A tax levy is a very effective technique which is used by the internal revenue service for collecting taxes from the people. It is one of the very effective techniques in which the taxation department will take away the assets to fulfill the dues of the taxpayer. The right method to deal with this condition is to enter into an agreement with the taxation department which will guarantee you that they will not do any collection actions against you.
There are several methods to deal with the tax levy. The best method is that to pay the entire tax amount in one single settlement. If you go for this method you can get levy release. If you pay the complete tax amount at one single settlement, at once the collections procedures stop.
There is also another method in which you can make the statute of limitations expire. The tax department has only 10 years to collect the tax debts from the taxpayer and if this time is up, the tax department cannot go with the tax collections procedures. When you are signing the papers you have to be very careful, since the tax department will have the right to extend the statute of limitation.
In order to avail levy release, you can get into an installment agreement. This is an agreement between the taxation department and the tax payer. The installment agreement is a contract which helps the tax payer to pay his or her tax dues in easy monthly installment basis. In order to avoid tax levy, you have to pay the tax amount on exact dates.
Another great method is the partial payment agreement. This is similar to the installment agreement but the total tax amount payable will be less than the actual amount due. Filing bankruptcy is another technique. If you are prove in front of the court of law that you are bankrupt, the court will issue order which will release you from paying tax levy.
Offer in compromise is another offer which is introduced by the taxation department. This offer will help the tax payer to pay his or her dues in lesser amount than the one he or she owes. In order to avail this offer you have to make a request to the tax department and after the negotiation procedure, you will be able to get a levy release.
In front of the taxation department authorities, you could prove that you have assets with no equity. This will make the revenue service let you off from the levy because they cannot get anything from your assets even though they are going forward with the recovery process. You can also prove about your financial difficulties in front of the taxation department therefore you get an exception from the collection procedures.
There are lots of chances that the taxation department can increase levy from you, if you are proving your financial crisis effectively in front of the authorities. You could also appeal the levy. Your appeals will lead to an investigation whether the collectors had followed the normal procedure. If the processes are not correct, you can get a levy release. Consulting a tax lawyer help you and provide you the tax help.