Is There a Way out of an IRS Tax Levy Situation

A CP 90 or CP 297 notice in the mail from the IRS - it's one of the scariest things you ever experience, to open an envelope with one of these notices. An IRS tax levy intimation isn't an unstoppable force that has been set in motion. You still have the power to change its course.

But you have to be quick. You can be one of those people who are too afraid of the IRS to open an e-mail from them. Once you get an IRS tax levy notice, your 30 day clock to respond starts. When your time runs out, they begin delivery process - they come and grab your property or something to pay for what they think you owe them.

No, they aren't going to beat your door down with a battering ram and grab your large screen TV. They'll just send an IRS tax levy notice to your employer and grab your money right at the source.

This is a situation that you don't want, of course. Once your place of employment knows about your tax problems, it isn't going to look good on your employee evaluation. Basically, the IRS, once they set their sights on you, are not going to let go until you either pay up or give them a reason why they have the wrong man.

Now that last part probably has your interest right away - convincing them that they have to wrong man. The first thing you want to do is to get professional help - go to a tax firm and retain them. You need their guidance.

Take a look at all your tax returns and try to look for and find out what the IRS has a problem with. If you owe the IRS anything, of course, it's going to be hard to get them off your case.

After you've taken care of all your back taxes, see your tax professional about putting a 433-F financial statement for the current year together - fully supported with old documentation needed. Once the IRS takes a look at your 433-F, they'll come back to you with their thoughts on how you can put this behind you.

It couldn't hurt if you got yourself abreast of the IRS to find out what expenses the IRS allows in your kind of case. If none of this seems to work for you, you do have other options at your disposal.

You could, for instance, talk to the IRS to agree to an installment plan. They'll ask you to prove to them that you really are unable to pay all their dues right away. But if you do convince them, this could be a perfectly acceptable way to go forward. Or else, if you are able to prove to them that you're too financially challenged to be able to pay them back, you can come back to them with an Offer in Compromise.

You really don't have to worry about having the IRS believe. Most of the time, they are just happy to work with you.