LIENS, GARNISHES & LEVIES
Don’t wait until it’s too late.
Liens, Garnishes & Seizures
The IRS has ways to satisfy unpaid taxes, namely garnish your wages, place a tax lien against your property, levy your assets, and, ultimately seize everything you own. The process starts past the date your taxes are due unless you have taken action toward a payment plan. Ignoring the IRS letters (final notices especially) is bad news and we strongly suggest you contact IRS Solver so we can help you remedy the situation.
A federal tax lien is a legal claim to the property you own at the time it occurs and property you acquire within 10 years (real estate, personal property and financial assets).
An levy allows the IRS to seize property on which there is a federal lien as a mean to collect taxes owed. You will then receive a Final Notice of Intent to Levy.
The IRS may seize and sell your property and apply the proceeds to the debt.
We can help you protect your assets.
A federal tax lien will go on your credit record, affecting your ability to apply for loans and lines of credit. It also attaches to business property, including accounts receivable. Even if you file for bankruptcy, the IRS lien may not be released.
First, the IRS send a notice and demand for payment, followed by a Notice of Federal Tax Lien if you fail or refuse to pay.
The ideal way to get rid of a lien within 30 days is to pay your tax debt in full. However, other options are available, such as:
- Discharge of property: removing the lien from a specific property.
- Subordination: moving the IRS behind other creditors and making it easier to apply for a loan.
- Withdrawal: you may be eligible for the removal of the Public Notice of Federal Tax Lien.
The IRS uses levies to garnish your wages, seize your checking accounts, savings accounts, stocks and any other assets you own. Levies are typically a last resort. If the IRS has tried to communicate with you about paying your back taxes and you have ignored their requests, they may have no choice but to take the money you owe out of your accounts. It’s possible to stop a banky levy, but you must act quickly.
If you can prove a levy causes immediate economic hardship, the IRS may release it.
You can appeal (before or after the levy).
Time is of the essence once the IRS has issued a levy, so if you want to protect your assets, you must move quickly.
The IRS takes possession of what you own and sells to the highest bidder (at fair market value). Some assets are exempt, such as clothing, worker’s compensation, child support, part of unemployment benefits.
If you can prove a seizure causes immediate economic hardship, the IRS may release it.
You can appeal (before or after the seizure), or appeal if your request for release has been denied.