What Is Tax Levy Columbus OH? | Columbus OH

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Tax Levy

IRS Tax Levy Ohio

Explore Your Options for Tax Levy with a Columbus Tax Levy Attorney

If you recently received a notice and demand for payment from the Internal Revenue Service (IRS), you may wonder, “What is the tax levy in Columbus OH?” The tax levy is another collecting tool available to the IRS. When a taxpayer owes outstanding taxes, the IRS can seize bank accounts, investments, personal property, and wages until the tax is paid in full. 

The IRS pursues collection efforts aggressively, just like any creditor would. You have a limited amount of time to reply to IRS collection notices before tax levies are filed against you. Following the imposition of a levy, a number of negative outcomes may occur, including increased stress, financial difficulty, the restriction or loss of property, and a poorer credit score. It may be feasible to avoid a levy but it is far more challenging to remove one once it has been imposed without paying the obligation in full.

There is no alternative to an experienced IRS tax lawyer when it comes to tax levies and tax debt. Tax levy issues never go away on their own, but there is a fix available for you. Call Sheppard Law Offices right away to discover how to address this difficult situation. 

Why Do I Need a Tax Levy Lawyer in Ohio?

A tax levy notification from the IRS can be devastating. Anyone could be significantly impacted by the possibility of a levy, which could result in actions like the confiscation of assets, the freezing of accounts, or the garnishment of earnings.

Unlike creditors, the IRS possesses unheard-of powers that many taxpayers are unaware of until it is too late. A tax levy requires fast action because it might be financially catastrophic. A Columbus OH tax levy attorney from Sheppard Law Offices who understands the levy procedure and can offer strategies to prevent the seizure of your assets could be your best solution. 

You have thirty days to file an appeal against the final notice of intent to levy. If you decide to retain our services, we can help you:

  • Stop the Internal Revenue Service from taking your bank accounts
  • Prevent the IRS from seizing your home and possessions
  • Stop the Internal Revenue Service from taking Social Security checks
  • Retrieve recently confiscated property
  • Prevent the IRS from garnishing your wages or company income

It could be difficult for you to defend your rights on your own in a tax-related situation. You will have a better understanding of the law and how it pertains to your case with the aid of a tax lawyer at Sheppard Law Offices. Schedule a free consultation with us today!

What Is Tax Levy in Columbus OH?

A tax levy is the legal seizure of property to fulfill a tax debt. Levies are different from liens. People frequently confuse tax levies with tax liens, although these are two distinct legal concepts. A tax lien is a legal claim against property to secure payment of the tax debt, whereas a levy seizes the property to settle the tax debt.

An IRS tax levy has the power to garnish your earnings, remove money from your bank account or any other financial account you have, and confiscate and sell your real estate, vehicle(s), and other personal property.

It is imperative that you comply with the levy if you get a notice of levy from the Internal Revenue Service. To help you understand the process and how to resolve it right away, contact us at the Sheppard Law Offices. 

What Are The Types Of Tax Levy? 

The type of levy that is imposed by the IRS is determined by the specific circumstances of the taxpayer. Nonetheless, the assets that may be monetized with the least amount of effort are often seized first. 

The following are examples of common types of tax levies:

  • Wage Garnishment – The IRS may require that a particular amount be deducted from your paycheck until the tax debt is settled. However, if a tax attorney can demonstrate your financial hardship, the wage garnishment might be reduced or erased.
  • Property Seizure – This may involve your car and home, among other assets, to settle the tax debt.
  • Bank Levy – The IRS may ask your financial institution to take monies from your account. If the tax debt is not repaid the first time, the process will be repeated when more money becomes available.
  • 1099 Levy – The IRS can confiscate existing 1099 payments owed to you, but it has no claim on future payments.
  • Other Assets Seizure – This includes revenue from rental properties, life insurance, retirement benefits, dividends, and commissions.
  • Passport Seizure – The IRS can request that your passport be withdrawn or rejected if you owe more than $50,000.

When Will The Internal Revenue Service Issue A Levy?

If you do not pay your taxes or make arrangements to settle your debt, the IRS determines that a levy is the next appropriate action. The IRS may levy any property or right to property that you own or have an interest in. 

For instance, the Internal Revenue Service may seize property that legally belongs to you but is currently in the possession of another person such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions. You also run the risk of the IRS seizing and selling property that you own such as your car, boat, or house.

What Actions Must The Internal Revenue Service Take Before A Levy Can Be Issued?

