The tax levy is a tool used by the IRS to collect unpaid taxes from a taxpayer. It does not require court action. Your property and wages can be levied, or collected, to satisfy a tax debt. While neither is desirable, a wage levy can be financially crippling to the taxpayer.
What an IRS Levy Means
If you do not pay your taxes, or make a payment plan agreeable to the IRS to do so, the IRS can levy your wages. A wage levy by the IRS legally requires your employer to send a portion of your wages to the IRS. The code regarding wage levies mandates that a certain amount be exempt from the levy; however, this amount is often small and may not be enough to cover living expenses. The wage levy stays in effect until the IRS is fully paid or until the IRS agrees to release or modify the garnishment.
Important IRS Notices
Before instituting a levy, the IRS will have assessed tax and sent the taxpayer a Notice and Demand for Payment. If the taxpayer neglects or refuses to pay the tax, the IRS will then send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. They will do this at least 30 days before the levy. This notice may be rendered in person, left at your home or usual place of business, or sent to your last known address. Can you afford to live on as little as 30% of your current net income? That may be what you’re left with if the IRS garnishes your wages.
Don’t Handle a Levy Alone
If the IRS has initiated levy proceedings against you, there’s still hope, and you don’t have to take on the IRS by yourself. The professionals at Tidy Tax have knowledge and experience that can help you. Our expert certified tax resolution specialists will handle your communications with the IRS. We will file an IRS collection appeal on your behalf to permanently release the wage levy.
Don’t let the IRS garnish your wages. Get expert tax relief help from Tidy Tax Services today. 866.749.7717