IRS LEVY AND LIENS

IRS Levies and IRS Liens Tampa ,Unpaid tax debt or unfiled returns can eventually lead to financial difficulties. Ignoring the attempts of the IRS to reach you will not make it go away. After multiple efforts to collect the debt, the IRS will act.

Some Steps IRS Takes to Penalize You:

Penalties and Interest

• Penalties apply for failures to file income tax returns or information returns, or for filing incorrect returns.
• Penalties and interest will be applied for certain types of errors on tax returns and may be substantial.
• In some situation this may result in forfeiture of your property. Adding penalties, fines, and interest to tax debt is meant, in part, to serve as motivation to pay the tax debt quickly.

Generally, interest accrues on any unpaid taxes from the due date of the return until payment is made in full. The interest rate is determined quarterly. Interest compounds daily.

In addition, if you file a return but don’t pay all tax owed on time, you’ll generally have to pay a late payment penalty.

The failure-to-pay penalty is one-half of one percent for each month, or part of a month, up to a maximum of 25%, of the amount of tax that remains unpaid from the due date of the return until the tax is paid in full

Tax Liens

• A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt.
• The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
• Liens create an increased priority for the IRS to receive the taxpayer funds until the tax debt is paid, or the lien is removed. I

How a Lien Affects You

Assets 

A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien.

Credit 

Once the IRS files a Notice of Federal Tax Lien, it may limit your ability to get credit.

Business 

The lien attaches to all business property and to all rights to business property, including accounts receivable.

Bankruptcy

If you file for bankruptcy, your tax debt, lien, and Notice of Federal Tax Lien may continue after the bankruptcy.

Tax Levy

 A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.

IRS levies allow the government to claim and resell anything of value you own, such as vehicles, property, and bank accounts, to satisfy unpaid taxes.

A levy also allows the IRS to garnish wages, vendor payments, pensions, and Social Security benefits.

Dealing with the IRS doesn’t have to be a painful process. It’s important to address your situation early on to avoid getting worse.

We help our clients get out of these types of situations every day. If you’ve received an IRS Notice of Levy, contact us immediately. We can negotiate a solution on your behalf and get you the best outcome possible.