A federal tax lien doesn’t immediately take any of your property, which may make it seem less intimidating than other IRS collection actions. However, the federal tax lien has many attributes that make it a powerful collection method: It is a blanket lien, meaning it...
Month: January 2019
Can a Tax Levy Be Reversed?
The best way to avoid an IRS levy is to stop it before it starts. You’ll get several notices from the IRS before they can levy your assets. The notice should absolutely get your attention is a Final Notice of Intent to Levy and Notice of Your Right to Hearing, also...
How Much Can an IRS Tax Levy Take?
The IRS can generally seek collection of the full amount you owe in back taxes, penalties, and interest by levying your property. This could mean that your entire bank account is drained or that other assets are seized and sold to pay off your tax debt. There are some...
Will the Government Shutdown Impact Your Taxes?
The government shutdown is not expected to impact the ability of the IRS to process tax returns or transmit tax refunds. You should plan to file your tax return as you usually would. Some services may not be offered or may have limited staff, such as the IRS customer...
Tax Levy on Social Security Benefits
The IRS has powers that many ordinary creditors don’t have. One of those powers is the ability to levy your Social Security benefits if you have delinquent tax debt. This is done as part of the Federal Payment Levy Program (FPLP). How Much Can the IRS Take? The IRS...
How to Stop a Tax Levy on Your Paycheck
You can generally stop an IRS levy on your paycheck before it starts by paying your full balance due or negotiating a payment plan. If the IRS is already threatening to levy your wages, you may need to request a Collection Due Process (CDP) hearing. Collection Due...
How Long Does an IRS Wage Levy Last?
Wage levies are continuous, unlike most bank account levies and most other IRS seizures. An IRS wage garnishment will be ongoing until one of the following events takes place: Your full balance is paid. You make other payment arrangements with the IRS. The levy is...
Can Tax Debt Be Inherited?
Debts generally can’t be inherited, but they can reduce the potential assets received by the deceased person’s heirs. If an estate owes more than the fair market value of its assets, the heirs could end up with nothing. When someone passes away with tax debt, the IRS...
Can You Get a Home Loan With Tax Debt?
It may be possible to get a home loan with tax debt, but it can also make the process more difficult. The exact requirements you’ll need to meet will depend on the type of loan you’re seeking and your specific financial circumstances. Getting Your Tax Debt Under...
How Does Tax Debt Relief Work?
The IRS and state tax authorities offer tax debt relief for a simple reason—many taxpayers need help paying off their tax debt. Rather than spend more government resources trying to collect back taxes from these people, tax debt relief options exist to provide payment...