When you have unpaid taxes, you are most likely living under a dark cloud where you are waiting for something financially terrible to happen. You know it’s just a matter of time before the IRS takes action against you in regards to your tax debt. Every time you pick up the mail you are terrified there is going to be a notice of garnishment on your wages, or you are going to get slapped with an IRS levy on your bank account. There is no mistaking that this is unlikely to happen if you are not taking some type of action to deal with your tax predicament. Once you receive that notice of federal tax lien you can no longer stall the tax department or just hope that you can hang on for a few months hoping your financial situation will change.
Often tax payers who are in default of their taxes are semi knowledgeable about what actions the tax department can take against them. They will try to take steps to protect what little money or assets they have to ward off seizures of properties, or an IRS levy on bank accounts. Most often these attempts are futile because the tax payer doesn’t fully understand the authority that the IRS has. Another problem it can create is, that if the Tax Department becomes aware of these attempts they may view it as fraudulent actions to ward off having to pay the tax debt owed. This can lead to some very serious legal consequences.
The procedure for an IRS levy on a bank account only begins after you have been properly notified of your tax debt and you have not taken any type of action to clear the debt. The IRS will notify your Financial Institution that they have first claims on your funds in any Bank account that you are affiliated with by means of your Social Security Number. The funds in any of these accounts will be untouchable by you, and will be held in trust for 21 days. This is the amount of time you have to show good cause as to why these funds should not be applied against your outstanding tax bill.
You have no time to waste, and do not consider this as a bluff on behalf of the IRS. You should not just assume that giving any type of excuse as to why you need these funds will be sufficient enough to void the IRS levy. If you feel that you simply cannot afford to let the IRS use these funds to reduce or eliminate your tax bill, then it is imperative that you seek out professional help by way of a tax attorney immediately. You should do this even before having any further contact with the IRS. These tax experts will know immediately where you stand in respect of being able to stop the levy based on your circumstances. Providing the right answers to the IRS is imperative at this time. There may be issues about your circumstances that you may not even be aware of that could be beneficial in helping to ward off the levy. Once this immediate problem has been dealt with then you can further discuss with your chosen tax attorney as to what is available to you, to help you get this tax burden off your shoulders.
All too often tax payers that are delinquent just don’t realize that there may be a lot of options available to them in respect to their tax bill. They want to pay the bill but just don’t have the ways or means to do it so they begin to avoid their tax problem which just creates more stress. A consultation with an attorney who handles tax matters can certainly make life a whole lot easier for you. Just knowing that you can have a trusted resource such as a tax expert to turn to helps a great deal, and makes your tax situation a whole lot less hopeless.
Our New York tax law firm offices are located in New York State but we are able to help you in any state across the country. We can work with you no matter where you live. Mr. Hart is licensed to deal with the IRS in every state in the entire country.