Az Delinquent Taxes

With simple payment agreements, the IRS will release the levy immediately. That's assuming you haven't already gotten a payment extension. Normally, when you request an extension, you can get up to 120 days.

You can avoid a levy by filing returns on time and paying your taxes when due. If you need more time to file, you can request an extension. If you can't pay what you owe, you should pay as much as you can and work with the IRS to resolve the remaining balance.

Arizona is a tax lien state. The interest rate starts at 16% and the redemption period is 3 years. The interest rate is bid down at the sale. Tax sales are the responsibility of the County treasurer's office and are held in February of each year.

How tax liens work. When a property owner falls behind on paying taxes, county treasurers place liens on properties with delinquent property taxes. If the taxes remain unpaid after two years, the treasurers auction off those liens to investors, who then pay the delinquent tax, recouping money the counties need.

The IRS generally has ten years to collect tax debt, but this period can be extended in some situations. If you are experiencing an economic hardship, you may also be able to get the levy released. You may also be able to apply for currently not collectible status to avoid other collections.

A tax levy (and its cousin, tax lien) is serious business if you owe back taxes.

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.

More In File The IRS can also release a levy if it determines that the levy is causing an immediate economic hardship. If the IRS denies your request to release the levy, you may appeal this decision. You may appeal before or after the IRS places a levy on your wages, bank account, or other property.

To stop a state tax levy, you will need to act quickly.Once you start a payment plan, the IRS will stop the levy. Submit a counteroffer: Your tax lawyer can submit an offer in compromise to the IRS. This offer will request that you pay less than the amount you owe in taxes.