Levies Liens and Seizures

When a tax collector takes possession of your assets a tax levy will occur. If you have a bank account or earnings that are in what you would considered to be a safe place from the IRS think again.

A bank can be ordered to allow the Internal Revenue Service to take what you owe at any time or place to collect on that past due amount.

Because of this, tax debts are not something to play around with, tax debt problems will only get worse if not addressed. The IRS usually starts collections efforts in less drastic ways than a levy, often a lien will come first which is a strong signal they are very serious about collecting the money, and that a levy may be coming next. The federal government relies on taxes to keep our government and military operational and has a lot of power to collect on any debt they say you owe. Should you ignore the IRS efforts to contact you and make payment arrangements, they will continue to pursue the funds and a tax levy may be ordered. The IRS can seize assets that include investment accounts, retirement accounts even wages not yet earned. The IRS will have priority of getting paid even in a bankruptcy and will always get paid before any other creditors.

When a tax... ...read full post

When you fall behind on your IRS tax debt, do not just ignore it an hope it goes away. Sooner or later officers from the IRS are going to chased you down. After repeated attempts to collect a debt go un answered often IRS will send a notice of intent to levy. They do this when they feel it's the only way in which they can possibly get the money that is owed to them. This means that you could possibly find yourself in the situation where the IRS is taking out money from your bank account, or even worse your paychecks! This is known as an IRS tax levy, bank levy wage levy or wage garnishment, and it can be both very damaging for those who are having trouble paying their taxes and have disastrous financial consequences for removing the ability to pay other more pressing bills like the mortgage, rent or even child support.

It is possible to protect yourself against an IRS tax levy by using the resources that are available to you through a lawyer who specializes in tax law. This individual will have the experience that is necessary to help fight back against a levy that is put in place by the IRS.

It's essential to go to... ...read full post

An IRS levy is the Internal Revenue process of seizing property due to unpaid taxes. If a taxpayer has unpaid taxes, the IRS has the authority to seize property held by the debtor, including cash, jewelry, vehicles and valuables.

It has the authority to seize property owned by the debtor and held by a third party, such as bank accounts, wages and accounts receivable. It also has the authority to sell real estate owned by the debtor to pay the delinquent taxes. With a bank account levy, the IRS will take 100 percent of the balance in the account, up to the amount of the debt. On wages, the IRS may garnish over 50 percent, and is not subject to state law garnishment limitations. It is not unusual for the IRS to garnish as much as 70 percent.

Levy is often the last step in the collection process. Prior to that, the IRS will make an assessment of taxes and penalties owed. It will notify the taxpayer the amount of the assessment, which tax years are included and a breakdown of tax, interest and penalties, if any. It will send a Notice and Demand for Payment to the taxpayer and will provide time to pay the amount owed.

If the taxes remain unpaid, the IRS will then send the taxpayer a Final Notice of Intent to Levy and Notice of Your Right to A Hearing. At this... ...read full post

The IRS has the job of collecting all of the tax revenue that the federal government pulls in. Thus, it has a big job on its plate. There are many people who simply do not pay their taxes because they cannot afford to make the payments when they are due. Others simply feel as though they can get away with doing this. Whatever the case may be, if you do not pay for a long enough period of time you can receive IRS levies.

Levies are the government's way of making you pay them the money that you owe. Some people feel that this is unfair, but it is really the only way to get the money out of some people. As such, you could experience levies yourself if you have been resistant to paying the money you owe. If you find that you are receiving the levies there are some things that you can do though.

The first thing to do is hire legal representation. This is important because you need someone who has the training to get the job done right. In other words, you need to hire a tax lawyer so that you can navigate your way through the legal system. Remember, these tax lawyers are going to have more experience than the average person when it comes to dealing with tax issues. They know what needs to be done in the legal system, and they will help you get it done. If there is some reason why... ...read full post

An IRS tax lien is filed against your property from the Internal Revenue Service because of neglect on your part to pay your income tax debt. When you have an IRS tax lien on your property, your ability to obtain credit or transfer ownership of your home can be quite difficult. Until you pay your income tax debt in full, the interest and penalties will continue to climb. The good thing is that you will have numerous options for fighting back against a tax lien and eliminating it permanently.

One of the easiest ways to eliminate the lien is to pay the debt in full. If you have the money to pay the lien, that is always the best option for your situation. Once the payment has been received, the IRS will take the lien off your property. Not only will this improve your chances to get credit, but it will also provide you with the capability to sell your property or refinance it. After the debt is satisfied, you will receive a letter from the IRS stating the release from the lien.

If you are unable to afford paying the debt in full, you can always work out a payment agreement with the IRS. All it takes is a little time to contact the IRS and set up the arrangement over the phone with them. ... ...read full post

In 2006, Will Smith starred in a movie called "The Pursuit of Happiness" - a true story about Chris Gardner and his 5-year old son who end up homeless in San Francisco. Smith was nominated for an Academy Award and a Golden Globe Award for his part in this inspiring film, which tells with an unblinking eye the real-life story of a man's struggle with a string of back luck coupled with questionable decisions.

One of the most gripping moments in the film is when Gardner (played by Smith), after being evicted from his apartment, sells an expensive piece of medical equipment for which he and his former girlfriend had spent their life savings, in order to pay for the bill for the cheap hotel room he and his son were living in. His excitement, to be able to pay for the room now, turned to horror as he realized that the IRS has levied his bank account to satisfy a tax debt from the previous year.

As Smith's character scrambles to a pay phone to call the IRS, he exclaims incredulously "You Can't Do That!"

Those are words that I hope never enter your mind in dealing with the IRS. You can sense the utter disbelief in his voice that a government agency could actually "hijack" a person's bank account and take their money at will.

But that's exactly what the IRS has the power to do - legally.

The story spirals downward as Gardner and his son... ...read full post

The IRS has softened its approach on wage levies with some encouragement from the United States Tax Court. See Vinatieri. Bottom line is: If a levy would create an economic hardship by preventing a taxpayer from being able to meet living expenses, agents should back off, even if the taxpayer has unfiled tax returns. Agents have long maintained an attitude of being unwilling to withdraw levies due to economic hardship when the taxpayer’s returns have not been file.

The Office of Chief Counsel of the IRS issued a notice to to be distributed to “all personnel and electronic reading rooms. The instruction to agents was specific to when a collection due process hearing has been requested. Additionally, the administrative record must support by its facts that the taxpayer raised the issue of economic hardship and that the levy would prevent the taxpayer from meeting necessary living expenses. Unfortunately, agents, particularly Revenue Officers are likely to ignore the case without being pressed by having the rule of law brought to their attention.

So . . ., when an IRS agent will not back off when they have levied a taxpayer and the levy will cause hardship, file a request for a collection due process hearing (CDP). If the appeals officer does not agree to have the levy released, the Tax Court Judge should send the case... ...read full post