How can an IRS levy be prevented?
- December 18, 2012
- David Greene
- Comments Off on How can an IRS levy be prevented?
The IRS can send one’s employer a Notice of Levy to withhold a portion of his paycheck. The employer will then withhold up to 60% of the paycheck depending on where the employee falls on a chart. Also, the IRS can freeze one’s bank account and seize funds in the account to pay delinquent taxes. This usually results in overdrawn checks, which leads to more bank fees. However, before the levy occurs several warning letters will be sent and the last two will be sent certified mail. One cannot ignore these letters! A levy can be prevented in several ways. If one does not feel he owes the tax, or if he cannot pay all of the tax immediately, a request for a Collection Due Process Hearing can be filed that will stop the levy until after the hearing and an opportunity to suggest alternate methods to pay. However, this Request for Hearing must be filed within 30 days of receiving the Final Notice Before Levy. Also, a temporary voluntary Installment Agreement can be established if necessary while an Offer in Compromise is explored.