Tax Problems: Dealing with the IRS and State

  • Stop Garnishments
  • Eliminate the Fear of Seizure
  • Handle Your Tax Problems
  • Reclaim Your Life!

IRS threats, State or Federal Liens burdens, worrisome phone calls at home and work; worries about garnishments or tax liens–these are the things of nightmares. Individuals who face these problems tell us that they have trouble sleeping at night, they are stressed, they feel helpless.

We can help. We have the experience, knowledge and skill necessary to deal with the IRS so that you don’t have to feel under constant threat of harassment and potential loss.

Owing Back Taxes

It is not difficult to fall behind in what you owe for taxes. However, it is important to understand the chain of events that begin when you fall behind.Any unpaid balance to the IRS is subject to interest that will compound daily and to a monthly late payment penalty. When large amounts of tax debt have been owed for several years it is possible that the penalties may equal or exceed the actual amount of taxes owed.

The IRS and state may consider monies owed for the following reasons:

  • You filed your returns but did not pay in full the amount owed
  • You filed your returns but the IRS or state has reason to believe that you under-reported the amount owing
  • You have not filed your returns and so the IRS or state files for you, assuming the amount earned without any of the deductions that you may be legally entitled to
  • You have gained valuable assets that you have not reported
  • As an employer, you collected payroll taxes (also known as trust fund taxes) from your employees, but failed to forward these sums to the IRS or state
IRS and State Tax Liens and Warrants

IRS and State Tax Liens and Warrants

Initially, the taxing authority may simply send you a letter demanding payment of the amount they consider due and owing. However, sooner or later they may take stronger actions to attempt to enforce payment of the amounts they deem owing. These stronger actions fall into two categories as explained below.

Liens and Levies

Liens and levies are two separate actions that the IRS and other government taxing authorities may take in attempting to collect taxes they believe are owed.

In general, a lien is the right to property belonging to a person to secure payment of a debt owed by that person. Examples would be a mortgage on a house, or a car loan, where the house or the car act as security for the loan, and can be taken if the loan isn’t paid.

A tax lien is the government’s claim against your property when you fail to pay a tax debt. The lien is used to protect the government’s interest in any or all of your property, including real estate you may own, personal property, and financial assets, The lien attaches to presently owned property, rights to receive property, and to any future assets acquired while the lien is in place.

A levy is different. When the IRS or state places a levy on your assets, they actually take that property to pay the tax debt. An example would be a levy placed on your bank account where funds from your bank account are taken to satisfy your tax debt,or a levy placed on real estate where that real estate is seized and sold to satisfy the tax debt. A wage garnishment is also a levy.

If you don’t pay or make payment arrangements to settle your tax debt, the IRS can levy, seize, and sell any type of real or personal property that you own or have an interest in.” The term “interest,” as used here, means any legal right of ownership in some property.

However, there are things you can do about it.

Find out what your options are...
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