Unpaid taxes are a source of anxiety for many people, particularly when the Internal Revenue Service initiates formal action. It’s important to understand the tax codes, which is why the advice of an professional tax attorney like Bill Bronson at The Bronson Law Firm PC is so important. This Plano, TX, firm will help you understand the difference between tax liens and levies, as well as devise a comprehensive legal strategy to mitigate the effects of unpaid taxes.
They offer insight into tax liens and levies:
What Are Tax Liens & Levies?
The IRS will issue a tax lien against your property when you fail to pay a tax debt. A lien will not take your property but is a collection procedure that establishes the right of the IRS to claim tax payment from your assets. For instance, a lien against your home means the IRS can claim the equity if you sell it. A lien can apply to property or accounts receivable from your business. You will receive a notice of delinquent taxes and have up to ten days to pay back the amount owed in full. The lien will be released once the debt is paid.
A tax levy is used to seize bank accounts or garnish wages to recoup unpaid taxes. Other financial accounts also can be subject to a levy, including bonds, stocks, and retirement accounts. Levies usually are issued after a long period of inactivity for an unpaid tax burden.
Can Liens & Levies Be Appealed?
You have a right to a hearing if a lien is issued against you, and you can negotiate a payment schedule if you are unable to pay your tax debt in full. If the IRS failed to follow proper procedure or there were extenuating circumstances such as bankruptcy, the lien may be withdrawn. When appealing a lien, it’s important to act within 30 days of receiving the final notice issued by the IRS.
You also can appeal a levy but must do by certain deadlines. In some cases you may make other arrangements for payment, or you can attempt to show the IRS did not follow accepted procedure when issuing the levy. Upon appeal, the levy may be halted and you’ll be afforded time to resolve your case.
Take advantage of nearly three decades of experience in the tax field by contacting Bill Bronson at The Bronson Law Firm PC. Call (972) 770-2660 to schedule an initial consultation.