Get IRS Lines Released and Stop Bank Levies or Seizure
As a measure of collection back taxes, the IRS can file a Federal Tax Lien. A Federal Tax Lien marks the IRS’ priority on your real and personal property against all other creditors and gives them the right to seize and sell such property subject to prior encumbrances. Prior to such seizure, the IRS must make an assessment and make demand for payment. If you don’t pay within the time specified in the first notice, they have the right to begin enforcement proceedings.
The IRS will release a Federal Tax Lien when it is fully satisfied (paid). A Federal Tax Lien can also be withdrawn if one of the following applies:
1. It was filed too soon or not in accordance with IRS regulations
2. It speeds up the actual collection process, or
3. It is determined that it is in the best interest of the taxpayer and the IRS
The IRS must notify a taxpayer that a Federal Tax Lien has been filed within five days after the lien is filed. A taxpayer can also appeal the filing of a Federal Tax Lien. Some of the issues an appeal can be based upon include but are not limited to the following:
1. The tax debt owed was paid prior to the Federal Tax Lien being filed
2. The tax was assessed and the Federal Tax Lien filed while the taxpayer was in bankruptcy
3. A procedural error was made during the assessment
4. The statute of limitations on the debt had expired before the Federal Tax Lien was filed, or
5. The taxpayer was not given an opportunity to dispute the liability
6. When an IRS levy, such as a bank levy, is issued, the bank is legally obligated to immediately freeze any and all of your accounts. The bank must then hold those funds for 21 days, giving you time to resolve the debt. If you have not resolved the debt in those 21 days, the bank must send those funds to the IRS.
7. In some cases, the IRS reserves the right to legally seize and sell your personal property. The IRS can take and sell any property, such as a boat, car or even a house.
Wage Garnishment Assistance
The IRS can notify your employer that you have a back tax debt. If your employer receives garnishment notice, it is then required, by law, to send a significant portion of each of your paychecks directly to the IRS to offset the debt.
The dollar amount sent to the IRS for your wage garnishment depends on your filing status, the number of exemptions you claim and how often you get paid. At Creative Tax Solutions, we never advise any taxpayer to take on the IRS on your own. If you do nothing, the IRS will continue to garnish your paycheck until your debt is paid in full.
Our tax specialists can attempt to negotiate the full or partial release of the wage garnishment if you qualify for relief. Depending upon your individual circumstances, we may be able to arrange an Installment Agreement to pay the IRS a specified dollar amount every month until the debt is paid. Once the Installment Agreement is in place, we may be able to negotiate an Offer in Compromise and settle your debt for less than the actual liability, depending on your individual financial circumstances. Another option is to be placed in a Currently Not Collectible status, in which you may not have to make payments to the IRS at all, again depending on your individual financial circumstances.