If you owe back taxes, you could get hit with a tax levy. When this happens, it’s a very serious matter. In this guide, we explain what a tax levy is and how it can affect you. If you are faced with a tax levy, you’re probably wondering if there’s a way to stop it. To answer that, let’s take a closer look at tax levies.
Tax Levy: What Is It?
Tax levies are actions taken by the IRS that seize your property in an effort to pay back taxes that you owe. Not only do tax levies take your personal property, but they can also result in wage garnishment and the seizure of bank accounts and assets.
If the government has placed a tax lien on you, expect a tax levy to follow. So, what can a tax levy include? The government can legally take possession of your real estate, wages, and bank accounts and can impose penalties on top of everything else. If you want to fight the tax levy, you are strongly advised to seek a tax attorney for legal representation.
Fortunately, there are steps you can take to stop a tax levy from taking place, thus saving you from losing your personal assets. Your tax attorney will help negotiate with the IRS to ensure that you avoid a tax levy and pay off your debt without serious consequences. You may still have to pay interest and late fees, but that’s a much better offer compared to losing your valuables.
Tax Levies and How They Affect You
Not only can you lose some of your most prized possessions (house, car, etc.), but a tax levy can affect you in other ways, as well. For instance, an IRS levy can result in:
Frozen Bank Accounts
Your bank account is at the top of the IRS’s list when it comes to looking for ways to recoup its losses. As such, they can freeze your bank accounts, locking you out of your own money. What’s more, the bank will likely give a portion or even all of your money to the IRS.
You could open your check one day to find that your typical pay is much lower than usual. Or, if your pay is directly deposited into your bank account, you could be in for a rude awakening when you go to withdraw money.
When your bank account is frozen, it can remain that way for 21 days. If you don’t take action at that time to make things right with the IRS, you risk losing your funds.
While it’s true that seizing property is often a last resort, it’s still something you need to be aware of when facing a tax levy. The IRS doesn’t play around, and they will absolutely seize your property if you leave them no other choice.
How to Stop a Tax Levy
Thankfully, you can take steps to put a stop to tax levies, and that means making arrangements to pay off your debt. There are a few ways to go about this, such as getting on a payment plan and making monthly payments until your back taxes are paid in full.
You will still have to pay interest and late fees, but paying off your debt will ensure the prevention of a tax levy. In addition, the IRS may agree to an Offer in Compromise, where you pay off your debt at a lower cost. An Offer in Compromise is best negotiated by your tax attorney, so consider seeking legal counsel to help resolve your tax levy in this manner.
You may also file an appeal if you object to the IRS’s claim that you owe back taxes. Even the IRS makes mistakes, so it’s certainly possible that you don’t owe back taxes. But if you know that you do, there’s no sense wasting everyone’s time with an appeal that will just show you owe. Besides, the delay will only cause more interest and penalties to rack up, so it’s better to address your debt as soon as possible.
And lastly, filing for bankruptcy could help you resolve your tax debt. This should be a last resort, though. It’s better to make a plan with the IRS to pay off your debt with the help of a trusted tax attorney.
Are You Facing a Tax Levy?
Please don’t hesitate to call tax attorney Mary E. King if you are facing a tax levy. She has extensive experience successfully overcoming such tax concerns and can help you negotiate with the IRS to reduce your risk of property seizure.
When you hire the Law Offices of Mary King, you can expect the highest standard of service to ensure that your tax matters are handled professionally.
The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.