You’ve received a Final Notice of Intent to Levy. You owe the IRS and Virginia, you’ve ignored their requests for payment, and now it’s getting serious. What does it mean? Where do you turn?
A tax levy is not the same as a tax lien. Both are four letter words. Both start with “L”. But a levy is much more serious.
- A tax lien is a notice to the world that an individual or a business owes the IRS. But no money or property is taken by filing a federal tax lien.
- On the other hand, through a tax levy the IRS or state of Virginia collects on your tax debt by seizing your real or personal property
While you may receive the Final Notice of Intent to Levy, it’s usually your bank or employer who receives the actual levy. The property you own—wholly, partially, or jointly with others—may be seized and sold to satisfy your debt to the IRS.
Retirement plans and homes are generally off limits to IRS seizure, as are vehicles needed for work. Most other assets, however, including bank accounts and a portion of your paychecks, can be subject to seizure.
- A tax lien can be the kiss of death to your credit rating—which is bad.
- A tax levy takes money right out of your bank account—which is worse.
The IRS usually files a lien before they initiate the levy process, but they don’t have to. They file about 100 times more liens each year than seize property through the levy process.
ANCHOR ON THIS —> If need tax levy help, and have received a Final Notice of Intent to Levy, contact Anchor Tax Relief today. We’re IRS and Virginia Tax Problem Experts. We deal with the IRS and the Virginia Department of Taxation on a daily basis, obtain relief from liens and levies, and solve your tax problem, permanently.