Garnishments & Levies
Stop IRS Levy and Wage GarnishmentThe IRS disposes of certain tools to enforce the collection in order to satisfy a tax debt. This collection in most cases causes financial distress to the involved taxpayer, especially when it comes with little prior warning. One of these tools IRS uses is levy or wage garnishment. Levies are typically applied to bank accounts, securities, and/or real estate, and will effectively deny the taxpayer access to whatever property has been levied. If an operating business is involved, the IRS can (and will) post a claim on any Accounts Receivables, depriving the corporation from cash flow which makes it even harder to pay back the debt that led to the Levy! The levy can be released and the property returned to the control of the taxpayer only when the taxpayer enters into an agreement to repay the tax debt, or if the taxpayer can prove that the levy is creating a financial hardship. A Wage Garnishment is a specific Levy IRS uses to secure the tax amount owed by taxpayer. When the employer is contacted by IRS to withhold a portion of the Taxpayer’s salary, the employer CANNOT refuse to do so. When a Notice of Intent to Levy is received, the taxpayer has to act quickly. IRS is very insistent when collecting a tax debt, and lifting a levy or stopping Wage Garnishment nearly always requires expert assistance. If you received a notice to levy, contact us, our team has sixteen years experience of dealing with the IRS in similar situation as yours. Stop IRS tax lien collections Liens are a common method used by the IRS to collect tax debts. This method might not be as devastating as the levy but it still ruins the taxpayer’s financial plans. Usually taxpayer receives a Notice of Federal Tax Lien which means that the IRS has become aware of his debt and taxpayer has to pay up. The lien is a way the IRS notify the taxpayer’s creditors that it has a secured interest in the taxpayer’s assets and that has to be first satisfied before any transfer or sale. Tax Lien will prevent a taxpayer from being able to sell their house because this Lien gives the IRS a superior claim to it, up to the full value of the Tax Lien. A Tax Lien will usually prevent a person from obtaining a loan or credit card because of the instant damage it does to their credit rating. Technically, the only way to remove the IRS lien is when the tax debt has been repaid in full. But if the taxpayer cannot afford to repay the debt at once, taxpayer can submit a Compromise IRS offer to reduce the debt amount, or set up a Payment Plan. However, the lien still applies until the debt is repaid in full. If you received a notice of levy or a notice of a tax lien, it is your best time to contact Tax Planner CPA to begin a Compromise IRS offer, and relieve yourself from the stress that this situation might cause you. |
