Texans who are confronted with tax issues should be aware of the steps the Internal Revenue Service can take. There are many terms that could be difficult to understand. When dealing with the challenges and concerns related to IRS tax law, it may be wise to think about the future and understand IRS tactics are so a viable defense can be used to avoid the worst consequences.

One tactic the IRS uses when there is unsatisfied tax debt is a levy. With a levy, the IRS can seize a person’s property. Levies are allowed if a person is delinquent in paying his or her taxes. This will apply to any property that the taxpayer owns or for which there was already a lien. There is certain property that can be exempted under the Internal Revenue Code (IRC). The IRS is required to take certain actions prior to issuing a levy.

There are three basic requirements before the IRS can move forward with a levy: if the IRS sent the taxpayer a tax bill and it went unpaid; if the taxpayer is found to have neglected or outright refused to pay it; and if there was a final notice sent with the notification that there is an intent to levy. The IRS can give this notice a minimum of 30 days before issuing the levy. It can be done in person, left at the individual’s residence, at his or her workplace, or send it in the mail with a return receipt.

Levies can be issued when a person has failed to pay the necessary taxes and the IRS decides that the levy is the appropriate response. It can go beyond property the person owns and extend to property that belongs to the taxpayer, but is held elsewhere. That includes a bank account, a license, a retirement account, the cash loan value for a life insurance policy and more.

Few things stoke as much worry as being informed by the IRS that there are collection actions being taken. A notice of levy will undoubtedly cause fear that a person’s property is set to be taken for supposed IRS tax debt and lives will be turned upside down. For people confronted with any tax issue based on IRS tax law, it may be wise to have legal assistance. A law firm experienced in helping taxpayers might be able to help.