Three strategies for an early release IRS Wage Levy
You may well not have paid your taxes, as you are busy or you forgot or you avoided payment due to financial factors. Whatever perhaps the reason, you can face the IRS wage levy. It is a hold on property you owned. IRS can confiscate and sell such property. IRS can also levy your property which is held by somebody else like retirement accounts, and dividends, bank accounts, rental income or even cash value of your Life Insurance. If you are married, IRS can problem wage levy against you and your spouse. This can create issues in the relationship, especially when 1 spouse is unaware of the tax issues.
A Wage Levy is usually tough to quit, nevertheless, with some speedy actions it is feasible to quit such levy and get your assets released. Here are 3 important strategies to deal with IRS wage levy –
Time factor is really essential – The most important factor in the release of the Levy is timing. The taxpayer has at his disposal only 21 days to get IRS wage levy released. If you are late, then the funds attached will be sent to IRS. So in order to take care of the living expenses, it is essential to negotiate with the IRS. IRS is a big organization and it doesn’t work extremely quickly. Occasionally it is difficult to find the correct IRS representative who can release the Levy. So it is needed to act fast. You need to much better contact a tax expert who can do this for you in a brief period. Issues can go out of hand if you attempt to ignore IRS notices.
Attempt to collect supporting documentation to stay away from hardships – In order to resolve the problem with IRS, you should make a powerful representation claiming financial hardships. If due to such wage levy you are unable to pay for your food, mortgage, rent, electricity etc., you ought to make a appropriate representation just before the revenue officer. If you are not productive at that level, you need to file an appeal. In order to present your case effectively, try to collect as much documentation as doable. You may be required to total a statement on your monetary details in the form 423A or 423F. IRS normally takes a softer view if you make an powerful representation showing your sincere intentions to settle the problem with the IRS.
Try to make a settlement with the IRS – You can make an agreement acceptable to IRS for settlement of your dues. It is possible that you may furnish a bond if acceptable to IRS. You may execute an agreement for payment of tax in a manner acceptable to IRS. You can also believe of executing an escrow agreement. These are all the approaches of acquiring the release of your property and stopping IRS for the time becoming.
IRS wage levy is a extremely unfortunate factor to occur, even so there is absolutely nothing to be afraid of it. There are techniques to shorten and end the process soon. Nonetheless, the greatest way of avoiding it is to pay taxes on time!
Written by Chintamani
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