Taxation & Estate Planning

How to Avoid IRS Paycheck Levies

By Darrin Mish

Every taxpayer should know about IRS paycheck levies. This is more so if you are presently contending with the IRS over your tax debts. According to current laws, the IRS can take up to 75 percent of your salary. The IRS will only allow you the amount of money you need for bare necessities like food and shelter every month. If you want to avoid this state of affairs all together, follow the tips below.

Firstly, you should never ignore any correspondence from the IRS. The letters start out polite and typically don't even sound threatening, but if you ignore them and don't take any action to resolve your debt, they can take on a darker, more threatening tone. You must be serious in dealing with the IRS and that includes keeping channels of communication open at all times. Ignoring the predicament will not make it go away, so do what you can to respond and discuss with IRS agents that have contacted you.

Secondly, bear in mind the extent and limits of what the IRS can do. For example, the IRS does not consider other debt that you may have, such as credit card bills, as living expenses. Whether you default on your credit card debts or other loans is immaterial. In fact, just about the only exception is child support. Child support is not included in IRS paycheck levies but you must inform them about your situation and seek exemption.

Most of the time, there are ways to overcome your tax problems but you have to be civil in discussing them with the IRS. Of course, you will not have your levy removed completely just by being polite, but you can put off the situation as long as possible by dealing in good faith and showing that you take this situation seriously. Do not get caught in an ego battle with the IRS.

Finally, most times you may be able to avoid an IRS paycheck levy by just working out a mutually acceptable payment plan with them. Again, many avoid doing this because they feel that they have been wronged or that they do not deserve the levy in the first place. If you can put your ego aside and do what is best for your pocketbook, agreeing to a payment plan, if nothing else, buys you a bit more time so you can figure out what to do. You need to avoid an IRS paycheck levy at all costs and by carrying out some of the suggestions in this article, you can stay ahead of the game.

How to Avoid IRS Paycheck Levies is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on January 23, 2010 (boomark / email).