Levy Process In Finance

Posted on November 15, 2011 by Admin
Levy Process In Finance

Levy Process In Finance

The Internal Revenue Service describes a levy as the legal seizure of a taxpayer’s property to fulfill a tax debt. A levy varies from a lien. The latter uses the property as collateral for the debt; a levy actually takes the property. Items subject to an IRS levy include the taxpayer’s car, boat, home, dividends, retirement accounts, bank accounts, rental income, wages, accounts receivables, and income tax refund. Whether the levy has been imposed or not, it is possible to stop it.

Installment Agreement for an IRS Levy

  • Call the IRS and request an installment agreement, which allows one to pay off the debt over time. The IRS has many installment agreements, designed for different situations.
  • The Guaranteed Installment Agreement is the simplest–it’s designed for taxpayers who owe $10,000 or less in taxes.
  • The Streamlined Installment Agreement is designed for those with a tax debt of $25,000 or less.
  • If the debt is more than $100,000, the installment agreement requires a longer payment term. In this case, the IRS may require that the taxpayer sell his assets to satisfy some of the debt before offering him this type of agreement.

Appeal the IRS Levy

Before imposing the levy, the Internal Revenue Service must satisfy some legal criteria, such as sending the debtor a bill demanding payment, and sending him a levy notice if he refuses to pay the balance. If he has issues with the levy, he should file an appeal with the appeals office listed on his levy notice within 30 days of the notice date.