Are you conscious of the various kinds of IRS tax levies? A levy is a device that the IRS makes use of to gather unpaid taxes. This isn’t one thing that it’s a must to fear about except you owe cash and are ignoring notices from the IRS.
You will need to change into acquainted with each sort of IRS tax levy. Though it’s possible you’ll by no means run into this case, this info will be extraordinarily beneficial. If nothing else, it can scare you from not paying your taxes on time or understanding a cost technique with the IRS.
That is the most typical type of a tax levy. With this, the IRS makes your employer deduct a specific sum of money from every pay verify. This cash will go in the direction of your unpaid taxes. Your employer has no selection however to hearken to the IRS except they need to additionally get into sizzling water.
Financial institution Account Levy
The IRS can immediately entry your checking account, freeze the funds, and take cash to fulfill overdue tax. They’ll proceed to take cash out of your account till they’ve collected sufficient to cowl your whole tax debt.
Whereas this is occurring, you don’t have any selection however to sit down again and watch. Your checking account can be frozen. Briefly, you might be unable to withdrawal your cash earlier than the IRS.
Whereas that is the least widespread sort of IRS tax levy, it does occur occasionally. Most often, it’s a final resort. With property seizure, the IRS can take private property together with automobiles, boat, and residential. Once more, the worth of your property will go in the direction of paying your tax debt.
Social Safety Garnishment or Levy
Once more, this is among the least widespread sorts of tax levies. The IRS can garnish as much as 15 % of your Social Safety earnings through the Automated Federal Fee Levy Program (FPLP). If they don’t undergo the Automated Federal Fee Levy Program (FPLP) they will garnish with out restrict.
Earlier than the IRS will get began with one of many levies listed above, they’ll contact you many occasions. If you happen to obtain a discover within the mail, don’t take this frivolously. As a substitute, contact the IRS as quickly as potential to pay your taxes in full or setup a cost plan. Briefly, you need to do no matter you may to keep away from a levy.
These are the sorts of IRS tax levies that the IRS makes use of to gather unpaid taxes. If potential, keep away from a levy in any respect prices. If you happen to do run into this case, rent knowledgeable to point out you the best way.