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Tax enforcement and the IRS levy

On Behalf of | Nov 23, 2020 | Tax Debt

Financial stress can cause many Atlanta residents to feel as if their life is out of control. They may worry about being able to afford their necessities, make ends meet and generally live their lives as desired. Unfortunately, this stress may only become worse if a person has tax debt and is facing a levy from the Internal Revenue Service.

The IRS uses tax levies in attempts to collect on outstanding tax balances. Essentially, the agency uses various approaches to take funds without a taxpayer voluntarily giving up those funds. For example, the agency may use wage garnishment to have funds deducted from a person’s paycheck, or the agency could use bank levies, which involves the bank freezing a taxpayer’s account from allowing withdrawals for 21 days and then having the bank withdraw funds to send to the IRS.

Though these two examples may seem extreme, it is important to note that these are not the only ways in which the IRS could put a levy on a taxpayer who owes funds. However, going this route is typically one of the final attempts the IRS makes to collect. The agency usually opts for other routes first, such as contacting the taxpayer in efforts to receive voluntary payment, notifying the taxpayer that a levy is imminent and giving the taxpayer options to handle the matter first.

If Atlanta-area residents do find themselves facing a levy of some kind from the IRS, they may feel panicked. Fortunately, taxpayers could take steps to have these collection efforts removed. It can be complicated to be released, so concerned individuals may need to explore their available options and consider getting help from tax law professionals.