Taxpayers who owe a substantial amount of back taxes to the IRS may face a tax lien or a levy if they leave their debts unpaid.
The IRS has the legal authority to enforce these methods for collecting on outstanding debts and, once a lien or levy is placed on your bank account or other assets, getting rid of one can be quite difficult.
One of the best ways to resolving a tax lien or a levy is to avoid one in the first place. Here are a few other tips for resolving tax liens and levies.
1. Understand the Implications
If you receive a notice of an impending tax levy or tax lien from the IRS you'll need to take action quickly to try to settle your account.
Once you get the final notice in the mail you'll only have 30 days to either appeal your case or try to resolve it.
Should the IRS place a levy on your assets it may take you years to repair your financial situation.
2. Learn about the Consequences of a Tax Lien or Levy
The IRS uses tax liens and levies to place holds on certain types of assets but both methods serve the same purpose - collecting valuable property that can be liquidated to repay the tax bill.
A tax levy can be placed on just about any kind of property, including bank accounts, vehicles and bank accounts.
If your bank account is affected the IRS will get the first call on all funds that pass through the account including your wages.
On the other hand, a tax lien is used solely on personal or real property and signifies the IRS's intent to take primary ownership of the property.
When this happens you will be unable to sell the property until the lien is removed.
3. File an Appeal with the IRS
Once you've familiarized yourself with the possible effects of an IRS tax lien or an IRS tax levy you'll want to take steps to appeal the ruling. Since this process can be fairly complex it's best to hire the services of a trained income tax resolution specialist who can assist you to prepare a thorough case. It's particularly important that you do not speak to any IRS agents in person or on the phone since your statements may be used against you during the appeal.
Since this process can be fairly complex it's best to hire the services of a trained Enrolled agent that specializes in tax resolution swho can assist you to prepare a thorough case.
It's particularly important that you do not speak to any IRS agents in person or on the phone since your statements may be used against you during the appeal.
When you're facing an IRS tax levy or an IRS tax lien you'll want to get started resolving it right away. With these tips for resolving tax liens and levies you may be able to settle your tax debt with the IRS.
If you have received a notice of tax lien and/or levy. You may have less than 30 days to do something to protect yourself. You can get more information at (909) 654-4771 or book an appointment direct below: