amount & restore your IRS account to something like a zero balance after the OIC is accepted.
If you know how to fight an IRS tax levy, you’ll be in good shape. Along with that, you can also get in touch with an expert who can elaborate you on these ways in detail. If you want to be economically strong, then you must understand the taxes better, and only an expert can help you with that. So, try looking for the tax experts available online and get in touch with them.