Tax debts that go unpaid may lead the IRS to take possession of a taxpayer’s property in a procedure called an IRS levy.<\/p>\n
The IRS is empowered by the federal government to take extreme measures to hold taxpayers responsible for paying their taxes.\u00a0 Refusing to pay back taxes can trigger a levy whereby the IRS seizes your property in order to sell it.<\/p>\n
The IRS can prevent you from receiving a tax refund.\u00a0 The IRS may also take a portion of your wages or other financial assets such as retirement accounts and tax refunds in order to satisfy your tax debt.<\/p>\n
READ: IRS Tax Debt Relief<\/a><\/p>\n How To Handle an IRS Levy<\/strong><\/p>\n The IRS will send you a notice to notify you of past due taxes.\u00a0 Respond to the notice by following the instructions included.\u00a0 Pay the taxes due if you can.\u00a0 That’s the quickest and least painful way to avoid any further collections by the IRS.\u00a0 If you are able to pay, then you should pay.\u00a0 It may even be advisable to borrow money in order to pay past due taxes and to avoid the IRS collection process. Further delay will only make the situation more expensive for you in interest and penalties.<\/p>\n If you cannot pay your taxes now, you still must respond to the IRS notice.\u00a0 Inform the IRS that you are unable to pay.\u00a0 You may be able to apply for a payment plan or installment agreement — where the IRS allows you to make a series of reduced payments until your debt is paid off.\u00a0 Call the number on the notice to find out how to arrange a payment plan or installment agreement.<\/p>\n