Understanding IRS Liens and Levies

Understanding IRS Tax Liens and Levies

Securing Tax Debts with Legal Claims

An IRS lien is a formidable legal claim that the IRS can impose on a taxpayer’s property as collateral for unpaid taxes. 

This action grants the IRS a legal right to the taxpayer's property, enabling them to seize and sell it to settle the tax debt.

IRS Levies: Seizing Assets to Satisfy Tax Debts

An IRS levy is a legal process through which the IRS seizes a taxpayer’s assets to fulfill a tax debt. This can encompass seizing wages, bank account funds, investment assets, and various other types of property.
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FAQs

A federal tax lien is the government's legal claim against your property when you neglect or fail to pay a tax debt.
A lien can affect your credit, ability to sell or refinance property, and may attach to future assets acquired during the duration of the lien.
A levy is the legal seizure of your property to satisfy a tax debt.

The IRS can levy property that you hold (like your car, boat, or house), or your rights to property (like wages, retirement accounts, bank accounts, rental income, accounts receivables, or the cash loan value of your life insurance).

The best way to avoid a lien or levy is to file and pay all your taxes in full and on time.
Yes, you have the right to appeal if you disagree with an IRS decision to place a lien or levy on your property.
Paying your tax debt in full is the quickest way to get rid of a lien or levy. In some cases, the IRS may also withdraw a lien if it will help you pay your taxes or if it's in the best interest of both you and the government.
Tax liens no longer appear on your credit reports, but levies may still impact your credit.

The IRS can levy property that you hold (like your car, boat, or house), or your rights to property (like wages, retirement accounts, bank accounts, rental income, accounts receivables, or the cash loan value of your life insurance).

Important Terms To Know

Consequences of IRS Tax Liens and Levies

Both IRS liens and levies are serious legal measures with significant implications for taxpayers. Receiving notice of an IRS lien or levy necessitates immediate action to address and resolve the tax debt. Seeking assistance from a tax professional or attorney is advisable to navigate the process and protect your rights.

Responding to IRS Notices: A 30-Day Window

When the IRS signals its intent to levy and seize your assets, you have a crucial 30-day window to challenge the levy through tax resolution or by settling the full amount. 

While preventing levies is ideal, if one has already been imposed, professional assistance becomes imperative.

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Expert Guidance at IRSProb.com

At IRSProb.com, we specialize in guiding you through the intricacies of negotiating a release of the levy with the IRS. Our strategies are tailored to the specifics of your case, providing comprehensive assistance to navigate these challenging situations effectively.

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