When a Tax Levy Takes Place

Many people believe that the IRS will use tax levies whenever they can. This is true to a certain extent, but requirements must be met before they will move forward with the levy process. If you owe money to the IRS it is important to know when they will begin to consider a tax levy. Being armed with this information should help you avoid this scenario.

These three requirements are usually met before a tax levy takes place:

1. A Notice and Demand for Payment is sent by the IRS. This is done after your situation has been assessed, and it is determined that you are not paying your debt.

2. You have decided not to pay the taxes that you owe.

3. You are sent a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This is done at least 30 days before the levy. It is important to realize that you can receive this notice via certified mail, or by hand at your home or place of employment.

As you can see, the IRS will not spring a tax levy on you without notice. They will first tell you that you have to pay, and then wait for your answer. After that, you are given a chance to come to an agreement on how you will pay your debt. If the IRS decides that you are not going to pay, this is when they will send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. At this point, you are very close to having your property levied. You can still escape this, but you have to act quickly because you only have 30 days.

The more you know about how the tax levy process works the better chance you have of avoiding it if you owe money to the IRS.

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