Tax Levies and Liens
Tax Levies and Tax Liens are tools the government uses to collect unpaid taxes, but they work in different ways.
Here’s What Can Happen
🔸 Wage Garnishment A portion of your paycheck is taken before it hits your bank account.
🔸 Bank Levies Tax authorities can freeze and withdraw funds directly from your checking or savings accounts.
🔸 Tax Liens The government places a legal claim on your property. This affects your ability to sell, refinance,
or borrow and damages your credit.
🔸 Property Seizure In severe cases, the IRS can seize and sell your home, car, or other valuable assets.
Why Do Levies or Liens Happen?
❌ Unpaid back taxes
❌ Ignored IRS notices
❌ Missed deadlines for payment or filing
❌ Failure to respond to collection efforts
How to Stop or Remove a Levy or Lien
✅ Pay Your Tax Debt in Full This will immediately remove the threat of collection actions.
✅ Set Up an Installment Agreement Make monthly payments over time and avoid more aggressive collection.
✅ Apply for a Levy Release If the levy causes extreme financial hardship, you may qualify for temporary relief.
✅ Request a Lien Withdrawal or Subordination In some cases, you can reduce the impact of a lien or have it removed entirely.
✅ File an Offer in Compromise If eligible, you can settle your tax debt for less than the full amount owed.
✅ Work With a Tax Professional They can communicate with the IRS for you, negotiate solutions,
and guide you toward the best possible outcome.
Need Help?
Book a free consultation and let our tax professionals handle it for you. Don’t wait get back on track today!
Things You Might Be Wondering
Here, we’ve gathered some of the most common concerns, curiosities, and need to knows to help you get quick answers without the wait.
The time it takes to complete your tax return depends on the complexity of your situation.
For most individual returns, it typically takes 2–5 business days once all required documents are received.
If you haven’t filed taxes for multiple years, it’s important to act quickly to avoid penalties or enforcement actions from the IRS.
We can help you gather your documents, file back tax returns, and explore options available for you
The best structure depends on your goals, liability concerns, and tax situation. LLCs offer flexibility, S-Corps can reduce self employment tax, and C-Corps provide strong asset protection and are ideal for companies planning to scale.
We’ll evaluate your situation and guide you toward the right choice.
Yes, you can file after the deadline, but you may face penalties and interest if you owe. If you’re due a refund, there’s typically no penalty.
We recommend filing as soon as possible to minimize any potential consequences.
IRS notices can range from simple requests for information to audit or collection notices.
Don’t panic contact us immediately so we can review the notice and respond correctly on your behalf.
Legal tax reduction strategies include maximizing deductions, using business expenses, contributing to retirement accounts, and choosing the right entity type.
We’ll help you build a custom tax strategy tailored to your income and business model.
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