If you have not paid the full tax debt that you owe to the federal government, there remains a possibility that the Internal Revenue Service (IRS) will implement a tax levy. Fortunately, experienced tax lawyers have had success with resolving these levies, as well as the underlying issues that caused them.
If you find yourself in this kind of situation with the IRS, you could benefit from the guidance of a Vienna tax levy lawyer. Your legal counsel could evaluate your tax debt, advise you on your options moving forward, and help you resolve your levy so that you can remain in compliance.
A tax levy is one of the last collection options used by the IRS. A levy is the seizure of a taxpayer’s property in order to pay back their tax debt. The good news is that there are ways to resolve a tax levy with the help of a Vienna attorney.
Tax levies could apply to a variety of assets. This option is often used for assets that are not secured by banknotes or other liens. Some common assets that could be taken through a tax levy include:
Levies are not implemented without warning – there is a general process that each case will follow before the IRS initiates one. At the outset, the IRS will send a Notice and Demand for Payment to a taxpayer regarding their unpaid tax bill. If the taxpayer pays the debt or works to resolve the issue, it could prevent a levy. The IRS will typically use levies as a last resort.
Tax levies are often confused with tax liens, given that the names are similar and the IRS uses both tools in their collection efforts. However, these two collection tools are very different. A tax lien is a notice to creditors that prevents a taxpayer from selling or transferring certain property until a debt is paid. This is different from a levy, which involves the seizure of taxpayer property.
There are different options available for stopping IRS tax levies. The simplest way to do this is to pay the full balance owed to the IRS. This approach is not always an option, given that many taxpayers lack the resources to pay their full balance immediately. It is also possible that an error occurred when calculating the owed amount, and paying the levy prevents a taxpayer from disputing the amount that they owe. A tax levy lawyer in Vienna could advise a taxpayer on their options for dealing with a levy from the IRS, both in terms of paying the debt or disputing the amount in the first place.
There are other options available to resolve tax liens outside of payment in full. The IRS will often agree to a payment plan, particularly when the total tax debt is relatively low. In these cases, the IRS could stop the levy as long as the taxpayer continues to make timely payments.
Another option is known as an offer in compromise. With an offer in compromise, the IRS agrees to resolve a tax levy for less than the full amount of the debt. This option is common among taxpayers who are financially unable to pay the full amount.
There are many ways you could resolve your tax levy without having your bank account frozen or your paycheck seized. From offers in compromise to installment agreements, these tools could help you address your tax issues while avoiding the effects of a levy. Securing a favorable outcome could be possible with the help of a Vienna tax levy lawyer, so call right away to learn more.
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.