Tax Levy Need to Know for Business

Written by Posted On Wednesday, 26 April 2017 00:10
Tax Levy Tax Levy

If you have your own business, it’s important that you know and understand the tax law, and also how tax levies will influence your life and business. Tax levies are the tool which is used by the government and IRS to collect what is yours.

They will be allowed through a levy to take any of your belongings or assets, as well as cash out of the bank, and even earnings in the future to cover your tax debt. With the help of a professional accountant, it’s quite possible to either stop or prevent it from happening.

The basic about tax levies

Once you get into debt with your tax, it’s the worse debt to try and eliminate. Even if you declare bankruptcy, it doesn’t always fall away. The government and tax authority’s poses much more power as what normal creditors have.

Tax levies has the biggest power, because the IRS can seize your property to cover the debts, and win the judgment without even going to the court. They can also be right at the top of the list of creditors, and collect what you owe to them before any other creditor.

What they can do with a tax levy?

The levy can give them the right in taking your assets and property, and it will can done in different ways.

These methods include:

With a bank levy

This makes it possible to withdraw your money in the bank and allocate it to the IRS.

Through a wage garnish

You might pay yourself a salary through the business. Well, a certain portion of that will be claimed every month to pay the IRS for your tax debt.

Seizing of your assets and properties

They can take your property and assets like your car, house, machinery or office equipment, and the proceeds of the sales will go to pay any tax debt.

Any tax refunds that is owed to you

All tax refunds from the municipality or the state that is owed to you will be paid over to the IRS and not to you.

These are only a few ordinary examples for applying levies, but they also have other levies that can be applied to your assets.

When you receive a tax levy

It’s a possibility to receive a tax levy if there is money that you owe to any tax authority or the IRS. However, they normally send notifications as your last chance to fix it before they seize your property or assets, in the hope that you will find a way to prevent it.

You will receive more than one letter before action will be taken with a levy. Therefore, it’s important to check your mail regular, and make sure your address did not change. Communicate and visit your tax offices if you are going through a financial crisis.

By the time you get the final notice and a notice for a hearing, you can be sure that the levy will be imminent. It will be wise to try and clear the problem up immediately.

How to avoid a tax levy

Pay your tax in full

The best way to avoid problems with tax levies will be to pay your taxes on time when they are due. If this is not possible, and you have problems with taxes, make an appointment with their offices to find another solution. You can also contact your accountant for some assistance and recommendation about your taxes.

Arrange to pay over a certain period of time

You might have a financial crisis and can’t pay the tax bill a hundred percent when it’s due. Therefore, you can formalize a payment plan together with your tax office, which will allow you to do your payment over a longer time period. This can show the IRS that you are willing to pay and don’t just ignore your responsibilities.

It’s also possible to make an offer

Try to negotiate a settlement of your debts and compromise with the tax office. Through showing them that you won’t be able to pay the amount, due to expenses, your income, as well as your assets. If you are successful, they can allow you to pay a smaller amount as what your total tax bill is.

Rate this item
(0 votes)

Agent Resource

Limited time offer - 50% off - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.