It is extremely dangerous to sit and “ignore” IRS problems because a large accumulation of IRS tax penalties can lead you to eventually lose your home. Recently, an individual whose IRS penalties (debt and interest) were so high, she could not find a suitable alternative to pay back the IRS other than to give up her primary residence.

CCH (http://tax.cchgroup.com) reports:

Levy on Individual’s Principal Residence Judicially Approved

A levy on an individual’s principal residence was judicially approved because all statutory requirements relevant to the levy were met and the individual did not establish that a reasonable alternative existed to satisfy her unpaid tax liabilities. Her offer of the proceeds from a home equity loan and the amount of wages already garnished by the IRS was insufficient to fully satisfy her liabilities, including interest and penalties. On the other hand, the levy and sale of her residence would permit the IRS to recover substantially more than the offer and presented the possibility of full satisfaction of the individual’s debt. Moreover, the court could not require the IRS to settle or forgive penalties and interest in lieu of seeking a levy.

Other forms of levies include bank levies–which can be extremely harmful to your financial well-being. In a bank levy, the IRS essentially has the power to freeze an amount of money in your bank account up to whatever is owed and taking this money after 21 days.

Don’t lose your home to the IRS. If you find yourself in trouble with the IRS, it is important that you contact a professional tax attorney right away to help you resolve the problem. The worst thing anyone in trouble with the IRS can do is to “sit it out” and avoid the issue—it will only get worse with time and a lack of open communication with the IRS.

At Tax Resolution Services, we take over the communication aspect from our clients so that our clients never have to talk directly with the IRS. We have a success rate of 90% (2nd best in the industry) and OIC Settlement Rate of $0.13 on the Dollar. Contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site  for a free tax relief consultation or call us at 866-IRS-PROBLEMS.

More Tax Help, IRS News and Tax Relief Tips:

1. Why the IRS Picks on Small Businesses and How to Avoid Triggering an Audit
2. How to Negotiate an IRS Installment Agreement and Set Up a Payment Plan for Your Tax Debt
3. We’ve Expanded to Help More Taxpayers Resolve Their IRS Tax Problems!
4. What the IRS May Not Tell You About Payment Plans
5. KLOS Tax Tip #44: Individuals Get a Tax Break - But Get Tax Help if You Owe Back Taxes!

Tags: IRS help, IRS levies, IRS problem solver, irs problems, levies, levy, Michael Rozbruch, tax advice, tax audit, tax problems, tax relief, Tax Tips

This entry was posted on Wednesday, July 29th, 2009 at 2:21 am and is filed under Tax Liens and Levies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.