How to stop IRS Levy? The fastest way to stop an IRS levy is to pay your back taxes. However, not everyone has the financial resources to do so. Filing a formal appeal to the IRS is also an option. However, the IRS can ignore your appeal. If you do not have the money to pay your back taxes, you should file a formal appeal. This can help you get some breathing space. Moreover, you can get free tax analysis and consultation from a tax expert.
If the levy is causing you economic hardship, you can file for a status called currently not collectible. This status means that you are not able to pay the tax debt based on your current income and necessary living expenses. However, this doesn’t mean that your debt will vanish. It’s merely a temporary measure until you can pay your back taxes. You may not be able to pay the full amount right away.
Getting an installment agreement is another option. An installment agreement allows you to pay a set amount each month, usually in installments of around eighteen months. Although interest continues to accrue, you will save 50% of your failure-to-pay penalty. But, if your tax levy is still pending, you can request that it be stopped by filing Form 12153 and requesting a Collection Due Process hearing. You must begin the process within 30 days of receiving your notice. You can usually find this date on the notice.
Filing an OIC is another way to stop an IRS levy. However, less than half of all applications are accepted. Therefore, if you want to maximize your chances of success, it is best to work with a tax expert. The Fresh Start Program was launched by the IRS in 2008 in response to the financial crisis. It aimed to make paying back your tax debt easier and more affordable.
If you can’t afford to pay your debt, you can also work with the IRS to set up an installment plan. This option allows you to pay your debt and avoid any levy. You can also appeal the levy. Once you have appealed, you can stop the IRS levy. In most cases, the IRS will work with you and find a solution that works for you. There is no better way to pay back your debt than to negotiate a payment plan with them.
While an IRS levy can lead to severe consequences, you can avoid it and reduce your chances of suffering from the levy by taking action to avoid it. You can use your rights to a payment plan with the IRS to avoid a tax levy altogether. If you do this, you can limit the chances of facing a levy by employing the methods listed below. You should also make sure to make your payments on time so that you won’t miss any payment deadlines.