Even though you have ignored several Internal Revenue Service tax levy notices, you may still have a few more days to respond to them and stop an IRS levy. The IRS is required to send you a final notice before attaching your assets. This notice must fully explain your unresolved tax debt and advise you of your rights to request a hearing. You must respond immediately to stop an IRS levy and avoid further actions.
With no communication from you, the Internal Revenue Service will be forced to begin the tax levy process. You will be notified of all assets that will be affected by this. Any accounts or properties listed under your Social Security number are at risk. The company where you work will be notified of the impending levy against your wages. Once the levies are approved by the court, the Internal Revenue Service can:
- Garnish your wages
- Freeze your bank accounts
- Place liens against your property
- Seize your personal property (i.e. cars, homes, etc.)
You can delay these serious IRS actions by responding to the final notice with intent to resolve your tax debt. Submit a letter to the IRS explaining you cannot pay your tax debt in full at the present time. You do not need to state your reasons for your inability to pay. Request a time extension of at least 45 days to allow you time to make financial arrangements and find IRS tax levy help.
The Internal Revenue Service will suspend collection activity only for 45 days. If you have no resolution to your tax debt in that time period, the tax levy process will begin. It may be possible to request another 45-day extension, but chances are slim it will be approved. Try to submit a small payment toward your tax debt with your first letter to show good will, or request an IRS tax relief payment plan.
If you miss your 45-day deadline to respond/pay, you may not hear from the Internal Revenue Service immediately. The IRS system is cumbersome and slow but they will eventually pursue your case again. Unfortunately, your tax debt will now be larger due to added penalties and fines. Consult with a tax relief expert for tax levy help and advice.