Avoiding a Federal Tax Levy in Marietta, Georgia

by | Aug 18, 2020 | IRS Collection, IRS Levy, Tax Tips

Taxpayers throughout Metro-Atlanta, Georgia and, especially in Marietta, Georgia, often contact me about worries of having their money seized (“levied”) by the IRS. Usually, these taxpayers have received an IRS notice and have heard horror stories of how the IRS deal with delinquent taxpayers with a heavy hand. So what do I tell clients on what to do to avoid a levy by the IRS? The answer is three steps that can be easy to do if the client is willing or can be extremely hard and frustrating if the client wants to keep his or her head buried in the sand.

The three steps to avoid an IRS Tax Levy are:

  1. Talk to the IRS and ask what the IRS needs from you;
  2. Get into tax compliance by filing any missing tax returns for the last 6 years and making your current tax payments either through estimated payments or withholding; and
  3. Request a tax collection alternative such as an Installment Agreement, Offer-in-Compromise, or Uncollectible Status based on your financial situation and submit documentation to the IRS to support and confirm your financial situation.

The first step is extremely important. You need to speak to the IRS (or at least someone needs to do it for you) to let it know that you want to resolve this and that you will work with them. The IRS usually resort to levies when it has not heard from the taxpayer despite sending several notices and it needs to resolve the taxpayer’s unresolved debt. The IRS is not in the business of placing economic hardship on taxpayers but unfortunately, nothing else gets the taxpayer’s attention better than enforced collection action such as levies.

Once you do contact the IRS, let them know you will file any missing returns, will get your current tax payments in, and will be submitting a proposal to resolve the tax debt. In doing so you can avoid having the IRS take enforced collection action against you and/or your assets (the “tax levies”).

To work out a deal with the IRS, you are required to be in tax compliance, which again means that you filed the last 6 years of tax returns and are making your current tax payments. The IRS requires tax compliance because the IRS will not agree to get into a payment arrangement or accept an offer-in-compromise with you if you are just going to default upon filing your current return and owing money. So the second step is to get into tax compliance.

Finally, the tax collection alternative that you need to pursue depends on your specific situation. This is an intense fact-driven analysis and I recommend you seek a tax professional (like me!) to sit down with you to see what you will be eligible for. The analysis includes gathering and reviewing documents that will later be sent to the IRS to support and confirm your financial situation.

If you or someone you know is having an IRS issue, please feel free to contact me at either (404) 747-7073, or by email at [email protected].

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