(888) 282-4697 Toll Free

(866) 525-7335  Fax

taxhelp@watax.com

Washington Tax Services has been assisting individual taxpayers and small businesses with their past due tax troubles since 1989.  Whether you have been dealing with the IRS for years and can't get caught up, or are just now falling behind and don't know where to begin - We know the tax collection system and have the experience and expertise to get you the best results possible under the law. 

The IRS has certain tools at its disposal when it comes to taking Collections Action, the most common of which are Levies, Liens and Wage Garnishments. Typically these are put into effect when the IRS has been repeatedly unable to collect a debt from a taxpayer, and when it is deemed that some "motivation" is required to get that person to fess up.  However, the IRS has the authority to implement one or all of these methods without prior warning, and so it often happens that an Intent to Levy takes the taxpayer completely by surprise.  

A Levy is a legal seizure of assets taken in order to satisfy a tax debt, and can be attached to bank accounts, securities, real property or even wages. When the IRS sets a Levy, it bars access to the affected assets by the rightful owner and transfers that authority to the IRS, unless the tax debt is repaid or the Levy is released.  If you feel you have been levied unfairly, you may request a Collection Due Process hearing within 30 days of notice in order to dispute the action.  Otherwise, having a Levy released generally requires coming to some kind of a repayment agreement with the IRS.  For instance, if you decide to submit an Offer in Compromise or Payment Plan to settle your tax debt, then Collection Action will be put on hold and the IRS will release your Levy while you work out the terms of your repayment.  It should be noted, however, that this release is only temporary, pending acceptance of your settlement offer.  Because of the time-sensitivity of the matter, if you have received a Notice of Intent to Levy from the IRS, you should contact Washington Tax Services right away so that we can respond to their threat promptly and prevent Seizure.

Although it is not an outright seizure like a Levy, a Lien can be a serious hassle because it essentially gives the Government a legal claim to your property as security or payment for your tax debt. You can think of a Lien as a tool for 'staking out' the assets of a tax debtor.  By filing a Notice of Federal Tax Lien, the IRS is publicly telling the taxpayer's creditors that it has a claim on all of their property, including property acquired after the Lien has been filed.  A Federal Tax Lien makes getting a loan or a new credit card or signing a lease nearly impossible because of the damage it does to your credit rating – even selling an asset in order to pay off the debt would not be possible because technically it belongs to the IRS!  

It is very difficult to get a Federal Tax Lien released without paying off the tax debt in full, and indeed, the total amount of the Lien remains a matter of public record until the debt is completely paid.  If you plan on giving up a certain piece of property – for instance, selling your home – you may apply for a Certificate of Discharge for that item.  If the application is accepted, then you are clear to sell that property. You will, of course, have to pay off the debt with the proceeds.

In some cases, a Federal Tax Lien can be made secondary to another obligation if you show the IRS that you have another encumbrance (such as a mortgage or court settlement, etc.) which takes precedence over the Lien.  This is called Lien Subordination, and can help provide the elbow-room necessary to obtain some form of private financing.  Keep in mind that accepting an Application for Lien Subordination is a business decision on the part of the IRS. They will only do so if you can demonstrate that Subordination will allow them to collect the tax owed, or that the amount the United States could realize will ultimately increase and that collection will be made easier for them. Basically, you need to show “What’s in it for the Government.”

Any application you submit for Release or Subordination of a Federal Tax Lien needs to be quite in-depth and must also be accompanied by any documentation that might help your case.  Remember, proving that the Release is in the Government’s best interest is the key to acceptance.  If you have received a Notice of Federal Tax Lien and have concerns about handling it all on your own, than you should call Washington Tax Services. We've had tremendous success over the years in getting Liens released, often within a matter of days.  We will explain the procedure, take care of the paperwork, and guide you through the whole mess to get you the relief you deserve.

Another common Collections tool of the IRS is the Wage Garnishment (also called a Wage Levy).  A Wage Garnishment follows the same concept as a Levy, but in this case the taxpayer's employer is notified and instructed to withhold a certain amount of that person's weekly wages and pay it instead directly to the IRS.  It should be noted that the employer may not "refuse" to do so.  Garnishment continues until the entire tax debt is paid off.  

The problem with this scenario is that the IRS rarely, if ever, takes into account the individual's specific situation before levying wages.  Therefore it frequently occurs that the affected taxpayer is left with only a meager portion of their pay as take-home income, which usually ends up creating a financial hardship and endangering the well-being of their household.  Fortunately though, the IRS is legally restricted from imposing such hardship.

The best way to get a Wage Garnishment removed is to enter into some kind of voluntary repayment agreement with the IRS.  For instance, if you plan on submitting an Offer in Compromise or setting up a Payment Plan, then we can request a Hardship Deferment which will halt IRS Collections, including your Wage Garnishment.  Keep in mind, however, that this is only temporary - although you will no longer be making forced payments, your tax debt will still remain and continue to accrue interest until a settlement is reached.

If you're experiencing financial difficulties due to a Wage Garnishment, then you shouldn't wait for another artificially lightened paycheck to arrive and be quickly spent.  Call Washington Tax Services today, and we will immediately take action to stop IRS Collections and start a settlement procedure relevant to your circumstances.

For More information on how you can stop IRS Collections Action, please call today: