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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.

Call today for a FREE Consultation

210-342-3400

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