Tax Relief Blog
When the Internal Revenue Service (IRS) imposes a wage or bank levy, it can create a significant financial strain on individuals and businesses alike. A levy is a legal seizure of property to satisfy a tax debt, and when it comes to wages or bank accounts, the impact is direct and immediate. However, there are avenues for obtaining relief from these levies, and understanding these options is crucial for those affected.
Get professional representation help today 1-877-78-TAXES [1-877-788-297].
Understanding IRS Levies
The IRS may issue a levy only after it has assessed the tax and sent a Notice and Demand for Payment, you have neglected or refused to pay the tax, and it has sent a Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days before the levy. A levy on wages is continuous and will remain in place until the debt is paid or the levy is released. A bank levy, on the other hand, is a one-time seizure of the funds that are in the account at the time the bank processes the levy.
Steps to Address and Release a Levy
Review the Notice Carefully: When you receive a levy notice, it’s important to review it thoroughly to understand the amount owed and the reason for the levy. The notice will also provide instructions on how to appeal the levy.
Contact the IRS Immediately: If the levy is causing an immediate economic hardship, contact the IRS at the telephone number on the levy or correspondence. Explain your financial situation to them. Service is available from 8 a.m. to 8 p.m. local time, Monday through Friday.
Appeal the Levy: You have the right to appeal before an independent Office of Appeals if you disagree with the levy. The appeal must be requested within 30 days of the date on the notice.
Seek Professional Help: Consider consulting with a tax professional, EA, CPA, lawyer, who can provide guidance and represent you in dealings with the IRS.
Set Up a Payment Plan: If you cannot pay the full amount, you may be able to set up an installment agreement with the IRS, which can result in the release of the levy.
Consider an Offer in Compromise: In some cases, you may be able to settle your tax debt for less than the full amount through an Offer in Compromise.
Prove Financial Hardship: If the levy is creating an economic hardship, the IRS may release the levy. To qualify, you must demonstrate that the levy prevents you from meeting basic, reasonable living expenses.
Correct Mistakes: If the levy was made in error, was wrongfully executed, or the IRS did not follow proper procedures, the levy can be released.
Preventing Future Levies
Stay Compliant: File your tax returns on time and pay any tax due promptly to avoid future levies.
Adjust Withholdings: If you are an employee, ensure that your employer is withholding an adequate amount from your paycheck to cover your tax liability.
Make Estimated Tax Payments: If you are self-employed or have other sources of income, make quarterly estimated tax payments to avoid a tax bill at the end of the year.
Keep Accurate Records: Maintain accurate financial records to ensure you can quickly address any IRS inquiries or discrepancies.
IRS wage and bank levies can be overwhelming, but there are several strategies to manage and potentially release such levies. It’s important to act quickly and understand your rights and options. By engaging with the IRS, setting up payment plans, or proving financial hardship, you can work towards a resolution. Always keep accurate records and stay compliant with tax laws to prevent future levies. If necessary, seek the assistance of a tax professional, EA, CPA, lawyer, who can navigate the complexities of tax law and IRS procedures on your behalf.
Remember, the key to dealing with IRS levies is to communicate with the IRS and take proactive steps to resolve the underlying tax debt. With the right approach, it is possible to obtain relief and move forward with greater financial stability.
Get professional representation help today 1-877-78-TAXES [1-877-788-297].
Tax liens can be a significant burden for taxpayers who find themselves in debt to the IRS. A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property, and financial assets. However, there are several strategies and relief options available to taxpayers who are facing a federal tax lien.
Understanding Federal Tax Liens
A federal tax lien arises after the IRS assesses a liability, sends a bill that explains how much you owe (Notice and Demand for Payment), and you neglect or refuse to fully pay the debt in time. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.
Consequences of a Federal Tax Lien
A tax lien can have a substantial impact on your financial well-being. It can possibly:
Damage your credit score.
Affect your ability to sell or refinance property.
Hinder your ability to obtain new credit.
Impact business assets, including accounts receivable.
Attach to future assets acquired during the duration of the lien.
Steps to Obtain Relief from a Federal Tax Lien
Pay Your Tax Debt in Full: The most straightforward way to get rid of a federal tax lien is to pay your tax debt in full. The IRS will release your lien within 30 days after you have paid the tax owed.
Installment Agreement: If you cannot pay in full, you might consider an installment agreement. In some cases, the IRS may withdraw a lien if you enter into a Direct Debit Installment Agreement and meet certain conditions.
Subordination: While it does not remove the lien, subordination allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage. You must apply using the IRS Form 14134, Application for Certificate of Subordination of Federal Tax Lien.
Discharge of Property: This action removes the lien from specific property. There are several provisions in the Internal Revenue Code that determine eligibility. To apply, use IRS Form 14135, Application for Certificate of Discharge of Property from Federal Tax Lien.
Withdrawal: A lien withdrawal removes the public Notice of Federal Tax Lien and assures that the IRS is not competing with other creditors for your property. However, you are still liable for the amount due. Form 12277, Application for Withdrawal, can be filed after certain conditions are met.
Offer in Compromise (OIC): An OIC allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability or doing so creates a financial hardship.
Innocent Spouse Relief: If your spouse or former spouse failed to report income, reported income improperly, or claimed improper deductions or credits, you could be eligible for innocent spouse relief.
Statute of Limitations: The IRS has 10 years to collect outstanding tax liabilities. This is measured from the date the tax liability was assessed. After this period, the lien may become unenforceable.
Preventing a Federal Tax Lien
File on Time: Always file your tax returns on time, even if you cannot pay the tax owed.
