When one thinks about how the IRS tries to recover delinquent taxes, 2 usual ways spring to mind. An IRS levy and an IRS tax lein. Many believe these to be one and the same, however they happen to be very different.

An IRS tax levy is a seizure of personal assets to pay a tax balance. However, a tax lien safeguards and secures the government\’s interest in a property and any legal rights to property. A tax lien will not actually seize the property. It usually, goes into effect at the sale of the property. At the time of sale, the IRS has rights to the proceeds of the sale. Whereas an IRS tax levy in fact seizes the personal property.

Before the IRS can collect, normally three specifications must be met:

1. The IRS assessed the tax and sent a Notice and Demand for Payment.

2. The individual ignored or declined to pay the tax bill.

3. The IRS sent a \”Final Notice of Intent to Levy and Notice of Your Right Hearing\” a minimum of 30 days before the levy. The IRS can place it at a home, a place of business or deliver it to the last known address that the IRS has on record.

There are four typical types of levy sources for the IRS:

1. Bank Account: When the IRS takes money directly from your bank accounts. One generally wont know of it until it has actually happened. The bank will be required to freeze the funds up to the amount owed on the day the tax levy came. The bank is required to send the funds to the IRS after 21 days if the levy has not been released.

2. Wage Levy: This levy is sent to your employer and requires that the employer withhold a certain portion of one\’s pay check. The IRS can levy up to 85% of your pay check. The government may also levy Social Security Payment

3. 3rd party accounts: This kind of levy would consist of pension accounts, stock accounts, 1099 sources and basically any source of income or assets with a few exceptions.

4. Assets: Because this is typically difficult for the IRS to do, it is the least common type of IRS levy. This would include automobiles, homes, watercraft or any other sort of asset.

There is also a difference between an ongoing tax levy and a onetime levy. A continual levy couldinclude salary, social security and other types of income. A onetime levy would include a bank levy and 1099 income. The IRS may only take the amount in the account or the total amount due the independent contractor the day the IRS levy was received. This does not hinder the IRS from levying again.

Ways to stop irs levy proceedings:

An IRS levy will continue until the tax liability is paid, the statute of limitations runs out, or other arrangements are made, which could include an Installment Agreement, having the account placed in Section 53 or a hardship, or getting an Offer in Compromise accepted.

Also, hiring a tax professional with experience in working with the collection department of the IRS will make sure that the tax laws are worked to the tax payer’s advantage. An experienced tax representative will also know how to deal with tax debts and the quickest method to stop irs levy activity based on the tax payer\’s particular circumstances.

Cynthia Kuhne is the founder and president of CKTax Inc., a full service tax relief company with an \”A+\” BBB record. She has both the knowledge and experience to stop IRS levy action quickly. If you have a tough tax problem, visit http://www.cktax.com or call 888-894-2005 now. Stop IRS Levy Tips video

Cynthia Kuhne has been helping people resolve their tax problems successfully for over 16 years. She is the founder and president of CKTax Inc., a full service tax relief company with an \”A+\” BBB record. If you have a tough tax problem please visit us at http://www.cktax.com or call 888-894-2005.

Author Bio: Cynthia Kuhne is the founder and president of CKTax Inc., a full service tax relief company with an \”A+\” BBB record. She has both the knowledge and experience to stop IRS levy action quickly. If you have a tough tax problem, visit http://www.cktax.com or call 888-894-2005 now. Stop IRS Levy Tips video

Category: Finances
Keywords: stop irs levy, irs levy, how to stop irs levy