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Understanding Tax Liens and Levies

Common Law PC March 11, 2024

Falling behind on your taxes is not uncommon, but it can lead to serious legal consequences. Most people tend to stress out over any issue with the IRS, and understandably so. You want to be in good standing with this federal agency to avoid negative repercussions in various aspects of your life. Instead of trying to manage a tax lien or levy on your own, seek legal counsel from a trusted tax attorney.  

At Common Law PC, we understand how challenging dealing with the IRS can be, especially when facing a notice that you don’t quite understand. Our team is here to provide you with the knowledge and representation you need to handle these challenges effectively and reach a resolution. 

What Are Tax Liens and Levies?

A tax lien is a significant step taken by the government to assert its legal claim on your property in response to unpaid taxes. It serves as a formal notice to creditors that the government holds an interest in your assets.  

In contrast, a tax levy is a more drastic measure that empowers the government to seize various assets, such as bank accounts, wages, and physical possessions, in order to settle your tax debt. The distinction between the two lies in the severity of action taken to enforce tax payment obligations. 

Why the IRS Issues Tax Liens and Levies

The IRS will consider a lien or levy as a final course of action only after exhausting other means to recover the unpaid taxes. These efforts involve sending several notices requesting payment and offering chances for you to contest or address your tax obligations. If you neglect to reply to these notifications and resolve your debts, it could result in a lien or levy being imposed to collect the outstanding sum. 

Mitigating the Impact of Liens and Levies

The financial and emotional toll of a lien or levy can be significant. Recognizing the hardships they can cause, Common Law PC is committed to guiding you through the process of managing or preventing these tax issues. We understand the stress and anxiety that can come with these situations, which is why our team of experienced professionals is dedicated to providing personalized support every step of the way.  

Whether it's negotiating with the IRS for a resolution, working out a payment plan tailored to your needs, or exploring other relief options, we're here to help minimize the impact on your finances and overall well-being.  

What to Do If You’re Facing a Tax Lien or Levy

If you find yourself with a tax lien or levy issued against you by the IRS, take immediate action to lessen the potential consequences. Here are steps you should consider: 

Understand the Notice: Carefully read the notice to comprehend the details of the lien or levy, including the amount owed and the deadlines. Understanding the specifics can help you determine your next steps. An attorney can help you grasp it fully. 

Don’t Ignore It: Ignoring the IRS will not make the issue go away. In fact, it will likely exacerbate the situation, leading to more severe penalties or additional action from the agency. 

Consult a Tax Attorney: Contacting a tax attorney with experience in liens and levies is one of the most important steps. We can offer professional advice, explain your options, and represent you in dealings with the IRS. 

Review Your Options: Your attorney can help you explore all available options, such as setting up a payment plan, challenging the claim, or negotiating an offer in compromise. Understanding each option fully can help you make a more informed decision. 

Take Action Quickly: Time is of the essence when dealing with tax liens and levies. Prompt action can prevent further financial damage and start you on the path to resolving your tax issues. 

Stay Compliant: Ensure that you meet all future tax obligations on time. Staying compliant can improve your chances of negotiating with the IRS and prevent additional liens or levies. 

At Common Law PC, we address tax liens and levies with the seriousness they deserve. With our help, you can take intelligent steps to manage and eventually overcome these challenges. 

The Importance of Legal Assistance 

An attorney experienced in tax law can play a central role in addressing and resolving the challenges posed by tax liens and levies. With their deep understanding of tax codes and IRS procedures, they can scrutinize your case to identify viable defense strategies or mitigating factors that might not be apparent to the untrained eye.  

Furthermore, these professionals are skilled negotiators who can communicate effectively with the IRS on your behalf. Their intervention can be the difference between a manageable resolution and lasting financial repercussions. 

Our experienced attorneys can provide the advice and representation needed to contest a lien or levy, speak with the IRS on your behalf, and find the best possible outcome for your situation. 

Seek Trusted Tax Advice Today

If you're facing challenges with tax liens or levies, or if you have received notices from the IRS and are unsure of how to proceed, contact us at Common Law PC today. Our dedicated team is ready to support you through every step of the process, bringing the knowledge and representation necessary to address these issues head-on. We are proud to serve clients throughout Salt Lake City, Utah, and the surrounding communities of Provo, St. George, Ogden, and Park City.