There are several things that people dread of - an unpaid notice, a court summon, a traffic ticket, etc. But the most of the people gets scared at the sight of a notice of levy from the IRS department, as there is a possibility of the wages, bank account or other property forcibly taken if the tax is not paid. The liability of tax is in the hands of the tax department and they intend to do whatever they want to collect the taxes from a person. This may be due to the carelessness one would have shown on the several reminder letters sent by the department to pay the remaining or all of the taxes that are due to them. The notice received is the first process and information from the department; and the second process would be a hearing by a neutral officer, before the bank account is emptied or the property is seized. One must know when an IRS debt turns to tax levy.
When does the IRS send a Notice of Levy?
Usually the following steps are followed to send a notice of levy.
• A reminder is usually sent several times, if the tax has not been paid. This is sent only after it has been assessed properly.
• If the reminders are neglected, a notice of levy along with a form for hearing is sent.
• If still not responded, then the IRS may contact your bank or other party who may be holding your money to seize it. The bank may not object, otherwise they may be liable for your money.
How to Respond?
It’s high time, one responds to the notice as soon as one receives it in order to escape from further troubles. Here are a few tips on how to respond for the tax notices.
• Firstly, contact a tax consultant who may help you out in solving the issue. Tax consultants would be the best preference as they may be the only person to handle the issue properly.
• The issue cannot be solved over the phone, as the call center assistants may have a little knowledge about tax and other details and also, they may finally ask for a few documents which may not be delivered over the phone.
• Along with the notice, you may find an IRS Form 12153 for hearing, which is a form for requisition of Collection Due Process Hearing and an explanation about the form. This is compulsory for the IRS to send the form and the explanation.
• If the form is not found, then you may download it from their website.
• Fill this form and submit it immediately. If this form is submitted within thirty days, then IRS cannot take away the properties or other assets.
• Gather all the documents and keep it ready for the issue to be solved. For example, if the IRS department claims that you have not paid, whereas you have, then keep the evidences like bank records ready. In case of hearing, you may be asked for document of proof.
In many cases the notice of levy may be released if the case is produced by a tax attorney or tax consultant effectively with due evidences in place.
Premier Tax Resolutions offers solutions for tax debt, notice of levy, seizure, garnishments, etc. with the help of specialized tax experts. To know more about tax levy basics, you may visit About.com.