Fresh Start Tax solutions to get your IRS Tax Levy released on wages and/or assets.
The IRS TAX LEVY ON WAGES, 668(W) or the levy on BANK ACCOUNTS 668(A) is the ultimate collection tool of the IRS. This is the IRS’s enforced collection mechanism where they will seize your wages and/or your assets for unpaid back taxes. Below are 10 ways you can legally release a tax levy with the IRS.
1. Pay the tax amount in full. If you can afford it, this is the easiest way of settling back taxes and getting a levy released. If you pay the tax amount owed in full, the IRS will immediately stop all collection actions against you or your company and the levy will be released or removed.
2. Let the Statute of Limitations Expire. The IRS has 10 years to collect taxes from the initial date of assessment. Once the 10 year period is up, they can no longer collect these taxes from you. Keep in mind that the IRS will try to extend this statute of limitations, so be aware of any papers they want you to sign. Also be aware that certain actions extend the statue of limitations, such as bankruptcy or the filing of an offer. If you have not paid the amount owed in 9 years, it is unlikely they will be able to collect from you in the last year. Certain factors influence when cases are sent back to the field. You can read our blogs to find out those factors.
3. Set up an installment agreement. An installment agreement is a payment plan with the IRS. This plan will allow you to pay off the IRS tax amounts owed over time. It usually is a 5 year period of time. It is important to make timely payments once the installment agreement is in place or the IRS can reissue the tax levy or levies.
4. Set up a partial payment agreement. This is similar to the installment agreement, but if you show you can legitimately not make the payments required for an installment agreement, the IRS will allow for smaller payments that may equal less than the original amount of tax owed. These are usually hardship type cases.
5. File an Offer in Compromise. If you meet the strict requirements for this type of relief, the IRS will release the levy. This is one of the hardest types of relief to receive from the IRS because it allows you to settle for far less than you owe.
6. Prove you have no equity in assets. If the assets the IRS are trying to levy have no equity in them, you must prove to the them that there would be no point for them to levy those assets. The IRS will gain nothing from levying them and it will not help pay anything towards your back taxes owed.
7. Prove you have a Financial Hardship. If you can prove to the IRS that the levy creates economic hardship. Some examples of a hardship could be that you are being evicted or have a medical problem that takes most of your wages or assets. If you qualify as a hardship it is likely the IRS will release or remove the federal tax levy.
8. Post a Surety Bond. If you post a surety bond, the levy will no longer be in effect. If a levy is in place, and you cannot pay your taxes, it is highly unlikely you will qualify for a bond. If you do qualify for a bond, you may be better off paying the tax amount owed in full. Your federal tax lien gets released as well.
9. Appeal the Levy. You can appeal an IRS levy and you will have a review if the Internal Revenue Service did not follow correct procedures.
10. File a bankruptcy. Bankruptcy settlement can release a tax levy by court order and return seized assets to you. This should be considered as a last resort. Your taxes must be 3 years or older, assessed for 240 days, and the returns must be filed for a two year period of time.
Fastest and easiest way to release a Levy is to call Fresh Start Tax today. We can get your situation taken care of FAST and get your life back in order, 1.866.700.1040.
About Fresh Start Tax
Call, Chat, or Email us to schedule a FREE CONSULTATION with Expert Tax Attorneys or former IRS agents who can help you with your specific IRS tax problem such as Unfiled Tax Returns, IRS Tax Levy, and IRS Tax Settlements. Fresh Start Tax, LLC., is an IRS Tax Specialty Firm with over 205 years combined IRS tax experience and who has offices located in South Florida since 1982.
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