Metro Area: Bridgeport, Stamford, Norwalk CT MSA
Tax levy is undoubtedly the most dreadful weapon of IRS against any taxpayer. If you are living in Bridgeport, Stamford or Norwalk and you have received a levy notice from IRS, you must take necessary steps to stop the IRS levy and avoid wage levies, paycheck garnishments, bank levies and the seizure of your property.
U.S Federal law, under section 6331, gives IRS the authority to seize the property of a tax defaulter, without going to court. However, under section 6330(a)(2), IRS must send a notice 30 days prior to levy taking place.
If you have received this notice, it means levy is evident. Let us discuss different approaches that can be adopted to avoid this unwanted situation.Wait and Watch
Sometimes the tax lien expires without the issuance of a notice of IRS levy, however, IRS can easily get an extension in lien which means that the danger of levy is still hanging over your shoulder. Many people adopt, wait and watch policy and hope the problem will disappear somehow, but this clearly, is not a wise option to avoid an IRS tax levy.Pay Back Your Taxes
By paying back your taxes you surely stop the IRS levy, even if you have not filed a tax return for quite sometime. The tax lien and possibility of levy will be removed within thirty days. Although this method may sound perfect on the paper yet when you are already in financial crises, paying back your taxes is not an easy option.Collection Due Process (CDP) or Equivalent Hearing
You are eligible for CDP if you have received a notice of intent to levy from the IRS. Then you have 30 days to fill out Form 12153 and request a hearing. The hearing is held before an unbiased, impartial hearing officer, known as appeals settlement officers. This hearing may result in challenges to the collection actions, you may seek innocent spouse relief, and you may negotiate alternative collection actions such as installment agreements or an offer in compromise OIC.Offer in Compromise (OIC)
OIC is a reasonable option for most of the tax defaulters in a financial hardship, as you have to pay a reduced amount instead of the full amount owed. The IRS will consider your OIC request if it sounds reasonable to them.
Under section 6331, the levy stops if your offer is processable i.e. all the paperwork is complete and the form is filled properly. But if any of them is not complete, the IRS will return the documents and can then levy you. All this paperwork, form filling and carrying out the OIC process in an apposite manner is not so easy. You can improve your chances of an OIC settlement by consulting an experienced tax negotiator such as an enrolled agent, CPA or a tax attorney with good reputation and high expertise in this field.