Tax Levy

If you owe back taxes and have ignored IRS notices, you risk an IRS levy. A levy allows the IRS to legally seize property, bank funds, or wages to settle your debt. The IRS follows strict processes, but the impact on your life can be significant. Understanding IRS levies can help you act strategically and get the professional assistance you need to safeguard your assets.

An IRS tax levy is a seizure of your property to pay a income tax debt owed. A tax levy is different than a income tax lien. A tax lien is similar to a mortgage on your property, and is used to make a claim against the property as a security interest. An IRS tax levy is used to actually take the property once a tax lien is placed on the property.

You may receive this notice for various reasons, including filing a tax return without full payment, IRS adjustments leading to additional tax liability, or unpaid taxes due to an audit. CP14A is a balance due notice sent to those with existing installment agreements, requiring no additional action unless the balance is incorrect.

Meeting your tax obligations each year is hard enough. What if you start receiving notices from the IRS? This may happen if you make a mistake on your return or you can’t afford to pay your tax debt. Whatever the reason, IRS notices need to be taken seriously.

An LT11 Notice of Intent to Levy is sent by the IRS to taxpayers to inform them of their unpaid tax balance and the potential seizure of their assets.

If your business has fallen behind on taxes in New York, you could face more than just collection letters. The New York State Department of Taxation and Finance (DTF) and, in some cases, the IRS, have the authority to physically shut down a business that fails to resolve its tax debts.

An alter ego levy is when the IRS seizes assets owned by your alter ego to cover your tax debt. If you've received notice of an alter ego lien or levy, you need to take action – this is not routine tax debt collection, and generally, the IRS only pursues this route when they believe you are hiding assets or they have the right to pierce the corporate veil due to co-mingling.