A levy is the formal taking of your assets to pay off a tax debt. Liens are distinct from levies. A levy certainly takes the property to pay the tax bill, whereas a lien only makes a legal claim against the asset to secure payment of the unpaid taxes.
tax relief is reductions provided and managed by the internal revenue service. The Internal Revenue Service is the revenue service of the federal government of the US, and it is in charge of overseeing the Internal Revenue Code and processing federal income taxes.
Discussed below are some ways to avoid IRS levies.
1. Track your expenses and income
In order to manage your debt, it is imperative that you keep track of your expenses and income. Tracking your expenses and income on a spreadsheet is an excellent way to do this. You can also use an online budgeting tool like Mint or YNAB (you’re not alone if you’ve never heard of these), but these programs will only tell you what happened in the past – not how much money was coming in over the month.
If all else fails, there’s always old-fashioned record keeping like writing down everything that comes into or goes out of your bank account each week; making sure all bills are paid on time; keeping copies of receipts for anything purchased; making notes whenever something changes about your financial situation (for example: if someone dies).
2. Report your income on time
You should always report your income on time. If you’re unsure whether you must file a return, consult an accountant or tax professional. In some cases, failing to do so can lead to IRS levies and garnishments.
In other cases, it could mean back taxes owed by the IRS will increase because of late reporting by individuals who don’t pay their taxes in full by April 15th each year (or within 45 days after filing).
3. Hire an Expert
Hiring an expert can help you avoid a levy and garnishment. You may be able to obtain tax relief from the IRS if you have not been paying your taxes in full or if there is some other mistake on your part.
Suppose you are having trouble dealing with the IRS. In that case, you must contact an experienced tax professional as soon as possible so that they can help prevent any further problems from arising from this situation.
The best way to start looking for someone like this would be by asking friends or family members who may know someone who has dealt with similar issues.
4. Keep in Contact with IRS
If you are subject to an IRS levy or garnishment, the agency will want to know about your financial situation and how it affects you. The IRS will also want to know about your income, taxes, recent tax returns, and payments.
They may ask for copies of these documents and any other information that might help them determine whether or not there’s been a violation of the law. The best way to avoid an IRS levy is by keeping good records on all aspects of your finances.
Conclusion
One of the most vital things to avoid an IRS levy or garnishment is ensuring your tax return is filed and paid on time. The IRS cannot collect from you if they haven’t seen any income.
They can’t even levy when they get an extension because there’s still no proof that they’ve gained anything from the taxpayer in question. The best way is to hire a professional tax service provider to know about it in detail and take the necessary steps.
Also read: IRS Tax Debt Relief Program: How to Resolve Your Debt with The IRS?
