What is a Tax Levy? LifeBack Tax

What is a Tax Levy?

When the government struggles to collect back taxes from an unresponsive taxpayer, they may ultimately resort to a tax levy, legally seizing the taxpayer's property and assets to pay their tax debts. Tax levies are among the harshest actions taken by federal, state, or local tax authorities to collect past due taxes from delinquent taxpayers. A tax levy may also be referred to as an administrative levy or an asset seizure.

A tax levy should not be confused with a tax lien, which merely asserts the government's claim to the taxpayer's assets. In fact, the Internal Revenue Service treats administrative levies as a fully separate process from federal tax liens, and is not required to file a public Notice of Federal Tax Lien before issuing a tax levy. Unlike foreclosure of a tax lien, an administrative levy allows the IRS to seize property without taking the taxpayer to court. Typically, the IRS typically only resorts to a tax levy when all other options have failed.

Before enacting a tax levy for back taxes, the IRS sends the taxpayer a Final Notice of Intent to Levy, warning that their property and assets are at risk of seizure. This notice gives the taxpayer 30 days to challenge the IRS's levy. If the taxpayer still does not respond within the given time, the IRS may begin levying the taxpayer's property and assets to pay down the taxpayer's liability. State tax authorities often follow similar procedures when enacting a tax levy for state back taxes, though the allotted time to appeal may vary from state to state. Notoriously, some states have been known to seize a taxpayer's assets without providing a prior notice of levy at all.

An administrative levy immediately puts your business or livelihood at risk. The government may seize almost any of the taxpayer's assets that have equitable value, including real property, jewelry, cars, boats, aircraft, business assets, bank accounts, and wages or salaried income. Even jointly owned assets may be levied, as long as the other co-owners are compensated.The IRS is also permitted to levy certain forms of income that are usually protected from garnishment, such as Social Security benefits, spousal support (unless part of court-ordered child support), veteran benefits, tax refunds, and retirement accounts. Certain assets may be exempt from tax levy, such as basic clothing, school books, personal items and necessities up to a fixed total value, and a minimal amount of income to cover basic living expenses.

A tax levy is released when the taxpayer pays their past due balance, agrees to a payment solution, negotiates to have the levy released, or proves that their assets were wrongfully levied. A tax levy may also be released if the levy puts the taxpayer in financial hardship. When a levy is released, the government halts all asset seizures, including bank levies and wage garnishments.

If you have received a levy notice for unpaid taxes, we recommend contacting the IRS or your state tax agency immediately. We at LifeBack Tax are committed to defending the livelihood of taxpayers, and can represent your case to the government. We will protect your assets from seizure and arrange to have your levy released as soon as possible.

 

Fast and Easy 4 Step Tax Relief

Step 1

Tax Investigation determin your tax liability

Step 2

Retrieve all documentation from the IRS

Step 3

Calaculate tax liability and current ability to pay

Final Step - Execute offer in compromise get your Life Back

IRS Tax Resolution - Get your Life Back

The fast path to tax resolution can be yours and you can get back to your life. We have a 4 step process that's easy for you. Don't worry about the State or IRS we take care of everything for you. We collect your data, contact the tax agency for you. We handle all negotiations to the tax debt entity so you don't have too. Within 24 hours we stop the wage garnishment or levies so you can focus back on your life.

Get your life back today, move on, go out have some fun let us handle all your worries with your tax debt. Our trained professionals will get that tax settlement for you and you'll be happier for it. At LifeBack Tax our job is your complete satisfaction.

Start Now Settle Now

Why put off what you can do today. Some customers have been putting their tax debt off for years. There is no reason, you have rights. We understand that a bank levy, or wage garnishment can have a severe impact on your life. It can be quite devastating trying to pay all your bills and feed your family while you are being levied or garnished. LifeBack Tax stops all that within 24 hours. Get the IRS off your back today, you have rights and we will represent them and make this as fast and painless as possible for you.

What are you waiting for this is your one opportunity to act now and take your life back. Let the experts at LifeBack work for you and settle this for you once and for all.

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Certified by The American Society of Tax Problem Solvers
Certified by The American Society of Tax Problem Solvers
Certified by The American Society of Tax Problem Solvers

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Member of California Society of Certified Public Accountants
Member of California Society of Certified Public Accountants

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Member of National Association of Enrolled Agents
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Member of California Society of Enrolled Agents
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