If the IRS levies (seizes) your wages, part of your wages will be sent to the IRS each pay period until:
- You make other arrangements to pay your overdue taxes,
- The amount of overdue taxes you owe is paid, or
- The levy is released
How to Stop the IRS from taking your home
The IRS does not like seizing homes. The Taxpayer's Bill of Rights discourages the IRS from seizing primary residences. Also, the IRS doesn't like the negative publicity generated by seizing homes. As long as you are working to get into a collection alternative you will likely be able to keep your home, unless your home is particualrly extravagant. Also, IRS collectors cannot just decide on their own to seize your home. The IRS must first get a court order, which can be contested.
How to stop an IRS levy
The IRS will levy bank accounts, or even IRAs that have your social security number listed on them. Think about that. If you have a joint account with anyone (even a dependent child), the IRS is free to levy that bank account completely if you have ignored them. There is no such thing as not being the primary account holder. If you are a co-owner of any account, the IRS will assume you have total access to all of the funds. To get the money back you must prove it didn't belong to the person being levied, or prove that it will cause a financial hardship.
How to stop the IRS with debt collection statutes
The IRS only has a limited amount of time to collect on a tax debt. There are ways to use this law to your advantage, but then there are countless stories of people who thought they could game the IRS system and wound up hurting themselves. You need to thoroughly understand the ins-and-out the IRS debt collection statutes. Click here for more detailed information.
How to stop the IRS from filing a tax lien
This is harder than it may seem. A federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government's interest in all your property, including real estate, personal property and financial assets. There are specific cases where the IRS is mandated to file a lien. The key here is getting your case in front of an appeals officer who will have the discretion to order a lien not be filed. You will need to have detailed information and understand how to present it to the appeals officer to put you in the best possible light.