The IRS usually starts the tax-levy process with wage garnishment, by contacting the employer of the person in default, asking to redirect a part of their future payments to the IRS. That’s just one of several types of levy the IRS can impose. While you can always count on the IRS tax lawyers at the Law Offices of Nick Nemeth to help you out with all sorts of IRS tax related problems, it would be sensible to cover the basics. Read on to learn more about the property IRS can lawfully levy, and how to prevent and undo the damage.
1. Wage Garnishment
This is probably the most common type of IRS levy. The agency will contact your employer and tell them to hold back a certain amount of your wage. While your employer cannot legally fire you for wage garnishment, the situation can be quite embarrassing as well as financially painful. The garnishment process carries on until your debts are fully paid. You can also stop garnishment by making a different arrangement through experienced lawyers who can help resolve IRS tax problems.
2. Bank Levy
The IRS is able to reach out to your bank to ask for the deposits in your account as repayment for your tax debt. You usually get a grace period of twenty-one days to address this situation, though you cannot use the funds in your account during the period as they get frozen.
3. Social Security
The Social Security Administration can be requested to send 15 percent of all your payments to the IRS, which will continue until the outstanding amount is cleared. You can, however, consult a tax lawyer to get help with IRS problems resolution.
4. 1099 Levy
If an individual or a business owes money to an independent contractor, the IRS is able to ask the debtor to send what they owe to the IRS instead of the contractor. The IRS is capable of issuing multiple levies for collecting on the 1099 income. Additionally, the IRS may contact the retirement account holder of the debtor, renters living in the debtor-owned buildings, and almost anyone who is paying the debtor money.
5. Other Property
Land, real estate and vehicles are all eligible to be seized by the IRS. Basically, the tax body has the right to acquire any asset that holds value and then sell it to recover the debt. Fortunately, you will rarely see the IRS seize any of these properties and as this only happens only in extreme cases.
Need Professional Assistance? Speak with Us
The levy process may seem simple, but it involves a lot of intricacies that call for professional expertise. If you are unable to meet your IRS tax debt obligation, speak with an IRS tax attorney at the Law Offices of Nick Nemeth – a team of experienced IRS tax lawyers with years of experience in helping individuals and businesses with all sorts of tax problems. For a confidential, no-obligation consultation with one of our IRS tax lawyers, fill out our contact form or simply call (972) 627-4580.