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Levy Relief

A levy is a legal seizure of your property used to satisfy a tax debt. Even if you are at that point of threat or actual levy, there are many successful ways to stop the action and find alternatives.

If you are subject to a levy, you will receive a notice from the IRS. If you do not pay the tax or contact the IRS within 30 days of the date of the letter, the IRS can and will levy your income, assets and even social security benefits.

  • Automated Federal Payment Levy Program-up to 15% of your SS benefits can be levied
  • Manual levy-there is no restriction as to how much the IRS can seize (but they can take into account reasonable living expenses)

Possible financial relief options:

  • Audit reconsideration-if you did not respond to IRS notices, they may have assessed the liability based on certain assumptions
  • Innocent spouse relief-available if you can demonstrate to the IRS that you were incorrectly assessed for amounts owed solely by a spouse

Determination of Currently Not Collectible Status-you may be able to prove that economic hardship exists and you don’t have sufficient cash flow to pay anything. If this is the case, they are required to stop collection action. This is generally temporary and interest and penalties are continued to be added to your debt.