Taxpayers who have received a notice or a letter from the IRS informing them of an impending collection activity against their paycheck or bank account. Many taxpayers wonder how the legal action to collect the tax got this far, what the notice means, and if there is anything they can do about the impending tax levy or garnishment. An IRS action against you is extremely serious. Unless you act quickly, you may face a decreased number of legal options to halt the collection activity against you.
If you are concerned about an IRS garnishment against you, contact the aggressive and strategic tax attorneys of the NewPoint Law Group today. Our legal team can inform you of your potential legal options and fight to protect your property and assets from the IRS. To schedule a no-obligation, confidential consultation call 1-800-358-0305 today.
How Do I’m Facing Property Seizure Due to Unpaid Taxes?
The IRS must provide adequate notification to a taxpayer before it takes enforcement action against him or her. Notices the taxpayer may receive includes IRS Notice CP90 – Final Notice of Intent to Levy and Notice of Your Right to A Hearing, Letter 3172 – Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320, and IRS Notice CP504 – Notice of intent to seize (“levy”) your state tax refund or other property. Receiving these notices or any similar notification signals that your tax problems have reached an especially dangerous juncture where a continued failure to take action will result in the loss of property through an IRS levy or garnishment.
What Is the Difference Between an IRS Levy and Garnishment?
Many taxpayers are confused by what the IRS means by a levy and a garnishment and furthermore how each legal process differs from the other. A levy is the legal process by which the IRS or another creditor can seize property or assess you already own. Therefore, tax levies are carried out against personal property or, more commonly, your bank account. A levy is a one-time event and does not reoccur.
On the other hand, a garnishment typically applies to property that will be, but is not yet under your possession. A garnishment is typically directed against your salary or wages at the employer level. Therefore, a garnishment essentially captures funds before you receive them.
Facing the prospect of either a wage garnishment or a levy on your bank account or other property is an upsetting and anxiety-inducing experience for any taxpayer. However, you may have options to stop or address the levy or garnishment before it occurs.
How Can I stop a Tax Garnishment or Levy?
The taxpayer often has a number of options that he or she can use to stop a wage garnishment or bank levy. Consulting with a tax lawyer can provide a full-range of options available to the taxpayer. However, some potential means to stop a tax levy or wage garnishment include:
- Engage in Collections Due Process – Depending on the type of appeal you wish to bring, an appeal through CDP may be appropriate. However, a taxpayer must be sure that his or her request meet certain legal requirements.
- Use the Collections Appeal Program – CAP typically expedites a claim in comparison to CDP, but a condition of entry into this program is the forfeiture of certain appeal rights. Therefore, a taxpayer should first consult with a tax lawyer before entering into this form of appeal.
- Offer in compromise – Depending on the collection potential for your matter, the IRS may agree to settle the debt. OICs are fairly rare and must meet certain legal criteria to receive consideration.
- Installment or payment plan – the IRS also offers options for a taxpayer to voluntarily enter into payment plans. Depending on the amount of the tax debt, the taxpayer may be eligible to enter into an online payment plan. Business taxpayers are also typically eligible for payment plans.
The above represents some of the options a taxpayer has to stop an IRS collections enforcement action. These are not a panacea for your tax debt, but they can provide a first step towards getting your unpaid taxes under control and reducing the anxiety they can cause.
Work with Roseville Tax Lawyers when Facing a Tax Garnishment or Levy
The strategic and aggressive tax attorneys of the NewPoint Law Group can fight to protect your bank account and wages from an IRS collection action. To schedule a no-obligation, confidential consultation with a member of our tax law team call 1-800-358-0305 today.