Like any creditor, the Internal Revenue Service (IRS) will take aggressive steps in an effort to collect what is owed. Among the tools that the IRS relies on during these collection efforts, tax levies are one of the options they use the most. If you are facing a tax levy, a dedicated tax lawyer might be able to help.

A tax levy can result in the seizure of your personal or business assets. This includes anything from personal property to bank accounts. A Washington DC IRS tax levy lawyer could help you fight back against these levies or even avoid them entirely.

The Difference Between Liens and Levies

It is not uncommon for liens and levies to be confused. Not only does the IRS make use of both of these options during its collection efforts, but the similar-sounding names frequently result in them getting mixed up by a taxpayer.

A tax lien attaches to property owned by the taxpayer. It puts other creditors on notice of the tax debt and prevents the taxpayer from selling the property without first addressing the tax bill.

Levies are different in that they involve seizing money or property that is owned by the taxpayer. A tax levy could attach to anything from real property to motor vehicles to retirement accounts. A Washington DC levy dispute lawyer could assist in bring about a resolution with the IRS.

Options for Stopping a Tax Levy

There are multiple situations where the IRS could release a tax levy. In some cases, they have no option but to release a levy within a short window of time. In other situations, the IRS could voluntarily agree to release a levy in an effort to negotiate with the taxpayer.

The most straightforward way to end a tax levy is by paying the full amount owed. When this happens, the IRS is required to release the levy. However, many people lack the assets to make this option viable.

The IRS will agree to release a levy under certain circumstances. First and foremost, these agreements are made when the IRS believes it will facilitate the taxpayer paying their tax bill sooner. For example, they could release a levy and allow the taxpayer to sell the item, then pay the tax debt using the sale proceeds.

The IRS will also frequently release a lien in favor of an installment agreement. An installment agreement is a written contract that requires the taxpayer to make regular payments until the debt is paid.

The Best Interest of the Taxpayer

In other cases, the IRS could release a levy because it is in the best interest of the taxpayer. This outcome can be difficult to obtain without the guidance of a local IRS tax levy attorney. The IRS has the ability to release a levy when it determines the value of the property is greater than the tax debt, and the release will not hinder the government’s collection efforts. Additionally, the IRS could agree to release a levy if it would prevent the taxpayer from meeting their basic needs.

Contact a Washington DC IRS Tax Levy Attorney Right Away

If you are facing a tax levy, it can worsen an already tough financial situation. The good news is that it could be possible to work with the IRS to remove the lien and provide a reasonable avenue to repay the debt. Let a Washington DC IRS tax levy lawyer guide you in your tax debt resolution efforts. Call now to get started.

Experience & Practice Areas

Mr. Pontius has extensive examination experience with federal and state audits, protests of proposed adjustments and audit reconsideration. He represents clients on tax liens and levies, collection due process hearings, offers in compromises and requests for penalty abatement. He has experience with employment tax issues such as worker classification and the trust fund recovery penalty. Prior to founding Pontius Tax Law, PLLC, Mr. Pontius practiced for five years at Maryland tax controversy law firms in Rockville, Annapolis, and Bethesda. Mr. Pontius has two years’ experience in the international corporate tax group at KPMG in Tysons Corner, Virginia where he researched and analyzed a wide range of complex tax matters in the areas of compliance, provision, planning, and restructuring. At the accounting firm, Mr. Pontius worked with a broad range of U.S. multi-national and foreign-owned clients doing business as corporations and partnerships in the communications, financial services, and defense contractor industries.