Common Questions Regarding Tax Levy
Are you currently dealing with an IRS tax levy in Houston, TX? If you are, then you be worried about what the levy will do to your assets, finances, and your credit. A tax levy only happens when you have failed to pay your tax debt and have some sort of agreement with the IRS. This is one of the most powerful collection mechanisms that is used by the IRS and they have the right to subject you to it. While this can be frightening, there are various ways that taxpayers can try to seek some relief from this. The key to resolving a tax levy is by getting as much information as you possibly can and hiring a tax consultant.
To further understand, here are a few common questions that many taxpayers ask regarding IRS tax levy in Houston, TX:
- When does the IRS impose a tax levy?
A tax levy is usually imposed when you are seriously delayed on paying tax debt and you have not attempted to clear the debt with the agency. However, before imposing a levy, the IRS will send several written notices of unpaid tax to your address. If you do not respond to the notices, then the agency will issue their final notice explaining that you have 30 days to impose a levy. If there is still no response at the end of the 30 day period, then the IRS will impose the levy.
- What assets can the IRS take through a levy?
The IRS will have the right to take several things, however certain items will be exempted. The IRS can take wages, commissions, payments from clients, money from bank accounts, employee travel advances, property, and even the rights to the property. They can even take 15% of your Social Security payments.
- What if you disagree or there is an error with the Notice of Intent to Levy?
If you do not agree with the notice, then the next step is to have the right to appeal. It is rare when the IRS makes any mistakes on misplacing payments or mixing up paperwork, however if the agency does not handle the steps correctly, you have to contact them through the phone number on the notice and do the required paperwork to file an appeal.
- How to avoid a tax levy?
The best possible way to avoid a tax levy is to stay compliant with the IRS by filing on time and paying your tax. You also need to respond to any of their notices that you receive. If you encounter a time where you cannot afford to pay your taxes, then you need to let the IRS know in order to make the proper arrangements.
- What’s the different between a tax lien and a tax levy?
A tax lien is used to place a claim on your assets so that the IRS can claim any of your proceeds from a sale. A tax levy on the other hand gives the IRS the legal right to own your assets.
- Are there tax professionals who can help with a tax levy?
There are various tax professionals who specialize in finding solutions for taxpayers who are in trouble. The tax laws are very complex and a tax professional will be able to help you navigate through the situation for successful results.
If you are looking for a professional consultant for your tax levy in Houston, TX, then you have come to the right place. Bobino Tax Consulting Services can help you out to come up with the solutions to your tax problems. Whether you need tax consulting to avoid any potential problems or need help with tax collection and solutions, simply call them up at 832-483-2791.