If the Internal Revenue Service (IRS) placed a tax lien on your real estate or other assets due to unfiled taxes, a tax levy could be next. This occurs when the government exercises the claim it made to your property when it filed the lien. Under this levy, your wages may be garnished or your property seized.
When you receive the IRS notice that a levy is imminent, or if you have not acted since the placement of a lien, a dedicated tax lawyer has the skills and resources to address your concerns. In a sensitive situation like this, it is best to work with an Alexandria tax levy lawyer.
Well before the IRS seizes any assets, the delinquent taxpayer will receive an official notice indicating the amount owed. This is a good time to talk to an experienced tax levy lawyer in Alexandria who could explain the payment options and come up with a plan that will satisfy the IRS.
If the taxpayer does not arrange for payment, the IRS will send a Notice of Intent to Levy and inform them of their right to a hearing. The taxpayer will have 30 days to respond before the levy is executed. A tax levy attorney may assist the individual with requesting a hearing before the IRS Independent Office of Appeals in order to halt it. This hearing is usually done over the phone, between the lawyer and the IRS, and requires exchanging some financial information, as well as a Form 433.
The IRS can contact the taxpayer’s employer and require them to garnish a portion of wages every payday, which is then submitted to the government and applied to the tax bill. They can also compel the taxpayer’s bank to freeze accounts and potentially forward some of the funds to pay down the debt. A home and vehicle can also be confiscated, as well as commissions, dividends, and accounts receivable. Fortunately, there are some assets which are off-limits from being seized:
Even with these protections, the seizure of property and the garnishment of wages can put a taxpayer in a difficult situation, which is why they should contact a lawyer before it gets to this point.
Some options that resolve a lien can also stop a tax levy. Depending on how much the taxpayer owes, a repayment plan – via an Installment Agreement – may work best if they cannot pay all at once. They can also apply for an Offer in Compromise that allows them to pay less than is owed if it will settle the debt. The IRS will consider this only if a taxpayer has absolutely no way to satisfy the entire debt or if doing so would lead to undue financial hardship.
An Alexandria tax levy lawyer may be able to temporarily stop the seizure of assets if the taxpayer is not in a financial condition to pay. Their account would be assigned Currently Not Collectible status. The IRS may routinely review that person’s finances to determine their ability to pay and resume enforced collections if the financial situation improves to the point where payments are possible.
The IRS does not immediately impose a levy the moment you are delinquent on your tax returns but there are multiple notices that precede it. Even if you are not in the position to pay your debt right now, it is important that an Alexandria tax levy lawyer assesses your situation and offers a plan of action.
When your tax debt exceeds $50,000, it is worthwhile to speak with Pontius Tax Law. Reach out to us and explain your situation so we may begin to bring you back into tax compliance.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Vienna, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.