Tax Levy Help: Relief from an IRS or State Tax Levy
A tax levy can be financially devastating. The IRS and many states will either garnish your wages or levy your bank account. They can also seize other types of property if necessary to satisfy a tax balance, including real estate and vehicles. Here is an example of just how little the IRS can leave you with a wage garnishment.
In many cases, the IRS or State requires taxpayers to file unfiled tax returns before a tax levy is lifted or reduced. Whether facing business or individual tax issues, IRS or State issues, we’ll get you the help you need. Whether a tax levy or garnishment is in effect currently, or you received a notice of intent to levy, it is important to act quickly.
How Does the Tax Levy Service Work?
The process generally starts with a free consultation. The consultation is a time for the tax firm to learn more about your tax and financial situation and what they believe they can do for you. It is a great idea to have any tax letters handy. Moreover, knowing personal/a monthly income and expenses, including any assets or liabilities is a big plus.
At the end of most consultations, the taxpayer will have an idea of the proposed plan of action to lift or stop the levy, along with any associated fees. At this point, there is no obligation to continue. In some cases, the tax firm may provide you a free investigation to give you accurate numbers concerning your resolution with the IRS or State.
If you decide to continue, you normally will be provided Form 8821 and/or Form 2848 (Power of Attorney) if it is an IRS issue. If the tax matter is concerning a state, you will be provided a different set of form(s), although some states do leverage IRS forms for state tax matters.
Before the licensed tax professional begins discussions with the IRS or State, form 2848 or the respective state tax Power of Attorney will need to be on file. A power of attorney stops the IRS or State from contacting you directly. Instead, the IRS or state contact your tax professional.
Depending on the tax situation and the resolution option pursued, the process can take anywhere from 30-60 days on average, with settlements taking longer.
Once your tax resolution is complete, you are given guidance to prevent tax problems from reoccurring.
Does It Make Sense to Use a Tax Professional?
Remember, it is a good idea to hire a tax firm or a licensed tax professional. Experience counts. It also shows the IRS or State that you are actively trying to come up with a solution. Would you go into surgery without a doctor? In most cases, an experienced tax firm/tax professional can improve your chance of getting a proposal or appeal accepted in most cases. Taxation authorities often prefer working with licensed tax professionals because the tax professional knows how the process works.
How Can I Find a Professional the Help with a Levy?
At TaxCure, we have teamed up with tax professionals from around the country who all have a variety of specialties. We have made it easy for taxpayers to quickly find professionals that can help with their unique problem. You can start your search below by selecting the agency and location if that is important to you. Realize, most professionals work remotely and you don't need to find someone local if that option is not available. After selecting the agency or agencies involved with your problem, you can then select the problem you are having. The results will yield the professionals that have experience helping with that exact problem. Our algorithm also sorts the pros from highest rated based upon user feedback in helping with that particular problem & agency.