Avoiding An IRS Levy - Beware They Can Garnish Your Wages And Seize Your Entire Bank Account!

An IRS levy gives the IRS ownership of your assets whether it be your bank accounts, your wages, or your property. It will seize as many of these assets that are needed to provide funds to pay your tax bill. If you have received notice of an IRS levy, your IRS Problems have finally caught up with you.

The most obvious way to avoid a levy is to pay your taxes in full including any penalties or interest that has accrued. Remember, your tax bill is increasing every day with the addition of more penalties and interest. Get this paid off as soon as possible before it gets out of hand.

If paying off your tax bill is not a possibility, you do have other options to get the IRS to release a levy.

o The statute of limitations expires before the levy is served

o The IRS is convinced that release of the levy will help them collect the tax

o An installment agreement is reached

o The levy will cause you extreme financial hardship

o The assets seized exceeds the taxes owed so part of the assets are released

o Filing for bankruptcy

o Submission of an offer in compromise

There are also ways to avoid seizure of your assets. Note that these need to be done before notice of an IRS levy is received. Check to make sure you are not breaking the law when attempting any of these.

o Transfer of assets: under certain circumstances you can sell or give away assets

o Proof that the levy is uneconomical: if it will cost the IRS more to obtain, store, and sell the asset than it is worth

o Asset is essential for you to work: if you need the asset to perform your job or to get to work

o Do not reveal the existence or location of your assets: if assets are located in other states, etc.

o Store moveable assets off home or business premises: cars, boats, recreational vehicles

o Move your bank accounts: self protection move

o Rent, do not own your property: cannot seize what you do not own

o Put money in retirement accounts: discouraged from seizing these

o Use a safe deposit box: hard time finding these

Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at http://www.getIRShelp.com