The internal revenue service has a very effective collection technique known as the tax levy. It is a forced collection technique in which the taxation department will take away the assets and dells it to fulfill the tax debts a taxpayer has. The way to deal with this situation is to enter into a contract with the internal revenue service that will assure you that they will not take collection actions against you.
There are many ways to deal with the tax levy. The primary way is to pay the full tax amount in one single settlement. You can get levy release by going for this technique. If you pay the full amount, the collection procedures stop at once.
You can also go for the technique of making the statute of limitations expire. The tax department has just ten years to collect the tax debts from the taxpayer and if this period is up, the department can no longer go forward with collection procedures. You must be very careful while signing the papers as the department will have the authority to extend the statute of limitation.
You can also set up the installment agreement to avail levy release. This is an agreement between the taxpayer and the taxation department that allows the taxpayer to settle the tax amount in small installments. The payments must be done in the exact dates so that you can avoid the tax levy being re-enforced on you.
Another great technique is the partial payment agreement. This is just like the installment agreement but the total tax amount payable will be less than the actual due amount.
Offer in compromise is an offer made by the taxation department. The taxpayer will be allowed to settle his debt in a lesser amount than the one he owes. You must give a request to the taxation department and after the negotiation process you will be able to get a levy release.
You can prove that you have assets with no equity in front of the taxation department authorities. This will make the revenue service let you off from the levy since they cannot get anything from your assets even if they are going forward with the recovery process.
You can also prove financial crisis in front of the taxation department so that you get an exception from the collection processes. There is a chance that the internal revenue service will lift the levy from you if you are proving your financial crisis effectively in front of the authorities.
You can also appeal the levy. Your appeals will lead to an investigation whether the collectors had followed the normal procedure or not. If the procedures are not correct, you may get a levy release.
Filing bankruptcy is another technique. If you are proving in front of the court of law that you are bankrupt, the court will issue order that will release you from paying tax levy.
Getting the help of a tax lawyer who can provide you tax help will be the best option to avail a levy release.
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