The IRS has tremendous power in collecting tax debts. If you owe federal taxes, you may be subject to an IRS levy or an IRS wage garnishment.
The IRS can garnish your paycheck in the amount of 75% of your net pay and can seize your property. They not only can freeze your bank accounts but they can seize all the money in your bank accounts too. There is no special permission needed to freeze your account. If you owe money, the IRS can take it. You will immediately lose access to your account – unable to withdraw money, write checks, or make payments on your mortgage, car, or other loans.
Good news though. Our tax attorneys can help you get relief immediately.
What is an IRS levy?
An IRS levy permits the seizure of your property to satisfy a tax debt. An IRS levy can take on many forms. The IRS can garnish wages, take money in your bank or other financial account, seize and sell your vehicle, real estate and other personal property.
The good news is that the IRS can’t normally issue an IRS levy without notice. Normally, before an IRS levy is issued, the IRS must assess a tax and demand payment. If you don’t pay, the IRS can issue a “Final Notice of Intent to Levy” which provides 30 days to request a hearing. If you do not pay and do not request a hearing, the IRS will issue the IRS levy.
Here is a sample of the Final Notice of Intent to Levy:
What is IRS Letter 1058?
An IRS Letter 1058 is a Final Notice of Intent to Levy. This letter provides 30 days to request a hearing. If you do not pay and do not request a hearing, the IRS will issue the IRS levy.
What is IRS LT11?
An IRS LT11 is similar to an IRS Letter 1058 and is a Final Notice of Intent to Levy. Like IRS Letter 1058, the LT11 provides 30 days to request a hearing. If you do not pay and do not request a hearing, the IRS will issue the IRS levy.
What’s the difference between an IRS lien and an IRS levy?
An IRS levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against your property to secure payment of your tax debt, while a levy actually takes the property to satisfy the tax debt.
While an IRS levy tends to be a more immediate problem, an IRS lien, otherwise known as a Federal Tax Lien, has a totally different set if issues. If you need to resolve a Federal Tax Lien, we discuss that here.
What is an IRS wage garnishment?
An IRS wage garnishment is essential a levy of your wages. A wage garnishment follows the same procedure as the IRS levy, but instead of taking your bank account, the IRS takes your wages. Surprisingly, the IRS can garnish your paycheck in the amount of 75% of your net pay!
More good news though, we can stop an IRS wage garnishment in the same manner that we can stop an IRS levy.
How can I avoid an IRS levy?
As you can imagine, the best pay to stop a levy is to prevent one in the first place! If you have unpaid taxes, you should consult with us immediately so that you can avoid a levy entirely! There are a number of ways you can avoid a levy.
If you are actively working to resolve your tax debt, the IRS will not (or cannot) levy. Many times, we can avoid an IRS levy by entering into an IRS installment agreement (IRS payment plan), by settling tax debt for less than owed using an Offer in Compromise, or by showing a financial hardship exists.
If the IRS already issued a Final Notice of Intent to Levy, we can avoid the levy by requesting a Collection Due Process Hearing. Sometimes, we can use a Collection Due Process Hearing to give us time to propose an installment agreement or Offer in Compromise.
How can I stop an IRS levy?
To stop an IRS levy, you need to obtain a “levy release”. If the IRS has frozen your bank account or garnished your wages before you speak with us, you may need a levy release. We can help with that.
There are a number of ways you may qualify for a levy release. The IRS is required to release a levy if you meet any one of the following:
- You paid the amount you owe
- Releasing the levy will help you pay your taxes,
- You enter into an Installment Agreement and the terms of the agreement don’t allow for the levy to continue,
- The levy creates an economic hardship, meaning the IRS has determined the levy prevents you from meeting basic, reasonable living expenses, or
- The value of the property is more than the amount owed and releasing the levy will not hinder the ability of the IRS to collect the amount owed.
Our tax attorneys can give you immediate relief from your tax problems
When you hire a tax attorney, the IRS is no longer permitted to speak with you. They are required by law to communicate directly with your attorney. No more calls. No more letters. Just relief. We have experience helping taxpayers like you eliminate hundreds of thousands of dollars in tax debt.
Our tax attorneys can stop an IRS levy immediately
Better yet, in many cases, we can get a “collection hold” on your account the same day you hire us. If we show the IRS that you are serious about resolving your debt, we can stop the levy.
Our tax attorneys can stop an IRS wage garnishment immediately
Because an IRS wage garnishment generally follows the same rule as an IRS levy, we can get a “collection hold” on your account the same day you hire us. If we show the IRS that you are serious about resolving your debt, we can stop the wage garnishment.
Contact us for a free consultation with a tax attorney and stop an IRS levy or IRS wage garnishment today
Take back control of your financial future. Providing both immediate relief and long-term solutions, tax resolution could be the answer you have been looking for. Our attorneys strive to make this process as easy as possible by offering flexible payment options and financing.
Contact our law office today to schedule a free consultation! Call or reach out to your closest office:
- Stroudsburg Pennsylvania tax lawyer
- Palmerton Pennsylvania tax lawyer
- Bethlehem Pennsylvania tax lawyer
- Elkton Maryland tax lawyer
- Baltimore Maryland tax lawyer
- Morristown New Jersey tax lawyer
- Brooklyn New York tax lawyer
The best part is that we can start the whole process over the phone or by video conference so you don’t even need to come into the office! We make everything as easy as possible for you from start to finish. Call us today.