What Is Tax Levies
Under the United States Federal law, tax levies means an administrative action that is taken by the authorities of internal revenue services. The IRS basically recovers the tax liability form the debtors by seizing their property, without going to the court. Under the section 6331, IRS uses, this most feared version of recovering debt, only when the debt is serious and you are ignorant about it. According to the power granted to the internal revenue services, they can even levy your wage, bank accounts, and insurance proceedings if any, your property which includes your land or your house, and other social security depending on the amount of debt you have.
The rules in the constitution, forbids the IRS from seizing your property for tax levies without court notice. They basically send you a 30 day notice before, the levy of your property are effective. The notice is send to you either by hand delivery or through mail. The 30 days gap prior to the levy gives you the time to think of alternatives and clear off the debt. This process of intimation is known as the collection due process. You can fill out the mail send by the IRS and request a hearing date, where you can ask for some kind of relief. The hearing date are granted only once to the taxpayers, every financial year.
You must ensure that the hearing for tax levies is held before an officer who is neutral and impartial. An officer with no prior experience in the field will not be able to help you much. On the hearing you can demand for some relief like spouse relief, installment agreement or an offer in comprise. If you are unhappy with the decision made by the officer, then you can always reach out to the tax court or federal district court for further relief.
The internal revenue service (IRS) people can also demand the employers to garnish the wage of the tax debtor and send the amount directly to them. However, under section 6334 some perquisites are exempted from tax levies, which help the debtor in managing through daily living expenses. Once the garnishment starts then it is applicable in future also, until the debt is fully paid off. Federal law also prohibits the employer from firing the employee whose wage is garnished, however, if the employer fires the employee then he has to either pay fine or a year imprisonment as penalty.
You can get in touch with professional counselors; they will help you in understanding the notice, send to you for tax levies. They can also help you save time of research, and assist you in finding better alternatives of handling the problem. You can also go through the information about handling the situation as well as the rules of levies online. Website search through the library of IRS will help you in getting the details of rules and regulations laid by them. There are also many books available, which contains the federal regulations for levies and the ways of handling.
The rules in the constitution, forbids the IRS from seizing your property for tax levies without court notice. You must ensure that the hearing for tax levies is held before an officer who is neutral and impartial.
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