Maryland IRS Tax Levy Lawyer
When you owe back taxes to the IRS, there are a number of tools that the IRS has the authority to use to collect those taxes from you. One method of federal tax collection involves the usage of a tax lien and levy.
Tax liens allow the federal government to protect its interest in many of your assets, and tax levies allow the federal government to actually seize your assets to satisfy unpaid tax obligations.
Contacting a Maryland IRS tax levy lawyer could be key to fighting back against a tax lien or tax levy. Let a seasoned tax resolution attorney assist you.
IRS Tax Lien in Maryland
A tax lien protects the federal government’s interest in property that individuals own. The IRS can issue a tax lien on individuals’ property if those individuals owe federal taxes, including real estate, vehicles, businesses, and other items of personal property. See 26 U.S.C. § 6321. Plus, if individuals acquire additional property in the future, the IRS tax lien can attach to that property, as well.
A tax lien does not automatically result in the forfeiture of individuals’ property to the federal government to satisfy a tax debt. Rather, it reserves the right of the IRS to benefit from that property in the future if it is necessary to collect a tax debt. For instance, if individuals sell a property that is subject to an IRS tax lien, any proceeds from the sale will first go to satisfy the IRS tax debt.
Tax Lien Procedures
In order to place a lien on individuals’ property, the federal government must issue a Notice of Federal Tax Lien. This is the official notice to the property owners and their creditors that the IRS has placed a tax lien on the property listed in the notice. When individuals receive Notices of Federal Tax Liens, then they have a few options. They can pay the unpaid tax obligation in full within 30 days or appeal the notice of lien.
In an appeal, taxpayers must explain why they disagree with the IRS decision to impose a lien and propose alternatives to the lien. An IRS tax levy attorney in Maryland can assist taxpayers in preparing and submitting an effective appeal to the IRS.
IRS Tax Levy in Maryland
A tax levy is the mechanism by which the IRS can actually take individuals’ property from them in order to satisfy tax debts. See 26 U.S.C. § 6331. The IRS can place a tax levy on all types of property, including the following:
- Homes
- Vehicles
- Wages
- Bank accounts
- Business assets
- Retirement accounts
There are some assets, however, on which the federal government cannot place a levy. For example, the IRS cannot place a tax levy on unemployment benefits or workers’ compensation benefits. The IRS also normally cannot place a levy on household items, such as clothing or furniture. Nonetheless, the IRS can seize assets on which it does have the authority to place a levy. This includes garnishing bank accounts and wages until a tax debt is paid in full.
Tax Levy Procedures
Prior to seizing or garnishing individuals’ property, the IRS must issue a Final Notice of Intent to Levy. This notice explains the individuals’ right to appeal the decision within 30 days. In an appeal, individuals can contest a decision to levy their property and suggest alternatives to the levy.
For example, individuals could qualify for relief through an Offer in Compromise or an IRS installment plan to satisfy the outstanding tax obligation. With the assistance of a Maryland IRS tax levy attorney, taxpayers may be able to satisfy their tax debts without having their property seized by the federal government.
Talk to a Maryland IRS Tax Levy Attorney Today
When you are facing an IRS tax lien or levy, you risk forfeiting your home, your vehicle, your bank account contents, your wages, and your other assets to pay for your unpaid federal tax debts.
There are strict deadlines for challenging notices of tax liens or levies, so it is essential that you contact a Maryland IRS tax levy lawyer as quickly as possible after receiving a notice from the IRS or become aware of any IRS collection activities.
