subject: How To Understand A Irs Garnishment [print this page] People who commonly owe the IRS a large amount of debt are likely to have a fear about the danger of experiencing a IRS Garnishments. In fact, tax levies often be the one topic that most individuals dread in terms of dealing with the IRS. Normally, these emotions only happen if the individual is unable to pay their tax debt or has not taken any action to alleviate the situation more appropriately.
Essentially, a IRS Garnishments takes place when the IRS seizes your property as settlement for the tax debt that you owe. The law writes that the IRS is not required to take action in a court so as to be approved for their decision. Furthermore, the IRS is permitted to take any kind of property that you have in replace for a payment. This means that property, such as a house, vehicle, or anything of actual value can be used as a settlement for your debt.
The IRS is allowed to trade your property so they can decrease your tax debt or the amount you owe. An additional alternative is that the IRS can confiscate money from your salary and wages to get their payment. Regardless of whether you are receiving money from a loan or have taken out life insurance, the IRS can manage these factors and use them as a technique to get back the money that you owe for taxes.
However, this does not mean that the IRS actively seeks people that it can levy so as to gain additional money. A levy only happens when the person seems to be avoiding making payments. Firstly, the IRS will contact you and clarify that a payment is due for your taxes. If you overlook this contact, they will communicate with you again in the future. If you continue to ignore them or refuse to pay the tax, you will be given a notice about their plan to levy and a hearing will take place in the next 30 days. During this time, if you do not take action, it is guaranteed that you will be levied.
In most cases, the IRS will desire to work with you rather than getting ahold of you about the IRS Garnishments. The use of a levy only occurs if it appears like you are intentionally avoiding making payments or you have refused. Of course, there are also cases where you can receive a levy letter but there is no actual action. For example, if you receive a notice but you have previously made all of your payments, you are not likely to deal with a levy. Additionally, if the IRS has made mistakes in determining the levy, there is not a large possibility that it will actually take place.
Although getting a IRS Garnishments notice is likely to make you concerned about your belongings and what could happen, it can normally be avoided. If you are willing to contact the IRS to tell them about mistakes that they made or payments that you plan on offering, using a levy is less likely to take place.
