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5 Options When the IRS Is Going to Levy Your Property


The IRS has the power to levy many types of taxpayer property. If your bank account, wages, or retirement account is going to be levied, consider using any of the following five options to avoid the levy.

Request a CDP Hearing

A collection due process (CDP) hearing is a right given to taxpayers before a levy occurs. The IRS will send you a notice in the mail informing you of your right to request the CDP hearing.

You must request the hearing in writing and within 30 days of the date on the notice. If you miss this deadline, you’ll lose some important rights, such as the right to appeal your case in Tax Court.

Installment Agreement

You can stop a levy by agreeing to a monthly installment agreement. If you have a high income, the installment agreement may result in a much lower monthly payment than the amount that could be garnished from your wages each month.

Work with a tax attorney to make sure you get the best possible terms for your payment plan. You don’t want to agree to a plan that you can’t actually afford.

Offer in Compromise

The Offer in Compromise (OIC) is a tax debt settlement program. Your debt could be settled for less than what you owe, but you need to meet certain requirements.

The IRS will determine your reasonable collection potential based on how much equity you have in your assets and your monthly income available to pay towards your tax debt. If your offer exceeds this amount, you may be able to have your remaining tax debt forgiven.

Currently Not Collectible

Currently not collectible (CNC) status offers a temporary halt to IRS collection activities. It won’t solve your tax debt problems, but it will allow you to avoid the IRS levy for a while.

The IRS may check in periodically to see if your financial situation has changed. If it is, your account may be removed from CNC status, and you’ll once again have to deal with IRS collection actions.

Innocent Spouse Relief

Innocent spouse relief can be used in a variety of situations. The tax debt must be from a joint return that you filed with your spouse or former spouse.

If you qualify, you may no longer be responsible for some or all of your joint tax debt. There are three types of innocent spouse relief, so talk to a tax attorney to see if you may qualify for one of them.

Get help with IRS levies by calling The Gartzman Law Firm at (770) 939-7710. We can listen to your concerns and help you find the best tax resolution strategy for your case.