When a person or a business has an unresolved tax debt, the IRS will not hesitate to take action. Many are surprised how quickly a tax controversy can escalate into IRS collections that include potential wage garnishment, bank levy, or asset levy.
Get Relief From IRS Collections
At Wiggam Law, our team of experienced tax attorneys are dedicated to protecting our clients’ interests and receiving tax relief as quickly and efficiently as possible.
Wage Garnishment
If you are delinquent on your taxes, the IRS can garnish a portion of your wages. The IRS only has to issue a single levy to be able to seize your salary, commission, or other types of income such as dividends or payments on promissory notes. Even worse, the IRS can keep taking money from your paycheck every week until the back taxes and penalties are paid.
Bank Levy
A levy on your bank account is one of the most common IRS tactics for seeking delinquent funds. If you’re late on your taxes, an IRS bank levy will seize all of the funds in your bank account up to the amount of back taxes, penalties and interest you owe.
Asset Levy & Seizure
The IRS can also levy and seize assets as compensation for unpaid federal tax debt. This can include houses, vehicles, jewelry, artwork, 401(k) accounts, and other valuable personal property. It can be extremely difficult to get your property back once it has been claimed by federal or state taxing authorities.
Can I negotiate my tax debt with the IRS?
Yes, there are several options for negotiating or settling tax debt with the IRS, including Offers in Compromise, installment agreements, and temporary deferrals based on financial hardship. The IRS will consider your specific circumstances and the facts surrounding your case.
What should I do if I can’t pay my tax debt in full?
If you can’t pay your tax debt in full, you should file your return and pay as much as you can by the due date. Additionally, you may qualify for a partial pay installment agreement, currently not collectible status or an Offer in Compromise, which allows you to settle for less than the full amount. A tax attorney can help determine the best approach for your situation.
What happens if I ignore IRS collection notices?
Ignoring IRS collection notices can lead to serious consequences, such as additional penalties, interest, and aggressive collection actions like asset seizure or revoking a passort. It’s critical to address any correspondence from the IRS immediately. A tax attorney can help determine the best approach for your situation.
Can the IRS take my property if I owe back taxes?
Yes, the IRS can seize property, including homes, vehicles, wages, and other assets, to satisfy unpaid taxes. However, there are legal processes in place, and you may be able to stop or appeal the action with the help of a tax attorney.
Is there a way to reduce or eliminate IRS penalties and interest on tax debt?
In some cases, the IRS may agree to reduce or eliminate penalties and interest through penalty abatement programs or when negotiating a settlement. A tax attorney can review your case and assist with these requests.
How long does the IRS have to collect tax debt?
Generally, the IRS has 10 years from the date the tax was assessed to collect unpaid taxes, but this time frame can be extended or suspended in certain situations, such as filing for bankruptcy or requesting an Offer in Compromise.
How can a tax attorney help with IRS collections?
A tax attorney can negotiate directly with the IRS on your behalf, explore settlement options, prevent aggressive collection actions, and ensure your rights are protected throughout the process.
Schedule a Consultation With Our Attorneys in Atlanta, GA
If you are dealing with IRS or state debt collections and are at risk of wage garnishment, bank levy, or asset seizure, it is best to act quickly and hire an experienced tax attorney as soon as possible.
Our team will develop a proactive solution, with the goal of stopping the wage garnishment or levy or having it released as soon as possible. We are dedicated to protecting your interests and want to help keep your money where it belongs – with you.
Contact Wiggam Law to talk with an experienced tax lawyer.
IRS Collections Success Story
“…we felt a sense of relief that we were getting the expert help we urgently needed.”
“We met Jason in December 2013, upon referral of Ronald Blase’, a professor at the Georgia State Tax Clinic who felt we needed an outstanding tax attorney to handle our highly complicated tax issue. We were on the brink of having our house seized and wages garnished due to a very sizable tax liability. We were in a desperate situation.
From the first time we met and discussed our case with Jason, we felt a sense of relief that we were getting the expert help we urgently needed. He presented our available options in handling the liability, including bankruptcy, and explained the details and time frame involved for each option. In hearing Jason’s knowledge and expertise of tax law and regulations, we came to realize that everything was going to be okay. I must mention that due to our dire financial situation, Jason was also willing to work with us on paying his fee.
It has been a long road; bankruptcy and foreclosure of our first home are hard pills to swallow. But Jason has been there for us every step of the way. In fact, not only is he an expert tax attorney, he is a very caring person. We have always felt that Jason really cares about our situation and more importantly, cares about us. He has done whatever he can to assist; he is diligent with returning our emails and telephone calls and tirelessly works for us. In fact, through Jason’s efforts, we had the more than $800,000 federal tax liability discharged in November 2016 through Chapter 7 bankruptcy. Just recently, in February 2018, Jason quickly had an IRS wage garnishment canceled. Further, Jason is continuing to work tirelessly for us in handling our current state tax liability ($90,000+) through an “offer in compromise”. We are confident in knowing that it will be resolved in our favor. What an absolute blessing Jason has been to us. We truly thank God for him.”
-S & W Johnston