A tax levy is a prominent tool that the federal government possesses to enforce tax compliance. In the simplest terms, this is a seizure of property to pay an individual or business tax debt, and would usually involve freezing a bank account or garnishing wages. Pontius Tax Law assists taxpayers with various IRS controversies like a tax levy or a tax lien. Call us and learn more about the benefits of working with a DC tax levy lawyer while you still have time to resolve the issue.
What to Do After Receiving Notice of a Levy
Once someone has received a notice of tax levy from the IRS, the most important step is for the taxpayer or their representative to contact the IRS for a compliance check using a Form 2848, IRS Power of Attorney, on behalf of their client. This check will review the balances due and the collection statute of limitation expiration date and confirm whether all the tax returns have been filed. They will pull IRS transcripts to get confirmation of balances due and a Power of Attorney copy of future IRS notifications mailed to the taxpayer.
The taxpayer should also review their ability to repay the IRS based upon their completed Form 433, Collection Information Statement, and review possible collection alternatives, such as an installment agreement, Offer in Compromise, and Currently Not Collectible status.
Important Reasons to Contact a Lawyer
If someone is facing a tax levy in DC, they would want to contact a lawyer if the amount due is significant enough that they are not currently able to pay. If the IRS were to come and seize those funds, that seizure or levy could cause immediate financial hardship, leading to difficulty paying for groceries, utilities, and mortgage payments.
It is important to contact an attorney as soon as possible when faced with a tax levy notification to avoid having wages garnished, and bank accounts frozen or levied. They could also help avoid immediate financial hardship from aggressive IRS collection tactics.
Tax attorneys are experienced with navigating the complex and ever-changing tax code and procedures of the IRS, which is something a taxpayer cannot get from general counsel services. Legal counsel should also be responsive to both the IRS and the client as they attempt to resolve this dispute as soon as possible.
Do Not Put Off Addressing the Issue
One of the most common mistakes an individual makes when faced with tax levy is they do not take the IRS seriously enough and are slow to respond to a notice of intent to levy. They might think the IRS is bluffing because they have sent multiple letters over several months and nothing has happened yet. This is because the government allows some leeway for taxpayers to make good on the situation. However, at some point, the IRS could levy their bank accounts or garnish their wages. This could be avoided if the taxpayer is more proactive and communicates with the IRS to resolve the underlying tax debt without the need for drastic action.
Learn More About the Benefits of Hiring a Tax Levy Attorney
You are not required to pay your entire tax debt in one lump sum. There are various options you can utilize to pay it off in a reasonable way. Work with our legal team to discuss which option works best for you.
Call us at your earliest convenience and experience the benefits of working with a DC tax levy lawyer today.