Issued a Lien or Levy in Pennsylvania? Don’t Know Where to Turn? Trust The Experts at Sheppard Law Offices To Help You With All Your Tax Needs!
Tax Liens and Levies
When the IRS notifies you of an unpaid tax debt and they do not receive the payment, it can end up getting a lien or even a levy to make sure that the IRS gets their taxes that are owed. If you live in Pennsylvania, and you received your first notice, call Pennsylvania’s trusted tax attorneys at Sheppard Law Offices right away so the IRS can’t take your assets to pay your tax debt that is owed.
Always take these notices seriously, and before they get out of hank make sure you call tax attorney, Kenneth Sheppard to make sure that your assets aren’t taken by the IRS to pay your back taxes.
IRS Tax Liens
When you receive a “Public Notice of Federal Tax Lien” from the Pennsylvania IRS, this can alert creditors that the government has the legal right to your assets and property. When a Tax lien is placed on your property and assets the IRS will not take anything at this point of the process.
A Tax Lien is public and can affect you financially, and when your trying to purchase assets like a new car, home or even apply for loans and credit cards.
What is The Tax Lien Process in Pennsylvania?
The process of an IRS tax lien is as follows:
Step 1: A tax amount owed on tax return is left unpaid
Step 2: A tax bill is sent to your last known address
Step 3: Amount is paid in full or if not, the IRS will file a “Notice of Federal Tax Lien”
Will a Tax Lien Harm my Credit?
When a tax lien is issued in Pennsylvania, it will show up on your credit report, in which financial institutes have access to. A lien can affect you getting a new car, loans or even a mortgage, to purchase a new house. It can create a difficult financial situation for the taxpayer.
What is the Difference Between a Lien and a Levy?
A lien and a levy are two IRS processes that are put in place to collect the taxes that are owed to them.
When a Pennsylvania taxpayer doesn’t pay their taxes, the IRS will first send you a notice and you have 30 days to pay the taxes owed in full, however, you can hire a tax attorney that specializes in the Pennsylvania IRS processes, and they can make the process with the IRS easier to handle.
If nothing is done in the 30-day period that the taxpayer is given, the IRS will then issue a “Notice of Federal Tax Lien.” When the amount is still not paid in full, the IRS will then issue a tax levy which allows then to seize your property that is equaled to the amount owed, they are then sold to pay the taxes owed.
IRS Tax Levies
When the situation of not paying your tax debt gets more serious the IRS will then use a levy to size and sell your property or assets to pay your taxes owed to them. The IRS can also levy other items if your assets and property don’t add up to what is owed. The IRS can levy your wages, 1099’s bank accounts and even items like your retirement account. These types of federal tax levies include the following:
Bank Levy – The IRS can freeze your bank account 30 days after your final notice called “Notice of Intent to Levy” is issued to you. The IRS will only have access to the amount of money that was in the account, the day that they froze your account.
1099 Levy – With this type of levy the IRS can take an entire check that is owed to a contractor, and will be seized.
Retirement Account or Social Security Levy – The IRS can go after accounts that are supposed to be protected like your social security or retirement accounts. Some items that they can levy that falls under this type of levy includes: Pensions, profit sharing, stock bonus, IRSs and many others.
Wage Garnishment Levy – The IRS can take your wages to collect what is owed to them. They cannot take the full amount, but if this is done to someone it usually doesn’t leave much money to the taxpayer to pay their monthly expenses.
Property Seizure – This form of a levy can give the IRS the authority to seize almost any form of asset that is in your name. This includes your house, boat, car and more.
Seizure of Passports – The IRS can request that the state department revoke, or deny your passport if you owe $50,000 or more in back taxes.
Can I Stop a Tax Levy in Pennsylvania?
Below are a few ways to stop a tax levy:
Pay your debt in fullEnter an installment agreementDemonstrate undue hardshipFile an Offer in Compromise (OIC)Negotiate a release of the levy
What is a Seizure?
A seizure is not like a levy. A seizure involves the collection of assets including your bank account. What a seizure contains of is the physical taking of a person’s assets. This step happens in larger cases when someone ignores all the requests sent by the IRS to pay their outstanding back taxes.
When the IRS Seizes your assets they auction them off to pay your taxes. When auctioning off your assets they can usually only get half of the value, so they will seize more of your property until they receive the full amount that is owed to them.
Act now by contacting your Pennsylvania tax attorneys at Sheppard Law Offices if you have received an IRS “Notice of Seizure”.
The IRS will issue several types of forms when they are trying to collect a Pennsylvania taxpayer’s money owed and back taxes. If you receive any letters from the IRS there are multiple forms that you can submit. To make this process with the IRS easier and stress free you best option is to contact a professional Pennsylvania tax attorney to help you get the best result. At Sheppard Law offices you can get the help needed to get a fresh start with the IRS and get your taxes paid in full, by coming up with the best payment option that you can afford.