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The payment of taxes to the federal government is something that almost all businesses and individuals need to do. A failure to pay these taxes on time, and in the full amount, may result in the Internal Revenue Service (IRS) seeking a levy to satisfy the tax debt. This levy authorizes the IRS to seize property and take wages directly out of a paycheck in an attempt to make up for missed payments.
Fortunately, taxpayers in Rockville do not need to accept this seizure without fighting back. Even making an immediate partial payment on overdue taxes could help prevent a levy. It might also be possible to obtain a release on the levy if it is causing immediate economic hardship.
A Rockville IRS tax levy lawyer could help businesses and individuals who have received notice of a pending tax levy. A skilled tax lawyer could investigate the facts of the case, identify possible solutions, and take the necessary steps to make those solutions a reality.
A levy is usually the result of an apparent failure to pay taxes. Most individuals and business in Rockville, and around the country, must pay these taxes at least once every year. If the IRS believes that someone has not paid their taxes, they may pursue an administrative remedy known as a levy.
According to 26 United States Code § 6331, the IRS can directly seize property and sell it to raise funds for the purpose of covering this tax bill. However, this process does not happen instantly. The same statute requires the IRS to provide the subject of the order with written notice of the intent to pursue a levy. The notice of this proposed levy must be in the subject’s hands no less than 30 days prior to the seizure. As a result, taxpayers who are the subject of levies have an opportunity to respond. A Rockville IRS tax levy attorney could provide more information about the power of the IRS to seize property through levies.
In order to receive the appropriate amount of taxes, the IRS can place a levy on any property that a person or business holds. However, all taxpayers have the right to due process in these proceedings. This includes the right to contest the legality of the levy.
A proper first step may be to evaluate whether the IRS is pursuing a legal payment. Some taxpayers have no obligation to pay taxes or might believe that they have already submitted sufficient payment. In these situations, a Rockville levy resolution lawyer could help produce evidence that challenges a claim for nonpayment of taxes, potentially resulting in an Offer in Compromise.
In other cases, a more nuanced approach may be appropriate. It may be possible to obtain a release on the levy. This typically occurs when a taxpayer agrees to make an immediate partial payment, as well as structured payments in the future using an Installment Agreement.
Finally, no levy can remain in effect if its execution would result in economic hardship. The IRS’s power to take property and wages ends if that seizure would prevent someone from meeting a basic and reasonable standard of living. For example, if the seizure of a family home would result in homelessness, it may be possible to ask for a release. A tax lawyer could help to put an end to burdensome levies by making sure a qualifying taxpayer meets the Currently Not Collectable (CNC) status.
The federal government has broad powers through the IRS to collect taxes. If a person or business fails to provide adequate payment, federal law empowers the IRS to implement levies to make up for these missing payments.
If you received a notice of a levy, you have only 30 days to make the proper payment or contact the IRS in an attempt to settle the dispute. It is in settling these disputes that a Rockville IRS tax levy lawyer could help. An attorney could take the lead in arguing that the tax itself was inappropriate or moving for a release based on economic hardship. Contact Pontius Tax Law today.
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, Fairfax, 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.
