A tax levy, under United States Federal law, is an administrative action by the IRS under statutory authority, without going to court, to seize property to satisfy a tax liability. A levy is generally used to take money out of your bank account. Once your debt to the IRS becomes final and payable, the Service will attempt to mail four collection letters demanding payment. After sending those letters, whether or not you received them, the IRS can levy any U.S. bank account. This means they can take up to the amount of the debt out of your account(s). For example, if you owe $30,000, and you have $20,000 on the bank, they get $20,000. If you owe $30,000, and have $35,000, they get $30,000.
We can stop a wage or levy on your bank account and can get them released. Don’t allow an IRS wage levy damage your finances. Receive IRS help from the experienced staff here at La Rusa today.
Federal Tax Liens are public records that indicate you owe the IRS various taxes. They are filed with the County Clerk in the county from which you or your business operates. A tax lien is a lien imposed by the IRS upon real estate or other property to secure the payment of taxes. This doesn’t mean your property will be seized, it just means the taxing entity gets first right to your property over other creditors. If you sell the property, the proceeds from the sale go first to the IRS to settle your debt, and then the remainder comes to you. An IRS lien comes after any preexisting liens, such as a first or second mortgage. Avoiding a lien or a levy is simpler than you think. IRS suspends all collection activities if you enter into an installment agreement.
Bot federal and state taxing authorities can place a lien on your assets, either for unpaid property, income or other delinquent taxes. If you have been contacted by the IRS or your state’s Department of Taxation, or have received tax liens, levies or notices of IRS intention to do so, contact us for a free confidential initial tax consultation.