Understanding IRS Liens and Levies
IRS Tax Lien: A Claim Against Your Property
Let’s start with the property you own. A Lien is a claim registered against property for not paying taxes.
- It does not take away a taxpayer’s property or the right to sell or transfer ownership of the property.
- However, when such property is sold, that lien will be collected.
IRS Tax Levy: A Seizure of Your Property
A Levy comes after a Lien has been filed.
- A Levy happens because the taxpayer fails to satisfy the Lien within a certain period of time.
- A Levy is a seizure; it takes your property and transfers ownership to the government.
How the IRS Executes a Tax Levy
Tax Levy Can Be Issued on Any of Your Assets
With a Levy, the IRS can:
- Seize your property
- Garnish your wages
- Freeze your bank account up to the amount of the levy for 21 days
Within the 21-day period following the levy:
- Funds may be returned upon the showing of dire financial hardship.
- However, this is highly unlikely, and most commonly, the funds are automatically given to the IRS.
Once the IRS has exhausted its ability to collect your tax debt from a bank levy, they will proceed to garnish your wages.
Consequences of IRS Seizure Actions
Once the IRS removes funds from your bank account, garnishes your wages, or seizes your home, car, or other valuable items, it is likely the case that you will never get these assets back.
However, moving forward, our law firm can put an end to wage garnishments and control your tax debt by protecting your assets.
IRS Tax Lien and Levy Attorney in Atlanta
If you are facing these issues, contact an experienced IRS Tax Lien Levy Attorney in Atlanta for professional help in protecting your rights and assets.
Frequently Asked Questions
What is the difference between an IRS tax lien and a tax levy?
A tax lien is a legal claim the IRS makes against your property due to unpaid taxes, it doesn’t take your property but ensures the IRS gets paid if the property is sold. A tax levy, on the other hand, involves the actual seizure of your assets to satisfy the tax debt.
Can the IRS take money directly from my bank account?
Yes, the IRS can issue a bank levy, which freezes your bank account for 21 days. After this period, the funds are usually transferred to the IRS unless you can prove extreme financial hardship within that window.
How does the IRS garnish wages?
If your tax debt remains unpaid, the IRS can contact your employer to withhold a portion of your paycheck. This garnishment continues until the debt is fully paid or other arrangements are made.
What assets can the IRS seize through a levy?
The IRS can seize various assets including your bank accounts, wages, vehicles, real estate, and other valuable personal property to cover your tax liabilities.
Can a tax attorney help stop IRS liens or levies?
Yes, a qualified IRS tax lien and levy attorney can help negotiate with the IRS, stop wage garnishments, and potentially release liens or levies by setting up payment plans or challenging the IRS’s actions based on your financial condition.