What To Do If You Receive a Levy Notice From the IRS

by | Nov 4, 2022 | Back Taxes, IRS, Tax Lawyer

The IRS is not one to mess around with when it comes time for repayment.  They are the least forgiving creditor when collecting what they think is owed to them. The IRS will seize assets, including bank accounts and property such as wages or real estate. 

Contact a Tax Relief Firm

The IRS is known for tricking people into giving incriminating answers. Therefore, you should refrain from representing yourself as you may get into more trouble. Instead, find someone who knows how to help! Finding a reputable tax resolution specialist is your best option since the average tax preparer does not know how to deal with these situations. 

The IRS is not your friend. They are the most brutal collection agency on the planet. They exist solely to assess and collect taxes and will do whatever it takes when they think you have their money. They will also file a notice of federal tax lien. So, if you have a real estate transaction pending, any proceeds from the sale of that property, over and above the mortgage amount, will be intercepted by the IRS to go toward your outstanding tax debt. A tax resolution professional will ensure the protection of your assets and income from the long arm of the IRS

Next Steps

The next step you will want to take is to gather all of your financial documents and call our firm. We will help put together your case to the IRS and represent you to let them know that a levy will cause hardship for you and your family. We will need documented evidence that the levy will cause financial trouble for you, and if you can prove this, the IRS will release the levy. However, this is just putting a temporary band-aid on the situation. You will still owe the balance to the IRS. Once we get the IRS levy released,  it just means the IRS will not garnish your income and will work with you to figure out a game plan to resolve the debt. 

Make Payment Arrangements

We can negotiate a payment plan for your back taxes with the IRS. The IRS will release the levy notice if you get started on an installment plan. 

Get an Offer In Compromise 

More often than not, you can get your debt “settled” for less than what you actually owe. Often for a lot less. This is what we call an offer in compromise. An offer in compromise allows you to settle your tax debt for less than the total amount you owe. It may be a legitimate option if you can’t pay your entire tax liability via payments or if doing so creates a financial hardship. The IRS will look into your ability to pay, income, expenses, and assets to determine if you qualify for an offer in compromise. 

The IRS generally approves an offer in compromise when the amount offered showcases the most they can expect to collect within a reasonable period. However, if you move forward with an offer in compromise, hire a tax resolution specialist to help you prepare, submit and negotiate an offer, and check their qualifications before working with them. In these situations, you want the best to represent you before speaking to the IRS. The IRS is no place for the faint-hearted. If you need tax resolution services that can help permanently resolve problems with the IRS, reach out to our firm today! We will look into your situation and give you the best options for your case. Contact our tax resolution specialists today.

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DanielTCotts cotslaw

About Daniel T.A. Cotts

Daniel is a skilled Tax Attorney who moved to Corpus Christi in 2019 to expand his practice and return to Texas. With over 26 years of experience in the legal profession, Daniel brings a wealth of knowledge of Taxation, IRS Dispute representation & resolution, Estate Planning, Accounting, and Business & Contract Law to South Texas.


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