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Archive for the ‘Tax Lien’ Category

Internal Revenue Service Issues: Tax Levies vs. Tax Liens Part Two

August 29th, 2014 at 8:58 am

tax levyNeither a tax lien nor a tax levy from the Internal Revenue Service is a positive situation, and can certainly have dire consequences for you as a consumer and a taxpayer. A lien simply assigns the government’s right to your assets before any private creditor and is normally a result of unpaid income taxes and can be more than an inconvenience for anyone. In contrast, a levy is much more serious. Fortunately, there are remedies for both scenarios. A tax lien can result in high bills owed, a public filing of the tax lien, as well as attaching the label to every type of property you own.

Although selling the property can certainly help the situation in some cases, it is important to remember that all proceeds will go towards paying the lien, often leaving you in even more hardships. There are other ways to get rid of a tax lien, however, and use of a Texas attorney can make all the difference in how your case is resolved.

Consider the following options when a lien is placed on you by the Internal Revenue Service to help your case:

  • Paying off the overdue debt: Although most often easier said than done, should you have the means to do so, this is your best option. All tax liens will be removed within 30 days of the resolved debt, although this must be done in full;
  • Discharge of property: This option can make certain property that you owe exempt from the lien, and taking its equity out of the hands of the IRS and the federal government. While this will not always apply, it may help you save your residence or vehicle;
  • Withdrawal of the lien: While you are still liable to pay the full amount you owe the IRS, a withdrawal of the lien assures all other creditors that the government is not longer competing for your assets. Certain criteria must be met, such as ongoing compliance with payment plans and tax code.

A tax levy can be more complex, although there are ways to get this removed as well. The following is a short list of ways an experienced attorney can cause the least amount of hardship on you possible by getting a levy removed:

  • If you filed for bankruptcy before the levy notice was issued;
  • Proving the levy will cause undue economic hardship;
  • You did not have adequate opportunity to dispute the claim;
  • A desire to set up a payment plan of some sort;

These tax levies are no joking matter and can result in you losing your credit, property, as well as significant financial losses. A Texas bankruptcy lawyer with experience dealing with the IRS can not only help you protect your assets, but also your livelihood. Contact The Law Offices of Chance M. McGhee today for a free initial consultation regarding your economic hardships.

Internal Revenue Service Issues: Tax Levies vs. Tax Liens Part One

August 13th, 2014 at 8:35 am

tax lienIt is not uncommon for a person to find themselves behind on their income taxes, and many across Texas and the rest of the country suffer from this same problem. Everyone has seen the proverbial person walking through the door of his or her accountant’s office with years worth of paperwork in hand. However, this only generally occurs when they receive notices from the Internal Revenue Service or simply have all of their money frozen.

In many cases, filing for bankruptcy can assist you in your financial predicament with the government. First, you should consult a Texas bankruptcy attorney to assess what is really going on and to find the best way to remedy the problem. In this way, it is critical to understand the key differences between a tax levy and a tax lien.

Consider the following deviations between a tax levy and a lien, and why one is more critical than the other to your short and long term financial health:

  • The IRS is not seizing your property when a lien is imposed: A tax lien only secures the governments interest in your property should your debt become a liability. This does not mean it is not a big deal, however; all levies are reported to all creditors, and becomes public on your credit scores, making it much more difficult to obtain a loan;
  • Tax liens can turn serious very quickly: While your property is not seized during a lien, a levy works completely differently. In this case, the government is, in fact, taking your property to settle a passed debt–often the result of a grossly overdue lien.
  • Almost nothing is safe during a levy: If you are subject to a tax levy by the IRS, they can seize almost any asset you own to repay the debt. This includes your home, car, wages, and even bank and retirement accounts. This extends to accounts that are in someone else’s name as well; including things such as life insurance and joint accounts.

If you have received a notice from the Internal Revenue Service regarding unpaid income taxes of your own, it is imperative that you act as soon as possible. A professional and experienced Texas bankruptcy attorney can assist you by presenting you with all the information, and advising you how to move from there.

Contact The Law Offices of Chance M. McGhee today for a free consultation and personal legal assistance from a San Antonio bankruptcy attorney on how to move forward in your IRS tax situation for the best possible outcome.

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