Tax Levy vs. Garnishment vs. Tax Lien: A Comprehensive Guide
At Pro Tax Solver, we believe in providing you with a thorough understanding of tax levies, garnishments, and liens—three crucial concepts in the world of taxation. Each of these actions, enforced by tax authorities, carries significant financial implications. To navigate your tax-related challenges successfully, it’s essential to grasp how each one works and how to address them effectively.
Tax Levies:
A tax levy is a serious measure taken by the government to satisfy a tax debt by seizing funds or assets. Here’s what you should know about levies:
- Bank Levies: Both individuals and businesses may face bank levies, where the IRS or state authorities freeze your bank account and seize the available funds. A bank levy has a limited window of 21 days before funds are sent to the IRS. Releasing a bank levy can be challenging, often requiring proof of financial hardship or demonstrating that the funds belong to someone else.
- Levies on Accounts Receivable: In cases where accounts receivable or credit card processing is targeted, resolution with the IRS is necessary. Expedited release of these levies may be possible by demonstrating their necessity to sustain business operations.
- Property Seizure: While relatively rare, the IRS can seize property, which may include real estate, vehicles, or tangible assets. Notably, personal residences and vehicles are rarely targeted.
Tax Garnishments:
Tax garnishments primarily affect your income, potentially taking a significant portion of your earnings. Here’s how to address garnishments:
- IRS Tax Garnishments: Individuals facing wage garnishments can often have them lifted by reaching a resolution on overdue tax debts. Timely action is crucial.
- State Garnishments: Garnishments from state tax authorities can be more challenging to release. Certain states, such as California and Colorado, tend to be less willing to release garnishments. However, even in these cases, options may exist to substantially reduce the garnishment amount.
Tax Liens:
Tax liens represent yet another facet of tax-related challenges:
- Federal and State Tax Liens: Unpaid tax debt can lead tax authorities to place a lien on your property, creating a legal claim to your assets. Tax liens can impact your credit and your ability to sell or refinance property until the tax debt is satisfied. Addressing tax liens promptly is crucial to prevent further financial consequences.
Managing tax levies, garnishments, and liens can be intricate and emotionally taxing. Pro Tax Solver is here to assist you.
Seek Professional Assistance:
Our team of Enrolled Agents and CPAs possesses the expertise to navigate these complex situations on your behalf. Don’t hesitate—dealing with tax levies, garnishments, and liens demands urgency and professionalism.
Contact us today at (702) 381-2425 or complete the form below. One of our dedicated professionals will promptly assist you in resolving your tax-related challenges. Your financial peace of mind is our priority, and we are committed to guiding you every step of the way.
Top of Form
Bottom of Form
Call Now!
(702) 381-2425 or click here for a 30 Minute Free Consultation
Offering A One Stop Accounting Solution.