The following steps need to be taken before the Internal Revenue Service can issue a tax levy:

  • The IRS determined your tax liability and gave you a Notice and Demand for Payment or a tax bill
  • You failed to pay or refused to pay the tax
  • At least 30 days prior to the levy, the IRS gave you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. The IRS may deliver this notice to you in person, leave it at your home or place of business, or send it to your last known address by certified or registered mail with a request for a return receipt. 
  • The IRS has issued you a Third Party Contact Notification informing you that the IRS may contact third parties regarding the determination or collection of your tax liability.

Can Your IRS Tax Levy Released Without Fully Paying The Tax Debt? 

An IRS tax levy can be released if the amount is paid in full, but there are other circumstances that can lead to an IRS tax levy release as well. An IRS tax levy release can be requested by contacting the IRS directly. If it is determined that the tax is creating an immediate economic hardship, the Internal Revenue Service may release the levy. 

The IRS must release a levy if it concludes the following:

  • You paid what you owed
  • The collection period terminated prior to the levy being imposed
  • The removal of the levy will assist you in paying your taxes
  • You enter into an installment arrangement, and the conditions of the agreement prevent the levy from continuing
  • The charge causes economic hardship, which means that the IRS has found that it hinders you from fulfilling your basic, reasonable living expenses
  • The property is worth more than the amount owing, and releasing the levy will not impair our capacity to collect the debt

Sheppard Law Offices have prior experience working with similar scenarios and are familiar with the requirements necessary to demonstrate that a hardship is present and that the IRS tax levy release process should be started. Reach out to our tax levy attorney in Columbus so we can help you resolve this immediately. 

What Happens After My Property Is Seized?

If your home or other property is seized by the IRS, the agency will sell your interest in it and use the money to pay off your tax debt. The IRS will determine a minimum bid price before you put your property up for sale. Additionally, the IRS will offer you a copy of the calculation and the chance to contest the fair market value determination. The IRS will provide you with the notice of sale and notify the public of the impending sale, through neighborhood newspapers or advertisements placed in visible locations. 

The IRS will typically hold onto your property for at least 10 days after publishing notice to the public. The cost of acquiring and selling the property, as well as your outstanding tax liability, are covered by the proceeds of the sale. The IRS will provide instructions on how to obtain a refund if there is money left over from the sale after your tax bill has been settled.

How Do I Get My Seized Property Back?

In order to settle your tax debt and request a seizure release, contact the IRS right away. If the IRS determines that the seizure is resulting in an imminent financial hardship, it may potentially decide to release the asset. 

You may appeal the IRS’s decision if it rejects your request to release the seizure. You have the right to make an appeal both before and after the IRS seizes and sells your car, house, or other property. You may submit a claim to have the seizure proceeds returned to you after they have been forwarded to the IRS. You may also file an appeal if the IRS rejects your request to have the property it has confiscated returned to you.

Call our Seasoned Columbus Tax Levy Attorney Now!

Avoiding a levy requires swift action, and hence you are strongly encouraged to speak with a qualified tax attorney about your situation to determine the ideal course of action. Our tax attorney at Sheppard Law Offices is committed to negotiating arrangements that are best for you and not the Ohio taxation authorities.

Our tax lawyers have successfully stopped numerous people and families from facing IRS levies. We are experienced and skilled in tax law and have a thorough awareness of the various resolution alternatives available to clients who must deal with aggressive collection tactics.

The first notice you receive is the ideal opportunity to reach out to our legal team. We can try to stop a levy if we get involved early. If these actions are already underway, it may still be possible to reach a satisfactory conclusion. We are adept at stopping levies and negotiating different repayment arrangements with the IRS.

Know that you have a lot of options for dealing with IRS levies. To find out what is tax levy in Columbus OH and what are your legal alternatives, contact our law office in Ohio.

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Tax Levy Process

Before the IRS can issue a tax levy, the following actions must take place:

  1. The IRS evaluates your tax debt and issues a “Notice and Demand for Payment”.
  2. The IRS issues a “Final Notice of Intent to Levy” and “Notice of Your Right to A Hearing 30 day”. The notice may be issued in person, at your home, or at your workplace, or sent to your last address on file.
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Avoiding a levy requires action, and you are strongly encouraged to speak with a qualified tax attorney about your situation to determine the ideal course of action. Tax Attorney Kenneth L. Sheppard, Jr. of Sheppard Law Offices is committed to negotiating arrangements that are best for you and not the federal or Ohio taxation authorities.

Contact Sheppard Law Offices to discuss your particular situation. For your convenience we have tax law offices in ColumbusNewark, and Mount Vernon, Ohio. Call today to schedule your free consultation at (614) 523-3106.

Contact Sheppard Law Offices and Attorney Kenneth L. Sheppard, Jr. to schedule your free initial consultation.