Tax relief attorneys help clients negotiate with the IRS with the goal of either reducing their tax debt or making it more manageable. You may be able to arrange an offer in compromise, where the IRS settles your tax debt for a reduced amount. Or, you may be eligible for an installment agreement or payment plan. Additionally, tax relief lawyers can help you with the negative ramifications of unpaid taxes, including tax liens and levies.
IRS Tax Lien Removal
Tax liens assert a legal claim to all of your property — including future acquisitions. A lien does not actually take your property. Instead, it secures the government’s claim against your property. It can be very difficult to sell or refinance a property on which a lien has been asserted. Moreover, if the property is sold, the IRS tax lien amount must be paid from the proceeds. In addition to the lien itself, the IRS will file a public Notice of Federal Tax Lien. This notice will appear on credit checks — and can seriously impact your credit score and ability to get a loan.
If you have been notified of an IRS tax lien, contact qualified tax relief attorneys immediately. A skilled tax lawyer may be able to get the lien released or get certain assets removed from its scope. Successful tax lien removal may involve a:
- Discharge: removing specific property from the lien,
- Release: completely extinguishing the lien,
- Subordination: reducing the lien’s priority (which may allow you to obtain a loan), and
- Withdrawal: eliminating the lien’s public notice.
And, under the Fresh Start Program, you may be eligible for withdrawal of the lien if you have a direct debit installment plan and meet other criteria.
Once you fully pay or settle your tax debt, the IRS should remove its liens within 30 days. Occasionally, people discover old liens that were not removed. If you need help determining whether you owe taxes or are eligible for the release of a tax lien, contact a lawyer. It can be difficult to handle tax lien removal on your own. The process typically includes assessing your finances, tax burden, and legal rights. Experienced tax relief attorneys can evaluate your situation and eligibility and create a customized solution.
Contesting an IRS Tax Levy
A tax levy allows the IRS to take your property and is their last resort. Once you receive a Final Notice of Intent to Levy, you only have 30 days to either pay the taxes or resolve the dispute. Do not ignore this Final Notice. Once 30 days have passed, the IRS can begin seizing your property without any further warning.
However, tax levies can be released under certain circumstances, including:
- Evidence of severe economic hardship (you cannot pay for basic living expenses),
- Expiration of the statute of limitations before the levy was issued,
- Full payment of your tax debt, interest, and penalties,
- Releasing the levy would allow you to obtain a loan and pay your tax debt,
- You entered into an IRS installment agreement that prohibits levies,
- The value of the levied property greatly exceeds your tax debt and a portion of the property can be released without hindering collection.
You must submit evidence supporting your claims. Tax relief attorneys at the Sodowsky Law Firm can help you build a compelling argument for the removal of a levy. This typically includes a thorough analysis of your finances, tax records, and legal issues.
We may be able to negotiate a temporary freeze on your tax levy. However, even if the IRS releases your levy, you still must pay or resolve your tax debt. We can also help you obtain an installment agreement or offer in compromise — reducing or spreading your tax debt into monthly payments.
Speak With Experienced Tax Relief Attorneys at the Sodowsky Law Firm
Hiring experienced tax relief attorneys can help avoid or resolve your tax debt. We work with our clients to create realistic and manageable solutions, handling both IRS and Virginia tax issues. Contact the Sodowsky Law Firm for more information.