Avoid Harmful Levies by Paying Taxes Promptly

Owing back taxes

Prior to 1776, the American Colonies were subject to taxation by the U.K. In 1787, however, the U.S. Constitution authorized the federal government to lay and collect taxes, but required that some of them be given to the states. Nowadays, many individuals might owe IRS money because they owe IRS back taxes. Although it might be easier said than done, it is important for individuals to make sure that they clear debts and, if they owe irs money, make sure that they pay it in order to avoid costly penalties that arise for people who owe back taxes to IRS.

When owing back taxes, people who owe IRS money can face various types of penalties. By using the powers granted to the IRS in the Internal Revenue Code, the IRS is able to place levies on wages, social security payments, accounts receivables, bank accounts, real property, insurance proceeds, and, at times, personal residences. On top of that, the IRS can levy upon assets that are in the possession of the taxpayer, which is called a seizure, or it can levy assets of a third party like a bank or brokerage house. In order to avoid this issue, anyone who might owe IRS money should take steps towards clearing their debts.

Luckily, individuals who may owe IRS money will be provided with a notice of an upcoming levy and given an opportunity to be heard, in order for the IRS to comply with the U.S. Constitution. If more time is allotted after that hearing, working with a professional might be the best option for someone if they owe IRS money. Doing so can prove to be very helpful. Read more about this topic at this link.

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