Communicate with the IRS: If you expect to owe, contact the IRS to discuss payment options.
Make Payments: Make tax payments or estimated tax payments on time to avoid future liens.
Dealing with a federal tax lien can be stressful, but understanding your options can alleviate some of that stress. Whether it’s paying the debt in full, setting up a payment plan, or exploring other relief options like subordination, discharge, withdrawal, or an offer in compromise, there are ways to manage and potentially remove a federal tax lien. It’s important to take action quickly to minimize the impact on your credit and assets. If you’re unsure of how to proceed, consider consulting the IRS website or a tax professional, EA, CPA, lawyer for guidance.
Remember, the best way to avoid a federal tax lien is to file your taxes on time and pay any tax due promptly. If you find yourself in a situation where you’re unable to do so, reach out to the IRS to discuss your options before a lien is filed. With the right approach, you can resolve your tax issues and move forward with financial confidence.
Get professional representation help today 1-877-78-TAXES [1-877-788-297].
Tax Trouble? Untangling Levies and Liens with Professional Relief – EA, CPA, lawyer
Tax season may come and go, but the stress of unpaid taxes can linger like a dark cloud. When debts escalate, the IRS and state agencies wield powerful tools like tax liens and levies to enforce collection. These can feel like financial handcuffs, hindering your ability to access credit, secure employment, and live comfortably.
But fear not, taxpayer! You’re not alone in this battle. This article demystifies tax levies and liens, offering insights and outlining a crucial step towards resolving your tax problems: seeking professional tax relief by EA, CPA, lawyer.
Understanding the Two Giants: Levies and Liens
Imagine a tax lien as a legal claim stamped on your property, like a scarlet letter declaring, “Tax debt owed!” It doesn’t seize your possessions, but it alerts creditors and hinders future transactions like selling your home. Think of it as a warning shot.
Now, a tax levy is the real heavy hitter. It’s the IRS or state agency’s power to seize your assets – wages, bank accounts, even your car – to directly satisfy the tax debt. It’s the financial equivalent of an army confiscating your resources.
Both can severely damage your credit score, limiting your access to loans and making daily life financially stressful.
What Triggers These Tax Titans?
Levies and liens aren’t random attacks. They’re the consequences of unpaid tax debts that remain unresolved after repeated notices and attempts to collect.
Common triggers include:
Unfiled tax returns
Unpaid tax bills
Failure to comply with payment plans
Delinquent payroll taxes for businesses
Ignoring the problem won’t make it disappear. In fact, it empowers the authorities to escalate their collection tactics, eventually leading to levies and liens.
Breaking Free from the Chains: Seeking Professional Tax Relief by EA, CPA, lawyer
So, what can you do if you’re facing levies or liens? Don’t panic! This is where professional tax relief services by EA, CPA, lawyer come in as your knight in shining armor.
These specialized firms boast experienced tax professionals equipped with the knowledge and tools to navigate the complex world of tax regulations and negotiate with the IRS and state agencies on your behalf.
Here’s how they can help:
1. Assessing the Damage: Tax relief experts meticulously analyze your tax situation, pinpointing the root cause of the problem and identifying all applicable levies and liens.
2. Crafting a Strategic Plan: Based on your unique circumstances, they develop a customized roadmap to resolve your tax debts, prioritizing actions and considering options like:
Offer in Compromise: Negotiate a reduced settlement amount with the IRS or state agency.
Installment Agreement: Establish a manageable payment plan to gradually settle your debt.
Penalty Abatement: Seek to have penalties and interest charges reduced or removed due to reasonable cause.
Innocent Spouse Relief: Protect yourself from being held liable for your spouse’s tax debts under specific circumstances.
3. Handling the Heavy Lifting: Tax professionals, EA, CPA, lawyer, take over the communication burden, dealing directly with the IRS and state agencies on your behalf. They prepare and submit necessary forms, ensuring accuracy and compliance.
4. Advocacy and Support: Throughout the process, they serve as your advocate, explaining complex legalese and providing emotional support during a stressful time.
5. Future-Proofing your Finances: Beyond immediate resolution, professionals offer guidance to prevent future tax problems. They may recommend proactive tax planning and filing strategies to keep you on the right track.
The Power of Seeking Help: Beyond Tax Resolution
The benefits of professional tax relief extend far beyond simply resolving your current tax issues. Consider these positive impacts:
Reduced Stress and Anxiety: You no longer bear the burden of dealing with the IRS and state agencies alone, allowing you to focus on your well-being.
Improved Credit Score: Resolving outstanding tax debts can significantly improve your credit score, opening doors to better loan opportunities and lower interest rates.
Financial Stability: A structured payment plan and future-proofed tax strategy provide peace of mind and pave the way for financial security.
Saved Time and Energy: Skilled tax relief professionals handle the intricate details, freeing up your time and energy for other priorities.
Investing in Your Future: Choosing the Right Tax Relief Service
While seeking professional tax relief by EA, CPA, lawyer, is a wise decision, choosing the right provider is crucial. Be wary of scams and prioritize reputable firms with proven track records. Look for:
Experience and Qualifications: Check for experienced, licensed tax professionals such as EA, CPA, lawyer, and a strong understanding of state and federal tax laws.
Transparency and Communication: Ensure clear communication, upfront pricing, and no hidden fees.
Positive Client Reviews: Seek independent reviews and testimonials from satisfied clients.
Flexible Payment Options: Opt for tax or law firms offering flexible payment plans to fit your budget.
Get professional representation help today 1-877-78-TAXES [1-877-788-297].
