Yes, there are several avenues a taxpayer can take to stop an IRS levy, including a wage garnishment. These options include:
- Requesting a collection due process hearing (or “CDP” hearing) or an equivalent hearing. In most circumstances, the IRS cannot collect outstanding tax liabilities while a CDP hearing is pending. These hearings must be requested in a timely manner after receipt of IRS communications regarding an anticipated levy. If you have missed deadlines to file a request for a CDP hearing, you may also request an equivalent hearing, and the IRS may choose to stop a levy but is not required to do so.
- Entering into an installment agreement to repay your delinquent tax liabilities. Taxpayers with relatively low liabilities (under $50,000) may qualify for a streamlined installment agreement under which they may repay their liabilities without filing the more detailed financial disclosures required to request a traditional installment agreement.
- Filing a request for innocent spouse relief addressing the periods with delinquent liabilities.
- Proposing an offer in compromise in which you and the IRS agree to settle a tax debt for less than what is owed.
- Demonstrating your inability to repay your delinquent tax debts so that you may be placed in currently not collectible status.
- Filing for bankruptcy protection, which will suspend collection activity from the IRS and other creditors.
What Is The IRS Procedure For Issuing A Tax Levy To Garnish My Wages Or Seize My Property?
Before issuing a levy, the IRS will send you notices regarding the amount of tax owed, requests for payment, and a warning of the intent to levy. It is important to keep your mailing address with the IRS current so that you receive these notices. You may also receive phone calls from IRS employees warning of possible levy action. Unlike traditional creditors, the IRS does not have to go to court before it begins levying your assets and income to collect from you.
Stop Worrying and Call for Your Free Consultation Today
Please contact the Law Offices of John Sterbick right away if you are considering seeking relief through any one of the options discussed above because each alternative has unique requirements that taxpayers must meet in order to qualify for relief. For example, to qualify for an installment agreement, innocent spouse relief, or an offer in compromise, you must prepare and submit any unfiled returns for all prior tax years. Your call to John Sterbick at (253) 383-0140 can save you untold amounts of time and worry over complex tax problems that the Law Offices of John Sterbick are well versed in and ready to handle for you today.