Know Your Rights

Knowing your rights is critical in being able to overcome your IRS tax debt.  It is important to realize that you do have alternatives and we can help you understand what options are best for you.  Regardless of your IRS tax debt issues, we know how to handle them.  Decide to improve your life and contact us.

Federal Tax Liens

When you are behind in your Federal taxes, the IRS has several aggressive options to impose and complicate your life.  They can file a tax lien within your county of residence blemishing your credit report.  This potentially prohibits you from utilizing other lenders who will consider you a bad credit risk.  It may also reduce your chances of being able approved for future credit accounts, sign up for new credit cards, buy a home or car, or sign a lease.  After a Notice of Federal Tax Lien is filled, your creditors are publicly noticed that the IRS has a claim against all your property, including property acquired after the lien is issued.

The IRS will grant release of lien forms under certain circumstances. If you received a Notice of Federal Tax Lien, then you need to take immediate action to protect yourself.

Federal Tax Levies

This is only the beginning though, because the IRS has additional power to service a Notice of Levy which can be attached to your wages, deposited funds into your bank, or home if you are a homeowner.  A bank levy is attached to only the money you currently have in your account while a wage levy is continuous.  A wage levy is attached to your wages requiring your employer to only release a small percentage of your wages to you which is only removed after the levy is released or tax is paid in full.   

The IRS will grant federal tax levy release forms under certain circumstances. If you received a Notice of Intent to Levy, then you need to take immediate action to protect yourself.

Garnishment of Bank Accounts

With pass due taxes, the IRS can garnish bank accounts basically freezing the funds currently in your bank account.  Your State laws and banking rules determine how the garnishment is handled, but you are normally notified only after your funds are no longer touchable.  After the IRS has garnished your bank accounts, your financial institutions can no longer clear any check nor allow you to move or without funds from your accounts.  The only exception is if your accounts contains money in addition to the funds garnished which then allows financial institutions the ability to allow you access only those funds.
If you received notice of bank account garnishment, then you need to take immediate action to protect yourself.

Garnishment of Wages

Garnishment of wages means the IRS takes directly a certain percentage of your wages.  The key to understanding wage garnishment is understanding disposable income.  Basically, disposable income is the money left over after paying all required taxes and national insurances.  When the IRS garnishes your wages, Federal law limits the maximum amount that can be garnished to 25% of your disposable earnings for that week, or the amount by which disposable earnings for that week exceed thirty times the Federal minimum hourly wage, whichever is less.

There are also a few exceptions that supersede the 25% rule including any debt due for any state or federal tax, defaulted student loans, child support/alimony orders, or any orders of a United States court having jurisdiction over cases under chapter 13 or title 11.

There is very little notice required of the IRS to inform you prior to imposing these levies, liens and garnishments. So you must act quickly to get control of the situation and remove your tax debt.  Contact your professionals through our secure form today.