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.
Because they are public records they will show up on your credit report. This often makes it difficult and sometimes even impossible for a taxpayer to obtain any financing, even for an automobile or a home.
In addition, Federal Tax Liens can tie up your personal property and real estate. Once a Federal Tax Lien is filed against your property, you cannot sell or transfer the property without having the lien removed so that you can transfer a clear title.
Often, taxpayers find themselves in a no-win situation where they have property against which they would like to borrow, however, due to the Federal Tax Lien, they cannot use it as collateral secure a loan.
An IRS levy is the direct action taken by the IRS to collect taxes.
For example, the IRS can issue a bank levy to instantly obtain the money in your savings and checking accounts.
The IRS can levy your individual wages, or if you are a business, your accounts receivable.
The person, company, or institution that is served the levy must comply or face their own IRS problems. The additional paperwork this person, company or institution is faced with to comply with the levy usually causes the taxpayer's relationship to suffer with the person or entity being levied.
Levies are usually the result of poor or no communication with the IRS. They should be avoided at all costs!
When the IRS levies a bank account, the bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy) and send it to the IRS within 21 days, unless notified otherwise by the IRS.
This type of levy does not affect any future deposits made into your bank account, unless and until the IRS issues another Bank Account Levy.
An IRS Wage Levy is quite different.
Wage levies are filed with your employer and remain in effect until the IRS notifies the employer that the wage levy has been released.
Most wage levies take so much money from the taxpayer's paycheck that the taxpayer doesn't have a sufficient amount of money on which to live.
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 without delay for a free confidential initial tax consultation.
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 tax help from the experienced staff here at Wall & Associates, Inc. today.
*Not a solicitation for legal services.