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Release Tax Levy
How to Release a Tax Levy?
If the IRS or state tax authorities have issued a levy to seize your assets, than its understandable that you're looking at ways to get this levy released. This "super-power" collection tool is used millions of times a year against taxpayers across the country. We've talked to many of people in your shoes. You're not alone and most importantly, the good news is that you're not without options.
Presumably, you've been given warning by the tax authorities about their intention to levy your assets. Whether the levy is attached to your bank account, wages, or even accounts receivable, know that the authorities can and will continue to enforce collections if your tax debt isn't resolved with an agreed upon plan. That having been said, the tax authorities are just trying to get your attention with this levy. Now that they have it let's look at what options may be available to you to release a tax levy.
Full Payment of Your Tax Debt:
Paying your tax bill in full is obviously the easiest way to request a release of levy, but most likely not the scenario you're in right now or you wouldn't have been levied in the first place.
However, it's worth noting that if you have a way to get the full payment in the near future from your family or friends, from a sale of property, or by any other means it's worth turning over every stone to resolve your tax debt and possibly negotiate an immediate release of the levy.
Verify the Levy is a Hardship:
This is a sticky one since everyone understandably perceives a levy against their assets as a hardship. The IRS and state authorities have defined rules and procedures that meet the official terms of a hardship. If you are able to verify that you the hardship criteria is met, you may be eligible for a levy release.
File an Appeal to Remove the Tax Levy:
Again another tricky one since there are many case-specific considerations to keep in mind to determine appeal eligibility. This option should be used with caution as these types of appeals typically are accepted on the grounds that tax authorities didn't follow proper procedure, or that there is an inability to resolve the liability with the personnel that you're working with.
Agree to Resolve the Tax Debt:
This option is the most common answer to releasing a tax levy. The authorities truly don't want to levy businesses and people forever. The intention for everyone involved is to get the debt resolved through any number of resolution options such as a formal payment agreement or Offer in Compromise (tax settlement). Once the resolution is negotiated and in place you'll be in a better position to have the tax levy removed.
Nothing is easy about a tax levy. If you need some assistance on how to quickly address your tax levy, our tax advisors are ready to jump in with you. Time is of the essence and having a specialized tax expert like 20/20 Tax Resolution in your corner guarantees that you'll get every right you deserve and obtain a resolution that you can live with.