An IRS levy or wage garnishment is a very common collection method of the IRS. For the IRS, this method is extremely simple and effective since a bank or an employer will in all likelihood obey the instructions of the IRS. Although issuing a levy is as simple for the IRS as mailing a piece of paper, IRS levies and wage garnishments can be devastating for a taxpayer living paycheck by paycheck. When negotiating with the IRS for the release of your levy or wage garnishment, experience is critical. At Dallo Law Group, our San Diego tax lawyers are educated and experienced in the levy and wage garnishment process. Contact us today for a free consultation.
What is a Tax Levy or Wage Garnishment?
When the taxpayer has unpaid tax debt (back taxes) with the IRS, the IRS can attempt to collect the amount owed through collection activities. A levy or wage garnishments is the main method of collection for the IRS. A levy gives the IRS the ability to seize and sell your property to satisfy that debt. Because the IRS typically has information regarding your bank accounts and employers, wage garnishments and bank levies are extremely common and the IRS will just reach into your bank account and take out money to cover the debt that you owe.
What property can the IRS levy?
The IRS levy is very powerful. The IRS has the authority to levy all property you own, with a few limited exceptions (such as clothes and school books, workers’ compensation, business tools, and a few others). This means the IRS can levy your cars, boats, investment property, bank accounts, tax refund payments, wages, and in many cases, even your home! If the IRS has attempted to levy or has issued a notice of levy over your property, contact Dallo Law Group to determine your rights…
When can the IRS issue a levy?
If you have unpaid taxes and the IRS has demanded payment for those taxes (Notice CP14), the IRS can issue a levy to collect that debt. In most cases, the IRS must send a levy notice (Notice CP504) and wait 30 days before commencing levy action against you. In limited circumstances, the IRS can levy your assets without providing notice. Although the IRS must follow very strict procedures in this process, they often perform these levies unlawfully and inappropriately. Let us fight to protect your rights and help secure your property from levy!
How Can Dallo Law Group Help?
Your rights in the levy process are extensive and significant. If you feel that the levy action taken against you is inappropriate, Dallo Law Group will communicate with the IRS and explain that the levy action taken violates your due process rights. If the IRS refuses to resolve the matter, we will file a Collections Due Process Hearing (CDP) and force the IRS to stop collection activities until a final decision in the hearing is made. In the event the IRS is unable to resolve the case at the hearing, we can file a petition with the United States Tax Court and litigate your case with a neutral judge.
Because a levy reaches your hard-earned assets and livelihood, it is essential that your tax professional is educated and experienced in this arena. While a CPA may be experienced in filing and preparing your tax returns, he or she may not necessarily be trained in the intricate details of the Internal Revenue Code and in litigation. A tax attorney is trained, skilled, and educated in negotiating with the IRS, understanding how the tax law applies to your individualized case, and how to present your tax case to the IRS or the Tax Court in the best light.
**IMPORTANT NOTICE*** Timing is crucial for levy challenges! Once the IRS has issued a levy notice, you may only have 30 days to file a CDP hearing and also 30 days to file a petition with the Tax Court if you disagree with the decision at the hearing. Please don’t wait until it is too late to protect your hard earned property.
Contact Dallo Law Group when you receive collection notices from the IRS so that we can fight to protect your rights!