IRS Levy

Today TaxMama hears from Mike in Arizona who has this problem. “I have a notice of levy for three years of back taxes. I can’t afford full payment but can send about $300 per month to keep them satisfied. “

Dear Mike,

That levy notice means, if you don’t do something FAST, IRS will take all the money that was in your account on the day the levy hit the bank.

Not money that comes in the next day or week or… Just the money that’s in the account that day.

You can stop the levy by calling the phone number on the notice and arranging a payment plan.

Depending on how much you owe, you may be able to arrange to pay $300 per month. Or not. If the balance is much too high.

You can figure out how much IRS thinks you can afford to pay by filling in a Form 433-A just for your own information – before you IRS or submit your proposed payment plan.

http://www.irs.gov/pub/irs-pdf/f433a.pdf

Fill out Form 9465, the Installment Payment Request
http://www.irs.gov/pub/irs-pdf/f9465.pdf
And have that handy when you call IRS.

If you owe $10,000 or less, can pay the balance off within 3 years, and meet certain conditions, IRS will automatically accept your proposed payment plan.

Incidentally, for total balances of $25,000 or less (including penalties and interest), you can use the Online Payment Agreement
http://www.irs.gov/individuals/article/0,,id=149373,00.html

Whatever you do, do it quickly. Either talk to IRS immediately, or get a tax professional to do it for you.

And remember, you’ll find answers to lots of questions about tax levies and other tax information, free. Where? At TaxMama.com

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