Garnishments & Tax Liens

IRS GARNISHMENTS

WHAT IS A LEVY

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

WHEN DOES IRS TYPICALLY PLACE A LEVY AGAINST A TAXPAYER

  • IRS WILL TYPICALLY ISSUE A LEVY IF ALL THE FOLLOWING HAVE OCCURRED:
  • You Were sent a  Notice and Demand for Payment;
  • You neglected or refused to pay the tax; and
  • You received a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
  • HOW DOES IRS SATISFY A LEVY

If you do not pay your taxes (or make payment arrangements to settle your debt), then the IRS may seize and sell any type of real or personal property that you own or have an interest in. For example, they could seize and sell property that you hold (such as your car, boat, or house), or they could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, refunds, the cash loan value of your life insurance, or commissions).

IS IT POSSIBLE TO HAVE A LEVY LIFTED

Yes, If one of the following occur:

  • You file for bankruptcy ;
    You enter into and IRS accepts a payment plan schedule (they may only partially lift the levy at this point);
  • You submit an offer and compromise;
  • The time expires for legally collecting the tax (ten years after the date of assessment); or
  • The debt is satisfied (paid in full).

WHAT SHOULD I DO IF I AM ABOUT TO BE OR I AM BEING GARNISHED

You can try and handle the matter by yourself, but that can be time consuming and confusing. It is always a good idea to consult with a tax professional with your ongoing tax issues to see which option works best for you.

Maxwell Law Firm, represents clients all over the United States on IRS and New York Tax related issues: Wage Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, filing for bankruptcy, Installment Agreements, and Income Tax Services. We are Licensed in New York and North Carolina. You can schedule your by contacting us online or calling 718-701-0095. TELEPHONE CONSULTATIONS ARE AVAILABLE IF YOU ARE NOT ABLE TO COME TO EITHER OF OUR OFFICES.