Handling your business’s bookkeeping can be tricky, especially when you’re trying to understand IRS terminology and regulations. Working with an experienced accountant will help you avoid the confusion and take much of the stress out of tax preparation. However, it’s best if you understand at least some of the terms the IRS uses regarding your accounts, taxes, and the filing process. At Selph and Friday CPA in Texarkana, TX, their dedicated staff wants to help.

Here, they explain what a levy is and how it impacts your company.

What Is a Levy?

A levy is an action the IRS takes to secure repayment of tax debt if you’re unable to pay or fall behind on filing in the first place. The levy allows the government to seize your real and personal property and counts its value toward what you owe. Once seized, the government has the freedom to do with the items as they see fit, as you lose all possession and rights.

When Does the IRS Decide to Place a Levy on an Individual?

Luckily, you will not incur a levy immediately. The IRS will first send you a notice of owed taxes and give you an opportunity to arrange payments to cover the debt. Should you fail or refuse to do so, they’ll send you a Notice of Intent to Levy, specifying the property in question, and allow you to attend a hearing. Once these are received, you’ll have at least 30 days to work with the IRS or else your property will be seized. Working with an accountant to ensure that your taxes are filed and paid on time will greatly reduce the risk of a levy being assessed on your property.

Save yourself the stress and strain of managing your business’s tax preparation and bookkeeping. An experienced accountant at Selph and Friday CPA will handle all your tax preparation needs. They have nearly 30 years of experience helping clients achieve the best possible outcome in difficult situations. Visit them online for more information about their services and call (903) 792-0281 to schedule a consultation.