Tax levies can be nasty. If a levy is placed on your employment earnings or on your bank account, you may be unable to pay your monthly expenses and support your family or to continue to run your business. In addition, your bank account can be seized, as well as assets like your boat or cottage, which will be sold off to pay your tax debt. While these may be effective means for the IRS to collect what they believe is owed, levies can cause considerable hardship for you. You can, however, negotiate a tax levy release in some cases.
The easiest and fastest way to secure a tax levy release and to get the taxman off your back is to both pay off what you owe in full and file all of your outstanding tax returns, if applicable, or to negotiate monthly payments or some other form of regular instalment payments with the IRS. You can explore options such as borrowing from friends and relatives, or borrowing against your assets, to pay off your debts. If this is not an option for you, you will have to be prepared to prove that the levy causes undue financial hardship for you and in fact decreases your ability to pay what you owe or that an error has been made on your file to secure a tax levy release.
Other options that may be available to you include filing for Currently Non Collectible Status or an Offer in Compromise. While you can apply for these on your own, it may also be a good idea to consult with a tax lawyer for assistance. The great advantage of having a tax lawyer on your case to secure a tax levy release is that they can negotiate with the IRS on your behalf and you will no longer receive collection calls or letters. Many tax lawyers will also only charge you if your case is successful. Your chances of success are also greater with a professional on your side.
