Four
Common Tax Questions and Answers: Help with the IRS, Audits, Liens, Levies, and
Garnished Wages
Dealing with
the IRS and related tax problems can be anyone's worst nightmare. Once the IRS
has begun to go after you, it can seem that they won't stop even after you
think they have gotten what they want. The tax lawyers of Jones & Ryan have
been working since 1995 to solve such nightmares. Grey W. Jones, Esq. and
Cheryl L. Ryan, Esq. are tax attorneys with extensive knowledge in tax law and
today want to answer some of your common tax questions for free. Below you will
find four answers to common tax and IRS related questions. If you wish to find
more in-depth answers and get more tax help our website offers an extensive
frequently asked tax questions section that we are constantly updating, as well
as, a simple tax help questionnaire to start a free initial consultation with
our tax lawyers.
Why did the IRS
file a tax lien against me?
A tax lien,
usually filed with your county recorder, serves as notice to those who may loan
you money (home or car loan, bank loan, credit card advances, etc.) that once
the lien is filed, the IRS claim against you for taxes will come before those
of anyone loaning you money after the filing. With certain exceptions it
attaches to all property, real and personal, tangible and intangible, in which
you have an interest, wherever the property may be located. A lien does not
result in the actual seizure of any property, real estate or other forms.
Further, before the IRS can file a lien against your property, it should give
you 30-day notification that it intends to do so. This may give you time to
make a payment or other arrangements.
Can the IRS levy on my house? On my wages? On my bank
accounts? What about retirement funds?
A
levy usually means the property is actually seized by the IRS. In the case of
real estate, it means the IRS can force a sale of the property and keep the
proceeds up to the amount of taxes, penalties and interest owed. A certain
portion of wages and commissions are exempt from levy; the amount depends on a
number of factors, including the number of dependents. All forms of bank
accountssavings, checking and CDsare subject to a levy in full. In order to
catch subsequent deposits, the IRS must serve a new levy on the bank. Once
wages are levied upon, the same levy reaches all subsequent wages, commissions,
bonuses, etc. No forms of retirement funds are exempt from levy, including
social security payments and other forms of government pensions. However,
unemployment and workers compensation benefits are exempt from levy, as are
SSI and some forms of public assistance. A small amount of household and
personal effects, and tolls and equipment used in the taxpayers trade or
business, are exempt from levy.
The IRS is garnishing my wages. How can I stop
them?
The IRS will garnish your wages
after proper notice. All the IRS wants is payment or a good reason why you
cant pay. This is when you can negotiate a payment plan or an Offer in
Compromise or convince the agency you are worthy of uncollectible status. It is
imperative after you receive a notice of Intent to Levy that you deal with it
immediately. Intents to Levy are time-sensitive and if you miss your deadline
to reply, i.e. make payment arrangements, your employer will be made aware of
the situation and your wages may be garnished. If you're not sure how to go
about this, consult a qualified tax attorney to assist you.
When is the right time to consult an
attorney?
There are various reasons you
would need to consult an attorney such as: fraud investigation, a long audit or
one that involves legal issues, inadequate books/records, not filing returns
for a number of years, if you don't actually owe taxes, if the statute of
limitations has run out or if you would feel more comfortable dealing with the
IRS through an attorney. Whatever the reason, don't hesitate to contact an
experienced tax attorney to help you through your foray into the wide world of
IRS red tape. Many law firms including Jones & Ryan offer free initial
consultations to better understand your situation and decide how they can help.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
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