There are several ways the IRS can issue tax levies on your property (i.e. wages, bank/retirement accounts, etc.). The question is- how do you get it lifted? Thankfully, there are different options available so that you don’t have to permanently lose your property. Here are our 4 best ways to get your tax levy lifted:
Submit offer in compromise
If you’ve been issued a tax levy and you have absolutely no way to pay your tax debt, you can submit an IRS Form 656 and make an offer in compromise. This will settle your debt for less than you owe. From there, you can choose to pay 20% upfront and then pay the rest in less than 5 installments, or you can choose to make payments periodically until the balance is fully paid.
Appeal your case
If you disagree with the IRS’ decision to issue you a tax levy and you believe you have a strong argument against it, you can file an appeal. Arrange a CDP hearing when you receive your tax levy to go through the tax resolution process!
Make a Case for Economic Difficulties
If a tax levy has caused your family serious financial difficulty, you will be entitled to petition to get the levy lifted. You can then explain your situation and get the help you need. The IRS may recommend a payment plan or other options to you!
Apply for Innocent Spouse Relief
If the tax levy is based on incorrect information or income that was excluded from your return by your spouse, you may be eligible for innocent spouse relief. If your spouse omitted information without you knowing or you had no knowledge about the issue, you may be able to lift the levy on your property.
Lifting a tax levy is no easy feat. It may seem that the technicalities are running for miles and miles, but if you seek the right help and rightfully exhaust your options, you may turn out to be successful!