Dealing with the IRS can be very daunting and intimidating because of the serious consequences the Internal Revenue Service can impose on your finances if you default on your tax payments. If you owe the IRS taxes and you have not responded to IRS’s notices demanding payment of your tax debt, the IRS may impose a bank levy, wage levy, or file a tax lien against you.
But you shouldn’t let the IRS turn your financial life upside down in such a damaging way. Instead, you should hire a tax lien attorney who will help you negotiate an offer of compromise or have the imposed levies lifted by a court of law.
These are some of the situations where you’ll need the services of a tax lien attorney.
You’re Facing Wage Garnishment
Legally, the IRS has the power to impose a wage levy without a court order. In such a situation, the IRS directs your employer to hold part or all of your income to settle the debt you owe the IRS. In doing so, the IRS will take a certain percentage of your wages or your full salary until your tax debt, and accrued penalties are settled. However, before the IRS levies your wages, you’ll receive several notification letters known as the IRS Notice of Intent to Levy Wages.
Preferably, you should hire a tax attorney as soon as you receive your first wage levy notification letter. After the IRS sends you the Final Notice of Intent to Levy Wages, you’ll only have 30 days to stop the levy. Although it’s better to hire a tax lawyer sooner, the best tax attorneys will find ways to lift the wage levy or negotiate better repayment terms with the IRS.
You Receive an IRS Notice of Intent to Levy
As a last resort, the IRS may issue a bank levy against you. A bank levy freezes your bank accounts and deducts funds, which are then used to pay your outstanding tax debts plus the penalties and interests accrued. The IRS instructs your bank to seize funds equaling to your tax debt and channel it to the IRS.
Once you have been served with the intent to levy notice by the IRS, you have 21 days to obtain a release of the levy before it takes effect. The best bank levy lawyer will help you fight the bank levy and avoid the devastating consequences of losing your money to the IRS.
The IRS Files a Notice of Federal Tax Lien Against You
When you fail to file tax returns or pay the amount of taxes owed, the IRS can issue a tax lien against you. A tax lien means that the government has a legal claim to your personal property, financial assets, and real estate. This makes things very complicated for you because you may not be able to do business, access credit from lenders, file bankruptcy, or secure employment until your tax lien is released. You may also have to sell your property to settle your tax debts.
You should hire a tax lien attorney to explore the best ways to get your tax lien released. Your tax lien lawyer will help you negotiate a fairer Offer of Compromise, file a Collection Due Process Hearing to have the lien released if it was filed by mistake or through a discharge in Bankruptcy. Your tax lien attorney will also explore if you qualify for a tax lien withdrawal.
As your tax attorney will tell you, you must pay and file your personal and business taxes properly to avert problems with the IRS. The IRS can collect back taxes owed for up to ten years and audit any business tax return within three years of filing. When you find yourself in the IRS’s wrong books, a tax lien attorney will help you explore your options and avoid the punitive consequences imposed by the IRS.