In these difficult economic conditions anyone, even those who have demonstrated success in their field for years, can suddenly be laid off from their job and find themselves without any source of income. Or, maybe you are a business owner who was doing well and setting money aside for taxes, only to find that at the last minute, business suddenly dried up.
In either case, you suddenly find yourself in a tax problem situation where you don’t have the cash to pay the IRS. Frightened by the notices you were receiving, you decided to take no action. Now, as a result, you are finding yourself facing a substantial tax levy. What are some strategies you can use to get yourself out of the tight situation you are stuck in?
Ways To Remove IRS Levys
- Simply pay your tax. Given that you are in the situation you are in, you probably can’t follow through on this one. You might be tempted to take out a loan from friends or family just to get the IRS off your back. But don’t do that! If you can’t afford to pay the bill on your own, the IRS is typically willing to work with you to help reach a fair plan for repayment.
- Provide documentation demonstrating that if the IRS releases you from the levy, you will be able to pay the levy. For example, if the IRS determines it best to seize your vehicle, but it turns out your vehicle is the only method you have to get to work and produce an income, you would more than likely have a successful case.
- You show documentation demonstrating to the IRS the levy is creating economic hardship for you. Say you are that business owner whose business has suddenly and unexpectedly dried up. If you can show the IRS your gross receipts you typically expect to receive are not where you would expect them to be and they don’t appear to be changing anytime soon, then you may have a case that will release the levy.
- You make an acceptable arrangement for paying the tax. If the IRS determines, or if you have showed the IRS, you are not able to pay the taxes you owe but you are willing to pay what you can, they typically are happy to work out an agreement with you. You may work out an Offer in Compromise, which reduces the tax you owe, possibly all the way down to zero.
- Submit a request to pay via installments. You can submit IRS form 9465, Request for an Installment Agreement, which allows you to make monthly payments. As soon as the installment is in place, the IRS will lift the levy.
Are you Facing a Huge Levy? Your Situation Isn’t Hopeless!
If you are facing a huge levy or have already experienced one, your situation isn’t hopeless. The best thing you can do is to approach the IRS and work with them. And, if this is too scary or time-consuming to do on your own, use the help of an experienced professional.