TAX CONTROVERSY AND RESOLUTION
Do you owe back taxes to the Internal Revenue Service ("IRS”), Franchise Tax Board ("FTB”), or any other tax collection entities? Have your bank accounts been levied, possibly a lien recorded against your property, or your wages garnished, these are just a few of the methods these government entities can use to collect what you owe.
Tax Levies are issued by the IRS or the State to banks, to clear out your account, on a given day, in an attempt to collect the full amount owed. If there is more money in the account then the levy amount, only the levy amount shall be withdrawn from the account. If the account has less than the levy amount, the entire account is frozen and withdrawn. The banks will retain the funds for 21 days and remit them to the taxing authority, unless they receive instructions from that authority to return those funds to the account. If you have more than one account, the tax authority will notify each bank on the same day, and funds may wind up frozen in more than one bank, even if one bank had sufficient funds to cover the levy amount. Be sure not to ignore correspondence from the tax authority, you may find your accounts levied when a payment arrangement could have been made.
Tax Liens are recorded against your real property, and remain on the property until the liability is paid in full. A tax lien is a public record, and will appear on your credit report, and therefore may cause you difficulty in attempting to get financing for a home or an automobile. You may be able to avoid tax liens if you have open communication with the tax authority and a payoff arrangement.
Wage Garnishment is a levy against your earnings and is collected through your employer who is instructed to withhold an amount from your paycheck, and remit it to the government. The amount deducted from each paycheck can be negotiated if open communication is established with the tax authority. The garnishment will last until the entire debt is paid or the tax authority releases the garnishment.
You don’t have to fight the government alone, we can work with you and the tax collection agency to work on a Negotiated Settlement, an Offer in Compromise, or an Installment Agreement, allowing you to pay a manageable amount over an extended period of time.