Stop IRS Levy Procedures: 3 Speedy Strategies

An IRS garnishment is an aggressive procedure on the part of the IRS to grab your attention. It is an authorized seizure of your assets that will fulfill a tax debt. The Irs may possibly levy your financial institution accounts, your salaries and practically any third party account or personal property. Standard bank levies and wage garnishments are the primary form of garnishment in which the IRS issues.

Normally three prerequisites need to be satisfied before the IRS can impose a tax levy:
1.The IRS sends the tax debt due and sends the tax payer a Notice and Demand for Payment
2.The tax payer neglects or refuses to pay off the tax and
3.The tax payer is mailed a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at minimum thirty days prior to the levy. It may possibly be given to the individual in person or left at his or her house, but typically it is mailed to the last known address the Internal revenue service contains on file.

An IRS garnishment continues on until the tax liability is paid for completely, the time to collect has expired or until the tax levy has been discharged.

The 3 ways to stop IRS levy activity are:

1. Pay the tax debt in full. In the event that the balance is paid off the IRS will discharge the garnishment immediately.

2. A Streamline Installment Agreement. If the balance of the tax debt is under $25,000, a streamline Installment Agreement can be set up. This can be arranged with minimal financial disclosure. It is set up over sixty months. A streamline installment can be set up for less than the minimum required for sixty months but financial information must be given and it will need IRS manager authorization.

3. File Bankruptcy. The filing of any bankruptcy will immediately place a “stay of collection” upon an individual's accounts. There is not any requirement for any form of disclosure. It is automatic by bankruptcy laws. Nonetheless, there are numerous tax payers who owe taxes and simply cannot pay the tax bill entirely, or the balance is in excess of $25,000. Bankruptcy won't include all types of taxes and for those which can be submitted, there are very strict guidelines. I recommend getting guidance from a bankruptcy lawyer prior to considering bankruptcy as an solution.

There are additional options available when a tax payer fails to be eligible for any of the above.

In cases where my client does not meet the requirements for any of the above, then I can have the levy discharged by setting up an Installment Agreement that calls for financial disclosure and supervisor acceptance or I could place the case in a hardship or currently non-collectible which will also call for manager authorization and monetary disclosure.

With both an Installment Agreement and Currently Non-Collectible, the interest will keep accruing on the tax debt. That is the reason why I also search to see if my client would meet the requirements for an Offer in Compromise or other tax relief that will deal with the balance.

I suggest that any time financial disclosure is required, that the individual have expert representation, with expertise and knowledge of the tax code.

Cynthia Kuhne has been helping people resolve their tax problems successfully for over 16 years. She is a licensed Enrolled Agent with both the knowledge and experience to stop IRS levy action quickly. She is the founder and president of CKTax Inc., a full service tax relief company with an "A+" BBB record. If the IRS has attached a levy to your assets, is about to, or you just have a tough tax problem, visit http://www.cktax.com or call 888-894-2005 now.