It is often said that the only certainties in life are death and taxes. An individual’s tax obligation will undoubtedly come due each and every year. The tax obligation includes both an obligation to file taxes and an obligation to pay taxes. Most people, dutifully, will file their taxes prior to the deadline. Most people will also pay the tax by the deadline because of the large fines and penalties that can be imposed due to a failure to file or a failure to pay. These penalties and tax obligations are then further inflated by interest. In any case, the failure to satisfy tax obligations is a situation no person wants to find themselves facing. But what happens when a taxpayer fails to address the tax obligation even after receiving notice that the tax has gone unpaid? Will the debt simply go away by burying one’s head in the sand? Unfortunately not. The tax debt will not disappear or evaporate and the IRS or FTB will engage in additional steps to collect on the debt. If you have been contacted by IRS or FTB regarding a tax debt, the experienced tax lawyers of the NewPoint Law Group may be able to appeal the determination. If you are already in collections, we may be able to negotiate the debt down on your behalf. To schedule a confidential tax debt or tax collections consultation call us at 1-800-358-0305 or contact us online.
What Is IRS or FTB Collections? Can They Garnish My Wages?
As you are probably already aware, the Internal revenue Service (IRS) administers and enforces the federal income tax obligation. The California Franchise Tax Board serves a similar role but for California state income tax. When a taxpayer fails to pay a tax debt, he or she may proceed to collections. IRS or FTB collections can take additional steps to secure payment for the tax debt. This can include a tax lien, a levy or a garnishment. In short, these methods of collection are:
- Tax lien – A tax lien is a claim that is filed by the collecting agency against the individual’s property. It does not necessarily mean that they are going to take the property. Rather, it is a means of improving their position as a creditor. For instance, a federal tax lien will attach to and encumber all property include property that is acquired after the lien. A tax lien may make it more difficult to get loans or secure credit.
- Tax levy – Unlike a tax lien, a levy is when the IRS actually takes your property. The levy is the formal legal process by which the IORS or FTB can seize your home or other property. If you are facing a lien, you should contact an attorney immediately. A tax levy is a one-time event.
- Tax garnishment – A tax garnishment is the process by which the IRS or FTB will seize certain parts of your wages to pay back a tax bill. The garnishment is served on the taxpayer’s employer and is an open-ended seizure of your wages.
The above represents the most common collections actions taken by the IRS and FTB. If you are facing the possibility of any of these, you should immediately contact an experienced tax lawyer to discuss your options.
How can I Stop a Levy or Tax Garnishment?
At the federal level, one option to stop an IRS wage garnishment or levy is to appeal the tax debt. Depending on how much time has elapsed, certain options may have been extinguished. One option the taxpayer may have is to engage in is Collections Due Process (CDP) where procedural issues regarding the tax obligation can be discussed. Therefore, individuals are encouraged to contact an attorney immediately upon receipt of an IRS or FTB notice of garnishment or levy. An additional option the taxpayer may have is to engage in negotiations to start a payment plan with the IRS or FTB. In any case, a thorough review of the taxpayer’s compliance is necessary before any action is taken. Ensuring compliance is often the first step to fixing IRS and FTB collections concerns.
Sacramento Tax Lawyers Can Fight to Stop IRS and FTB Garnishments and Levies
If you are facing a tax levy or wage garnishment, the experienced attorneys of the NewPoint Law Group can fight for you. To scheduled a free IRS or FTB collections consultation call us at 1-800-358-0305 or contact us online.