The IRS Will Stop at Nothing to Collect a Debt
If you owe a significant sum to the IRS, they will take measures to collect that debt.
These include levies and liens–two of their most severe punishments short of incarceration.
There’s a lot that the average person–and even small business–doesn’t understand about levies and liens.
And when you’re threatened with one, make no mistake–you have a legal problem.
You need an experienced Dallas Tax attorney with extensive experience fighting levies and liens.
You need Scott Scammahorn.
Everything You Need to Know about Federal Tax Liens & Levies
A lot of people don’t understand what a levy or lien is. Most make the mistake of thinking that they’re the same thing and, while they’re related, they aren’t precisely the same.
Both are steps the IRS takes towards collecting a debt, but a tax lien is an earlier step than a levy.
When the IRS puts a lien on your property–including your bank account–they are asserting their right to use that property to pay your debt.
A levy is when they actually seize that property, be it your paycheck or home.
If the IRS decides to put a lien on your property, you’ll likely be notified by mail. After receiving that notification, you need to act quickly.
If you received notice of a lien or–worse–a levy, don’t hesitate. Contact the Dallas law offices of Scott Scammahorn today.
The IRS Can Issue a Lien or a Levy On all of Your Property
When it comes to issuing a lien or a levy, the IRS has a lot of options. Depending on your debt, they may elect to lien one or all of these.
Real Estate
By far the most common property the IRS seizes, your home or business is often a key part of your net worth. A lien on your home can prevent you from moving, selling, or buying another.
Bank Accounts
If you have money in accounts, the IRS can issue a lien on it. You’ll be unable to withdraw that money. When they levy your accounts, you’ll lose all of that money to pay the debt.
Retirement Accounts
The IRS can issue a lien and levy 401ks, IRAs, and even pensions, should you have one. This can make retirement difficult or impossible if they drain your savings.
Social Security Income
If you owe back taxes, the IRS is able to levy up to 15% of your social security income. Combined with raiding your retirement accounts, losing SSI can devastate retirees.
Cars & Other Property
The IRS can levy most property that isn’t personal or less than about $6 thousand dollars. Nothing is off limits when the IRS decides to get its money back by force.
Wages
If you don’t have the assets to pay back your IRS tax debt, they may issue a levy on your paycheck or business profits to ensure that the debt is satisfied.
Here’s How a Tax Attorney Provide Relief for Liens & Levies
The only way the IRS will release a lien or levy is by getting rid of the debt, either through payment, negotiation, or other means.
Offers in Compromise
By the most sought-after end of an IRS interaction, an Offer in Compromise (OIC) will allow you to pay less than the total debt to discharge all of it.
Audit Representation
If you have a lien on your property, you may also be undergoing an audit. Audits can discover more debt and create more of a burden without a tax attorney on your side.
CNC Status
Occasionally, the IRS will conduct a review of your finances and assets to determine you cannot pay the debt. They’ll convert your case to “Currently Not Collectible” (CNC).
Debt Reductions
When you have a tax debt, you likely missed deductions, credits, or payments that could lower your overall IRS debt. Scott will work with you to find any and all means to lower your liability.
Penalty Reductions
The IRS will levy your debt alongside the penalties you owe them. Sometimes, getting your penalties lowered can save you thousands of dollars.
Installment Agreements
The IRS will lift a levy or lien if debtors agree to an installment plan that automatically debits their account. These can be used to give you some breathing room.
A Track Record of Successful Tax Debt Interventions
As an experienced tax attorney with specialized education in tax law, Scott Scammahorn has managed to help hundreds of clients lower their burden and protect their assets.
Our firm’s results include
- A $1.3 million dollar liability reduced to nothing
- A $1.2 million debt reduced to $755
- A $920 thousand debt reduced to $1524
- And more
Schedule A Consultation at our Dallas or Tyler, TX, Offices
We accept clients around the nation. Schedule a consultation at our Dallas, TX or Tyler, TX, offices.
We also conduct consultations online.
