I HAVE A STATE TAX LEVY AGAINST ME BEING TAKEN OUT OF MY CHECK EVERY TWO WEEKS. I AM UNABLE TO AFFORD THE AMOUNT THEY ARE TAKING OUT OF MY CHECK. THE STATE OF SOUTH CAROLINA HAS ALREADY TAKEN MY STATE AND FEDERAL TAXES. I NEED HELP STOPPING THIS LEVY.

It sounds like you’re facing a difficult situation with a state tax levy. Here’s a breakdown of how to approach this and potential solutions:

1. Understand the Levy

• Determine the Type of Levy:
  • Income Tax Levy: This is the most common type, where money is directly withheld from your paycheck to satisfy an unpaid state income tax debt.
  • Other Tax Levies:
    • Sales Tax Levy: If you have an unpaid sales tax debt, the state might levy your income to collect it.
    • Property Tax Levy: While less common for income withholding, if you have significant property tax arrears, it could lead to income garnishment in some cases.
• Review the Levy Notice: Carefully examine the levy notice you received. It should include:
  • The amount of the levy.
  • The reason for the levy.
  • Your rights and options.
  • Contact information for the relevant state agency.

2. Explore Options

• Contact the State Tax Agency:
  • Explain Your Situation: Clearly explain your financial hardship and inability to afford the current levy amount.
  • Negotiate a Payment Plan:
    • Installment Agreement: Propose a payment plan with smaller, more manageable installments. Be prepared to provide documentation of your income and expenses.
    • Offer a Compromise: In some cases, you might be able to negotiate a settlement for less than the full amount owed.
• Seek Professional Help:
  • Tax Attorney: A tax attorney specializing in tax resolution can:
    • Advise you on your legal rights and options.
    • Negotiate with the state on your behalf.
    • Represent you in any legal proceedings.
  • Tax Preparer (Enrolled Agent): An Enrolled Agent is a federally licensed tax professional who can also provide guidance and assistance with tax resolution matters.

3. Gather Necessary Documentation

• Proof of Income: Recent pay stubs, W-2 forms, and other income documentation.
• Proof of Expenses: Bank statements, rent/mortgage receipts, utility bills, medical bills, and other expense records.
• Levy Notice: Keep a copy of the original levy notice.

4. Consider Legal Protections

• Bankruptcy: In some cases, filing for bankruptcy may stop or significantly reduce the amount of the levy.
• Exemptions: State laws may offer certain exemptions from income levies for essential living expenses.

Important Notes:

• Act Promptly: Don’t ignore the levy. Contact the state tax agency as soon as possible to discuss your options.
• Keep Records: Maintain detailed records of all communications, payments, and agreements with the state tax agency.
• Be Honest and Transparent: Provide accurate and complete information to the state agency.

Disclaimer: This information is for general guidance only and does not constitute legal or financial advice. It’s essential to consult with a qualified tax professional or attorney for personalized guidance based on your specific circumstances.

I hope this information helps you understand your situation better and find a solution to this challenging issue.