IRS Tax Levy- Introduction To Tax Levy Types
If you do not pay off your taxes (or arrive at agreements to conciliate your debt)
, the IRS may take over and sell whatever type of actual or personal property that you own or have a stake in. For example, they could confiscate and sell belongings that you hold (such as your automobile, boat, or dwelling), or they could levy property that is yours but is controlled by somebody else (such as your salaries, bank accounts, pension account, commissions, dividends, lease profit, accounts receivables, licenses, or the cash loan value of your life insurance).
IRS TAX LEVY
An IRS tax levy is a lawful seizure of your property/holdings to fulfill an IRS tax debt. Tax levies are dissimilar from liens. A tax lien is a claim applied as security for the tax debt, while a tax levy in reality claims the property to fulfill the debt. A levy is an administrative execution claimed by an entity (such as the authorities) versus an individual because the individual at issue has a financial obligation (i.e. Owes something). In tax terms, a levy is a legal action made by the Internal Revenue Service versus an individual who is late, or neglectful, in their tax payment. A levy grants the bureau to seize any property they can in order to compensate the debt.
The major types of levies are:
WAGE LEVY
The most common types are
wage garnishment; this is the process of subtracting revenue from an employee's monetary compensation including salary.
Wage garnishment can negatively affect the ability to receive a loan or open a bank account, credit, and personal reputation of the individual.
BANK LEVY
A bank levy is when your bank account is frozen and all or part of the funds in your bank account is confiscated. Bank levies can happen for many reasons; however the two more common are because of unpaid taxes and unpaid debt.
Your bank is compelled to freeze all the revenue in your account(s) up to the sum of money of the levy (that's the grand total of everything you owe IRS) for 21 days. Then, if the IRS has not issued a
Bank Levy acquittance, your bank must commit that revenue to IRS.
The dependable folks at Instant Tax Solutions have made the information easy for people to understand are here to help conquering tax levy. Instant Tax Solutions can stand for you in IRS negotiations, adjudicating your wage garnishment issues, and bringing your tax troubles to a close. We have a superior success rate in the acquittance of wage garnishments. It's really likely we'll be capable to have the garnishment discharged before your succeeding payroll check.
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Tax Attorney? Get Tax Relief from our team of experienced attorneys, lawyers, CPA's and IRS enrolled agents. Free Tax Relief Consultation.
IRS Tax Levy- Introduction To Tax Levy Types
By: Timothy Lewis
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