When you owe back taxes, the Internal Revenue Service may place a levy on your wages or bank account. This can put those who were already facing financial hardship in a worse situation. The IRS does have the authority to garnish wages and place liens and levies on property but if it causes you a hardship there are options that you can explore.
Many believe that not being able to pay their outstanding bills is enough evidence to prove financial hardship, but that is not correct. When the IRS has placed a levy on your wages or other financial account, the situation may create a financial hardship for you if it results in an inability to pay for your basic needs and reasonable living expenses and the IRS will require evidence.
If you are indeed unable to afford your basic needs and basic living expenses as a result of a wage garnishment, you can discuss the matter with the IRS. You will need to provide details regarding your current finances so that you can show the hardship the levy creates. However, even if the IRS agrees that an economic hardship has resulted from the levy, that agreement does not mean that the agency will free you from your tax obligation. They may agree to lift the levy and place you under a currently not collectible status, which means who will still have to pay the taxes at a later time and interest will still accumulate.
While the IRS may remove the levy from your wages or bank account, you will still need to find a way to address your outstanding tax debt. The IRS may provide you with information about their payment plans, currently not collectible status, offer in compromise and other possible resolutions. You will need to apply for approval for any of these programs, as you may not qualify for all of them. Gaining more information and assistance if needed is beneficial. At CuraDebt Tax, we have a team of tax professionals who are able to find the best IRS resolution available to you. Contact us to better understand your tax problems and to choose the best IRS resolution option. CuraDebt has been helping individuals and small businesses for over 22 years nationwide. As of May 2023 CuraDebt received a score of 5 out of 5 on CustomerLobby for a total of 1179 customer views. CuraDebt is an Accredited Member of the American Fair Credit Council. Contact us for a free consultation. 1-877-999-0486. Take advantage of exploring another option for free. Not only do we handle tax relief, we also offer debt relief.
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