Responding to Tax Debt Collection Actions
If the IRS has assessed you with tax liability, penalties and/or interest and you have not been able to pay them, you could find yourself subject to extremely oppressive collection actions such as wage garnishment and bank account levies.
Pursuing Solutions to Wage Garnishment
One way the Internal Revenue Service or the Arizona Department of Revenue will seek payment of an outstanding balance is to take a share of your wages until your tax liability is paid in full. This is called "wage garnishment." After wage garnishment, it may be difficult to pay the rest of your bills and living expenses. You need immediate assistance to protest such action and attempt to have the levy released.
A levy or wage garnishment to pay your tax debts could very well leave you without enough money to meet your financial needs. If your wages are being garnished, we will determine whether you have any grounds for objection and help you choose a course of action. But time is of the essence, so do not delay!
Before the IRS can take any of these actions, the IRS must issue a "Final Notice of Intent to Levy and Notice of Your Right To a Hearing" to the taxpayer, allowing up to 30 days from the date of the Final Notice to pay in full or to find another solution. A timely objection or protest can stop the levy and allow us to discuss and attempt to resolve your case. If you receive a final notice of proposed collection action, you must call us immediately. We often settle with an IRS or ADOR by entering into a payment plan.
You may have a limited period of time to act. Let us evaluate your case before its too late! Contact the lawyers of Bredemann & McFarlane in Scottsdale today to discuss what we can do to help.
Protecting Your Bank Accounts From Levies
The IRS can also levy on the bank accounts of people who owe tax debt. The first sign that a levy is about to take place is a notice from your bank that your accounts have been frozen. Once the IRS has frozen accounts, the bank must hold those funds for 21 days. If you are unable to resolve the matter with the IRS in this period of time, your bank will forward all of the money in the account to the IRS.
Unlike many private creditors, the IRS will typically go forward with a levy as soon as they are legally permitted to do so. For that reason, it is very important to contact an attorney right away.
In some cases, it is possible to diminish the amount of a levy. For instance, we can ask that enough money be left in your account for you to meet immediate obligations such as rent or auto payments.
But do not delay! Let us analyze your situation to find the best course of action for you and avoid or lift a tax levy or wage garnishment. Once the initial notices have been mailed and the 30 day period passes, the IRS or ADOR does not have to give any further notice before seizing your wages and other assets. Contact us to discuss your options for responding to a tax levy.
