While most tax seasons are stressful and overwhelming, do you find yourself wishing there was a quantifiable way to decrease your tax liability? How about reducing your tax liability by as much as 80%? If so, then implementing a tax levy garnishment may be able to cover the range of expenses that made it difficult or unnecessary for you to pay your taxes.
Tax Liability Basics
The steps outlined in this article will help you reduce your tax liability. The IRS recommends that you take these steps before filing your tax return:
– Review your tax liability. Complete Schedule D by including all of your deductions and credits. If you have any questions, speak with a accountant or visit the IRS website at www.irs.gov. Remember to file your taxes by April 15th so that you can receive your refund in time for the holidays.
– Consult with a tax preparer. A tax preparer can review your filing status, deductions, and credits, and provide advice on reducing your tax liability. However, be aware that some preparers may recommend paying more in taxes than necessary to get a larger refund.
– Seek a levy garnishment. A levy is a court order that allows the IRS to seize money from someone’s bank account to pay back taxes. If you are behind on taxes and your income is above the limit set by the IRS for seizure, the IRS may petition a court for an order to levie your wages or bank account. Even if you don’t have to pay back taxes right away, a levy will still prevent you from spending money until the issue is resolved.
How Does Tax Levy Garnishment Work?
If you have an outstanding tax debt and are behind on payments, a tax levy garnishment may be your best option. A tax levy is a legal process that can be used to seize bank accounts, wages, and other assets belonging to someone who owes taxes. The IRS can take these assets without having to go through a court system. In order to qualify for a tax levy, you must meet certain requirements, including owing taxes that are more than 10 days past due.
The process of getting a tax levy is simple. The IRS will serve you with a notice demanding payment of your debt. If you do not pay the debt within 21 days, the IRS will file a lawsuit to get the money from your assets. Once the lawsuit is filed, the court will appoint a receiver to take control of all your assets.
If you are able to pay off your debt, the receiver will liquidate your assets and give the money back to you. If you do not have enough money to pay off your debt, the receiver will sell your assets and give the money back to you after taking out expenses associated with the sale (such as commissions).
Potential Results of a Tax Levy Garnirement
If you are behind on your taxes and owe the IRS money, a tax levy garnishment may be your best option. This is a legal process in which the IRS seizes assets from you to cover your unpaid taxes. It’s a last resort, but it can result in significant reductions in your tax liability. Here are four possible results of a tax levy garnishment:
1. You may be able to reduce or eliminate your entire tax debt.
2. You may be able to significantly reduce the amount of money you will have to repay.
3. You may be able to stay out of jail as a result of this situation.
4. The Levy Process May Be Completed Quickly If All Appropriate Documents Are Available.
There are certain requirements that must be met before the IRS will proceed with a tax levy garnishment. The IRS will first take steps to reach an agreement with you about payment plans or reductions in your debt. If these negotiations fail, the levy will proceed.
The steps involved in the levy process are:
· Notice of Claim – This is sent to you by mail or electronically as part of the
What is an IRS levy?
When is an IRS levy taken?
When can I contest the levy?
Are there any benefits to contesting a levy?
What are some things I can do to reduce my tax liability with a levy?
1. What is an IRS Levy?
An IRS levy is a government seizure of your assets, usually through the IRS. This occurs when an IRS Notice of Levy has been issued and you have failed to meet your tax responsibility. The notice will direct you to bring all of your taxable income and deductions into compliance or face immediate seizure of your assets.
2. When is an IRS Levy Taken?
An IRS levy may be taken at any time in relation to taxes owed, including if you have already paid all or part of the tax debt in question, if you have filed a tax return but have not paid the taxes due, or even if you have appealed a tax assessment. The decision to levy depends on many factors, including how much debtors owe and how long it would take them to pay that amount in full.
3. When Can I Contest the Levy?
In general, taxpayers have 45 days after receiving an IRS Notice of Levy to contest it before the seizure takes
FAQ
In order to substantiate your claimed tax deductions and credits, the IRS recommends that you gather all of the necessary documentation to substantiate your claimed tax deductions and credits. You may also need to provide bank statements and other financial documentation to prove that you are in compliance with your tax obligations. Additionally, it is important to keep records of all payments made towards owed taxes, as this information can be used to support a claim for a refund or reduction in levy.
