What is what to do when you get a notice of levy?

Here's information about what to do when you receive a notice of levy:

A Notice of Levy is a legal document from the IRS (or a state tax agency) informing you that they intend to seize your property to satisfy a tax debt. This is a serious matter that requires immediate attention.

Here's a breakdown of steps you should take:

1. Read the Notice Carefully: Understand what the notice is for. Identify the type of levy (e.g., wage garnishment, bank levy), the amount owed, and the tax period involved. The notice will also tell you which property the IRS intends to seize.

2. Contact the IRS Immediately: Do not ignore the notice. Contact the IRS using the phone number provided on the notice. Explain your situation and express your willingness to resolve the debt. Be prepared to provide financial information. Ask about your options for resolving the tax%20debt "https://www.wikiwhat.page/kavramlar/tax%20debt".

3. Determine if the Levy is Valid: Ensure the IRS has followed proper procedures. They must have previously sent you a Notice of Intent to Levy. If you never received this initial notice, the levy might be invalid. The agency must also be levied the correct amount of tax%20liability "https://www.wikiwhat.page/kavramlar/tax%20liability".

4. Explore Payment Options: Discuss payment options with the IRS. These may include:

   • Installment Agreement: Negotiate a payment plan to pay off the debt over time.
   • Offer in Compromise (OIC): Settle the debt for a lower amount than you owe, based on your ability to pay.
   • Currently Not Collectible (CNC) Status: If you have limited income and assets, the IRS may temporarily suspend collection efforts.
   • Tax%20Levy%20Release "https://www.wikiwhat.page/kavramlar/Tax%20Levy%20Release"

5. Gather Financial Information: Collect documentation such as bank statements, pay stubs, and information about your assets and expenses. This will be crucial when discussing payment options or applying for hardship relief.

6. Seek Professional Help: Consider consulting with a tax%20professional "https://www.wikiwhat.page/kavramlar/tax%20professional" (e.g., CPA, enrolled agent, or tax attorney). They can help you understand your rights, navigate the process, and negotiate with the IRS on your behalf. They can also assist with filing an appeal or requesting a hearing if you believe the levy is unwarranted.

7. Take Action Quickly: Time is of the essence. The longer you wait, the more likely the IRS is to proceed with the levy. Prompt action can significantly improve your chances of resolving the situation favorably. Addressing a tax%20problem "https://www.wikiwhat.page/kavramlar/tax%20problem" now is crucial to prevent further complications.