A tax or taxations is some of the financial charges that are imposed by the government on the public for spending and utilizing those charges on public expenditures. These taxations are imposed on various public expenditures, like the annual income, property taxes, estate taxes, sales taxes, etc. Anyone who fails to pay these taxes can be punished or fined by the government. If failed to pay any pending debts or taxes, the government has the right to impose a Tax Levy on the taxpayer.
A Tax Levy is a legal method of seizing property or a house in return for paying debts. All types of properties like a house, cars, or even cash can be seized legally if the tax amount imposed on it is not paid timely. A levy is sometimes confused by a lien, however, both of them are two different procedures. A levy is imposed and exercised when a property or cash is seized to satisfy the tax debt, whereas a lien is exercised as a security for the tax debt. A levy allows the government to legally sell or seize property to pay the tax debts that are pending. Levies are usually exercised and carried out by a tax authority like an IRS (Internal Revenue Service) or a bank. An IRS is an authorized government agency that collects the government taxes and has the right to legally send notice to the taxpayers who are not willing to pay the taxes. An IRC (Internal Revenue Code) is an authorized body that allows levies to collect pending and unpayable taxes and return those to the government.
IRS has the right to send a final notice to those taxpayers who are neglecting or refusing to pay the tax after several reminders. This is also known as a levy notice. A levy notice is sent at least a month prior to the hearing date and it is mandatory for the taxpayer to attend the hearing. Taxpayers who are dealing with IRS and are in tax debts also tend to go for a joint tax return policy, where the husband and a wife can together pay the tax amount. However, for that, the couple must have been married before the end of the tax year. Both, the husband and wife are working and have a good amount of monthly income and hence, decide mutually and pay the tax amount. This way, your tax amount could be lower, and wouldn’t be a burden for any one of the spouses.
