What’s the difference between a levy and a lien?
A lien is a legal claim against your property to secure payment of your tax debt. A levy is the actual legal seizure of your property to satisfy a tax debt.
What happens when I owe back taxes? Can I just ignore the IRS?
You can ignore the IRS if you have no income, no assets, no interest in any property, no chance of ever coming into money or property, nor do you have any worries about criminal charges.
Once a tax debt is assessed the IRS will begin sending you their “notice stream” of collections letters. They include:
- CP501 – You have a balance due on one of your tax accounts
- CP503 – The IRS has not heard from you and you still have an unpaid balance on one of your tax accounts
- CP504 – You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will levy your state income tax refund and apply it to pay the amount you owe. At this point, the IRS can intercept your state refunds.
- CP90 – Final Notice of Intent to Levy and Notice of Your right to a Hearing (sometimes this will be sent as an LT11)
I started receiving collections letters from the IRS. What should I do?
If you are receiving these letters, it means you owe the IRS back taxes.
If you do nothing, the IRS will contact your employer to implement an IRS wage garnishment levy, and they are required by law to withhold money from your paycheck and send it to the IRS to pay your back taxes. In addition, they can take hold of the lump sums of money in your bank accounts.
We can help if:
- You receive any of the notice stream collection letters
- You get a letter from your bank telling you that your account was just frozen by the IRS
- Your wages are levied and the IRS is not giving you enough to live on
- You receive income from a 1099 and the the IRS sent levies to your customers and other people that have paid you in the past
- The IRS has threatened to take your house or business. They will really only do this if you give them no other option…so we give them another option
- You need representation at your Collection Due Process hearing
- You received the Final Notice of Intent to Levy or Notice of a Federal Tax Lien and missed the 30 day deadline
- You missed the 1-year deadline to file an Equivalence hearing
If you are receiving notices, contact us as soon as possible. We can stop the process before it gets to the point where you are levied, or may be able to undo the damage of a lien. If you've already been levied, we can help. While having a lien withdrawn is possible, it is not easy. We know who to contact and what to say to get the levies on your bank accounts released and the IRS wage garnishments to stop. We then work to determine the proper alternative resolution for your case.
We have a proven track record of success in helping thousands of taxpayers dig out of their tax troubles. With over 10 years of experience, we've developed a process. It works.
Contact us to set up your free, confidential consultation. Call us at 888-727-8796 or email info@irsmedic.com.
