Best tax debt relief
Tax relief:
Understanding and coping
with the IRS
If you’re in receipt of an IRS Notice and Demand for Payment you’re definitely interested in your options for Best tax debt relief. You are also familiar with the term levy and have 30 days to do something about it. Not to be confused with the noun levee - a protection against flooding - levy is both a verb and a noun, which when used by the IRS, can put you in rather deep financial straits.
Here is the IRS definition of levy:
“A levy is a legal seizure of your property to satisfy a tax relief. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.”
If you don’t pay your taxes, or if you don’t come to some sort of settlement or agreement with the IRS, the government can actually confiscate and sell off your real or personal property that you either own outright or have a personal interest in, such as:
- your car, boat or home
- your wages, retirement, bank and investment accounts, rent incomes and even the cash value of your life insurance policy
The three criteria for an IRS levy
The IRS will seize your assets only after your case meets the following requirements:
- You have taxes owed and have received a Notice and Demand for Payment.
- You failed to pay the tax after receiving a final notice along with the notice of your right to a hearing.
Your hearing and appeal determined that the levy is proper and warranted
The notification process all takes place over a period of about 60 days, and if you opt for a hearing, you can also appeal any adverse ruling through a complicated and lengthy bureaucratic process that can be baffling and confusing to the average wage earner. You should definitely get some help here.
Your protection against the hardship of levying
The IRS has the power to release a levy if “they determine” (i.e., you can prove) “immediate economic hardship”. The release won’t exempt you from having to pay the tax, but you can work out a payment plan or other means to discharge the debt. Again, don’t run and hide. Get some professional help and be up front and proactive with the IRS manager handling your case.
You have 30 days to act
When you receive your first notice you can request what the IRS calls a “Collection Due Process” hearing by filling out their - you guessed it - a Collection Due Process Hearing request. Alternatively, you can simply ask the IRS manager to review your case. Do that within 30 days after receiving the notice and you’ll get an opportunity to clear up the problem.
You have a lot to lose
The IRS and its thousands of pages of regulations and procedures allows it to throw the book at any delinquent taxpayer. Our complex tax system shows no signs of getting simpler, and the average American definitely needs help when the IRS decides to bring their power to bear against you. Contact Optima Tax Relief if you’re facing a lien or levy. These folks will help you deal with the IRS and help lead you out of trouble.
Captain Money enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation.
Captain Money has a bachelor’s degree in economics and a LL.M. degree in Taxation from University of San Diego School of Law.
Captain Money is admitted to practice law before the United States Tax Court and the Supreme Court of the State of California.
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