The IRS is a fearsome creditor that can gain access to many of your assets to satisfy your tax debt. Unlike other creditors it doesn’t need to bring a lawsuit to go after you’re the bulk of your assets. The IRS has the ability to use any of the following collection actions against you:
- Serve a levy on your bank account
- Serve a levy on your wages
- File an IRS tax lien
- Seize your state tax refund to satisfy your federal tax debt
- Seize your house or car
- Charge you interest and penalties for failing to pay taxes
When the IRS begins collection actions against you, you may have a limited amount of time to prevent them from seizing your actions. For example, once the IRS serves a levy on your bank account, your bank has 21 days to comply with the levy.
You must act quickly to stop these collection actions. It is recommended that you contact a tax attorney to discuss your case and determine the best course of action.
Do You Have a Tax Controversy Case?
There may be several options for reducing or eliminating your tax debt to stop IRS collection actions. If you have any doubt as to whether you actually owe the IRS the amount of tax liability it is claiming, you may be able to fight the tax assessment.
The IRS can make incorrect calculations, mistakes during audits, or attempt to collect tax after the statute of limitations expires. In these tax controversy cases, you can attempt to argue that you do not actually owe some or all of the tax the IRS has assessed against you.
It can be difficult to tell if you have a legitimate tax controversy claim, but if you have a large tax debt, you should consult with a tax attorney to find out.
Are You Able to Pay Your Tax Debt?
Even if you unquestionably owe the tax that the IRS is attempting to collect you still have many options to eliminate, reduce, or delay tax payments.
You can request the IRS put your account into Currently Not Collectible (CNC) status to get a reprieve from collection actions. You can attempt to have penalties reduced due to reasonable cause or First Time Penalty Abatement.
You can also work out an installment agreement or Offer in Compromise. All of these methods can either reduce your tax debt or give you more time to pay.
If tax levies or liens have already been placed on your property, you can also negotiate release or these levies or liens.
If you have a substantial tax debt to pay off and the IRS is attempting to levy your assets, talk to a tax attorney about which tax relief strategies may apply in your case.