The Collection Due Process (CDP) hearing is one of the most important rights given to taxpayers. It’s your final opportunity to stop an IRS levy of your assets or the filing of a federal tax lien against your property.
If you’re having tax problems
Tag: tax levy
Once you receive a Notice of Intent to Levy from the IRS, a bank levy or other enforced collection action is imminent. You need to take action immediately if you want to avoid having the money in your bank account seized and applied to your tax debt.
How to Stop an IRS Levy When the IRS is about to levy your assets, you should look for any possible opportunities to stop or delay the levy. Once the levy happens, it’s very difficult to get that property back, but there are several ways to stop a levy before it takes place.
IRS Levy Procedures The IRS must follow certain procedures before seizing your property. Typically, that process goes something like this: You receive a notice stating that tax has been assessed and asking you to pay it. You don’t pay or resolve the matter by the deadline. A Final Notice of Intent to Levy is… Read more »
What is an Administrative Wrongful Levy Claim? You can file an administrative wrongful levy claim when the IRS seizes property to collect tax revenue owed by another person and you have a superior right to this property. This typically means you either own the property or have a security interest that was filed before… Read more »
To get a levy released, you’ll need to contact the IRS and give them an acceptable reason for releasing the levy. Generally, you can request a levy release if you’ve worked out a payment arrangement, are experiencing an economic hardship due to the levy, or the IRS failed to follow the correct procedures.
When Will the IRS Levy Retirement Accounts? The IRS can levy the assets in a qualified retirement account, such as a 401(k) or an IRA. However, the IRS will only levy retirement funds as a last resort. They would rather levy other assets, such as a bank account. Before the IRS will levy a retirement… Read more »
Preventing a Tax Seizure If you refuse, ignore or fail to pay your federal income taxes, the Internal Revenue Service has the legal right to seize your property. Property levies are the most severe action taken by the IRS. In case you are behind on the tax debt, you should understand how tax seizures work… Read more »
What is a Wage Garnishment? A wage garnishment is one of the most powerful collection tactics used by the IRS because it takes your money before you ever receive it. Your wages are transferred directly from your employer to the IRS in order to satisfy your delinquent tax debt. You should receive several notices from… Read more »
What is a Collection Due Process Hearing? A collection due process (CDP) hearing gives you one last chance to avoid a federal tax lien or tax levy. You will know you have a right to request a CDP hearing because you will receive a CDP notice. This notice is sent when any of the following… Read more »