If you are in serious debt and fail to take action to remedy the situation, the IRS may levy your property or garnish your wages. A levy is a legal seizure of your property in order to satisfy a debt. The IRS can levy property that you hold — including cars, houses or boats, or property held by someone else — as well as rental incomes, wages and bank accounts.
So does the IRS start seizing funds and property right away? No. The IRS usually looks to see that the following three requirements are met before they levy your assets and/or property:
Your tax was assessed and you were sent a notice of demand of payment.
You neglected or refused to pay the tax.
A Final Notice of Intent to Levy and Notice of Your Right to A Hearing is sent to you at least 30 days before the levy.
Additionally, if the IRS levies your bank accounts, wages, salary or federal payment or state income tax refund, the levy will end under the following conditions:
The levy is released
Your tax debt is paid
The time for legally collecting the tax expires
The filing of a bankruptcy case will stop a levy. If you are faced with a levy or have debt of any kind, we realize you may feel stressed and worried. Get the information you need to help relieve the anxiety. Let one of our lawyers review your situation and give you step-by-step advice on what you should do next. Bankruptcy may be the answer to how to stop the levy and get a fresh financial start.
Posted in Bankruptcy
Tagged Atlanta bankruptcy attorney, bankruptcy filing, filing bankruptcy, IRS