Effects Of Levy Release On Taxpayer’s Assets

By Kathy Breadmore | November 10, 2009 | Popularity: unranked (?)

A levy release is usually the lifting of a lien or encumbrance on a property by virtue of a legal process or court order. The properties referred to are the assets of the taxpayers which include monies in his bank accounts and his paychecks. In case of failure to comply with such liability within a reasonable period of time, the properties under lien or encumbrance shall be garnished or sold at an auction.

The purpose of levying is to hold the property as a guarantee for fulfillment of obligations. Levying against the home or business grossly affects the person’s both personal and the title to real properties. A lien can be imposed on a person’s paycheck which remains enforced until the levy release is released. The IRS or the Internal Revenue Service usually levies properties of taxpayers who are unable to pay their taxes.

The proceeds of the sale from an auction of a levied property are applied to the unpaid amount of taxes collectible for levy release. This is often an onerous sale and always to the disadvantage of the owner. The fair market value is the basis of such sale which is indeed much less than the actual value of the property being auctioned. This can be harsh as a sanction but that is due process on the principle of dura lex sed lex.

As a reminder too, it is the right of the IRS as branch representing the government to impose sanctions like these as one powers of the State. A levy release attorney otherwise known as a tax lawyer is the best person who can rescue the dilemma of taxpayers with such burdensome obligations. This will surely involve expenses and some court or legal hassles just to settle the liabilities being imposed by the Internal Revenue Service.

The IRS is just an agency that is doing its job and one is to levy for tax purposes. Taxes are the life-blood of the nation and the government is sustained through the process of taxation. Taxation is one of the powers of the state that can be imposed on its citizens and for IRS to grant levy release.

A levy release is usually the lifting of a lien or encumbrance on a property by virtue of a legal process or court order. These properties refer to the assets of the taxpayers that include money in his bank account or his paychecks. Whenever there is failure to comply such liability, said properties will be sold for auction. To know more, visit MartelleLaw.org.

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