When you owe the IRS back taxes, the IRS will send you notices stating that you need to pay them back with a civil penalty. After a few standard notices, the IRS may send you a "Final Notice of Intent to Levy." The IRS may also send such a notice to your employer. You will need to respond to this notice within 30 days. Otherwise, the IRS will take every penny out of your bank accounts.
There are two ways to prevent the levy:
A payment plan is an agreement to pay the IRS an amount of money every month until your debt with the penalty is paid off. The amount depends on how much you can afford per month, and can be as little as $25 per month.
Even if you have been placed on a payment plan before and you stopped paying, you may be placed on a new one.
An offer in compromise is an agreement with the IRS, where you pay the IRS a lump sum of money to get rid of all the back taxes and civil penalty you owe them. You do not need to pay the IRS everything you owe, only a smaller sum (for example, 20% of what you owe).
If the IRS took all the money out of your bank accounts and you did not receive any notice in the mail, you may be able to get all of your money back. You need to notify the IRS that you never received a "Final Notice of Intent to Levy" and show a willingness to work with the IRS to pay them back.
A tax lawyer can help you negotiate an affordable payment plan or even help you settle with the IRS. Essentially, a tax lawyer may lower the amount of money you owe to the IRS without putting you in financial jeopardy.
Last Modified: 02-01-2017 02:18 PM PSTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.