If you are facing Tax levy, you need the professionals on your side. My tax settlement has been helping clients with their tax issues for more than 10 years. We can help you overcome tax obstacles and get your financial situation on track.
What is Tax Levy?
The IRS has the legal right to impose fines on the people who don’t pay tax on time. Some of these penalties are tax levies. For instance, if a person reported income fraudulently may face a penalty of jail time. Another case is a taxpayer who hasn’t filed their return on time. The IRS will likely assess a monetary fine or lien on their property. Tax levy refers to these kinds of penalties.
Why should you choose My Tax Settlement to help with IRS Levy?
Experts at My Tax Settlement have been assisting taxpayers with tax levies for years. Our experienced and qualified staff acts fast in the event of a hardship caused by levy. We are also committed to the financial well-being of our clients. In case you received a final notice of intent to levy or discovered a levy on your property, bank account, or wages, give us a call immediately. We are available for anything so you can contact us by filling the form below or call us today at 619-318-8564.
Difference between Tax Levy and Tax Liens
Tax liens and tax levies are often confused with one another but they involve 2 very distinct actions:
A tax lien is when the IRS makes a legal claim against your property in the event that you fail to pay your taxes. It includes everything from your financial assets to the personal properties. The lien will not take effect until the property is sold. You can get rid of the lien by paying your tax in full but if you can’t do so, it will be removed within a month. We will help you with determining the best option to have it removed in the timeliest manner possible by keeping your financial condition in mind.
Unlike tax liens, tax levy involves the IRS actual seizure of assets and property to fulfill your owed taxes. They can do that legally but you will be notified first. In the case of lien, the IRS makes a claim against your assets but you typically won’t be affected until you physically sell a property. On the other hand, in tax levy, your property will be taken from you. Make sure to respond to the IRS within the 30 days because if you don’t, the IRS will seize your property.
Common types of IRS Levy Services we are offering
Wage Garnishment Levy
A wage levy is the most common type of levy and it allows the IRS to garnish wages directly from your employer. It is generally organized by the HR department of the company and the IRS can order your employer to subtract the amount of money from your paycheck until you clear your whole amount. The amount the IRS can take is limited to 25% of your disposable earnings or by the weekly wages that exceed 30 times the min wage.
Property Seizure Levy
The IRS has the authority to seize or sell your assets to fulfill your tax obligation if you pay it on time. It includes real estate, cars, jewelry, or anything etc. It is not as common as wage garnishment but it still does happen.
Tax refund Levy
The IRS is capable of withholding your money owed that would otherwise come in the form of a tax refund. It can even take your state and other municipal refunds.
The 1099 Levy
The IRS can also levy forms like 1099s which are generally used by freelancers and independent contractors. They can seize any amount of money you own with a 1099 levy. But, they can attempt to seize any income for anticipated future work that hasn’t been performed.
A bank levy includes the IRS contacting your bank to freeze your funds. After 21 days, they will deduct the funds from your account. If the first levy doesn’t involve your tax issue, then they will continue the levy as your funds replenish until you will pay the full amount.