The Tools the IRS Uses to Get Its Money
When you owe money to the IRS, it will try any means necessary to collect a debt. After slapping you with a bunch of penalties, if you still don’t make an arrangement to pay what you owe, the IRS will start using various tools to collect tax debt. These tools include using levies and liens on your property.
Although you might not think it, the IRS is legally able to seize your bank accounts and your property in order to pay the money you owe. It can take away your home, your car, and your bank accounts without the need of getting legal permission from the courts. If the IRS has used any of its tax collection tools on you, don’t ignore the problem. Instead, contact our Houston tax levies and liens attorneys at Pro Tax Councel.
The Difference Between a Lien and a Levy
A tax lien is a lien the IRS uses on your property to secure a tax debt. In other words, the IRS will have a legal claim to your property,
which includes your home and your car, to use as payment or security for your debt. What happens is the lien will be put on your credit history, causing a serious blemish that will hurt your chances in securing any type of credit or loans.
Where a tax lien is a claim to your property, a tax levy will actually take your property away. This means that your bank accounts could now be in the possession of the IRS and it can empty out your life savings in order to pay the debt.
How to Prevent a Lien or a Levy
Before taking away your property, the IRS must notify you ahead of time. If you remain uncooperative or try to ignore the matter, expect this type of action to happen. But there are are ways to prevent liens and levies from happen. By hiring our experienced tax attorneys, we will be able to negotiate with the IRS on your behalf to reach a compromise on your debt. We can help you arrange a reasonable payment plan or reach a settlement that you can work with.
If you are at risk of a tax lien or levy, don’t wait. Contact our Houston-based IRS tax attorneys today for a free consultation.