How Tax Levy Disputes Work



If you have failed to properly satisfy a tax debt, the state has the right to enforce a levy. A levy is a legal seizure of property. If you do not or are not able to pay your taxes/to make arrangements to settle your debt, the IRS is also entitled to sell off this seized property in order to satisfy the debt. This is why as a business owner or a private entity, it is imperative to file your yearly income taxes. Keeping track of your expenses and writing them off correctly will minimize the risk of facing a levy. Levies are oftentimes irreversible, especially if misconduct has taken place. However, many people believe they have been inaccurately slapped with a Tax Levy. In cases such as these, it is possible to dispute the levy and reclaim your property/funds.

However, it is nigh on impossible to carry out this process by yourself. The legalities of a levy and the intricacies of financial law are fundamental to resolving your issue successfully. Therefore, specialists in dealing with levies are highly advisable before proceeding. These professionals can respond to the IRS directly in regards to the levy on your behalf and negotiate any reversals that may be available.

If you believe the levy occurred in error, that something was accounted for on the IRS end, then it is important to provide the necessary proof and evidence that you have, in fact, paid the debt in full. Helpfully your tax professional will be able to properly present your evidence of payment to the IRS, which may include a money order.

If the relevant tax has been paid in full but does not line up with your tax return, then it is important that you immediately amend your tax return. From there, you should send a copy of the amended tax return. Any deductions can help reduce the amount owed to the IRS. It is important to keep the IRS notified of any changes and amendments as they may still seize your property/funds until their paperwork has been filed and your tax returns have been documented.

If you are suffering financially or facing hardship, the IRS may be able to lift a levy and restore you with your property or funds. If this is the case, provide them with your full income reports, this is something that you will be able to go over with your attorney. You may be entitled to a levy release if you are behind in certain payments such as housing or if your monthly expenses exceed your monthly income. It may even be suggested that you notify your bankruptcy to the IRS if you or your business have recently been declared bankrupt. You will receive automatic protection from liens and levies.

However, a levy should be avoidable at all costs, and so should disputes. Levies are usually the last resort. If you own a business or are a private entity, it is important to prevent collectors from coming to seize your property, to begin with. That is why you should visit Creative tax to ensure you get out of any situation with minimal losses.