What Is A Tax Levy

What Is A Tax Levy

What Is A Tax Levy

What is a tax levy? A tax levy is a legal action by the Internal Revenue Service, usually without going to trial, to seize real property to fulfill a tax debt. “The term tax is used to describe the authority of a government has to collect taxes from individuals or companies for the government’s benefit. The process of collecting tax revenue consists of several steps including assessing the amount of tax owed, collecting the tax, and distributing the money collected to the parties involved”. The IRS processes billions of dollars in federal tax debt each year. Understanding the different types of levy actions and their common legal bases are important aspects of tax law that everyone should be knowledgeable about. The most common type of tax levy is the attachment of property. This refers to property that is seized by the Internal Revenue Service to satisfy a tax debt. The property may be seized based on collateral such as a home or car, or based on an individual’s net worth. The property may also be seized because of fraud, such as with stolen Social Security numbers or credit card balances. Other tax levies commonly enforced by the Internal Revenue Service include: income levies, sales levies, and property levies.

Another type of tax levy is the tax lien. A tax lien is when a property owner owes back taxes and does not have enough time (usually 30 days) to cure the default. If a property owner does not raise the money to pay off the tax debt within a specific time period, the Internal Revenue Service can issue a tax lien. Tax lien properties can then be seized by the tax collectors and sold to pay the tax debt. Other common tax liens include: bank liens, real estate liens, and motor vehicle liens. An “automatic stay” is when the IRS issues a temporary restraining order to a financial institution against the property or assets it has ordered seized. The court then authorizes seizures to take place until the owners can raise the funds to pay their back taxes. This is commonly referred to as an “automatic stay”. If the owners do not have the money available in order to pay their back taxes within the 21 days allotted by the court, the order will be revoked. The automatic stay expires if the owners still have not found the money to pay back their back taxes.

What Is A Tax Levy and it’s importance

One other very important factor to keep in mind is that a final notice of intent to levy must be sent by either the Internal Revenue Service or the U.S. marshal. It must also be sent to the owner’s last known address or place of employment. A tax professional who deals with these types of cases understands that they are issued by the Internal Revenue Service and that they do their best to deliver. He will also know what to do in situations where the notice of levy has been incorrectly sent. In conclusion, we recommend you contact a tax expert as soon as you become aware of delinquent taxpayers. Get help with what is a tax levy so you can work toward getting your tax debt eliminated. If you want to get your tax debt eliminated, it is important to contact a tax professional right away. They can assist you with what is a tax levy and help you obtain the relief you need.

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