What Are Tax Liens and Levies?

What are tax liens and levies? I’m going into detail about both today.
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Welcome back to another edition of our series exploring various tax problems you can run into. Today, we’re talking about tax liens and levies.

When the IRS issues a lien, it’s a lien on all of your property. It doesn’t matter if it was recorded in your county or not. This results in your inability to sell your home, car, or anything else without paying the IRS first.

These liens can elevate to a levy on your bank account. Yes, the IRS will take money directly from your bank accounts. They’ll take money from all of them if necessary. These liens also give the IRS the right to dip into your retirement accounts.

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These liens can turn into levies quickly.

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When the IRS files a federal tax lien to the county clerk in your area, it’s a public notice that you owe the IRS and must pay them first before you sell your home or anything else. A bank levy is sent to your bank saying that they must freeze the cash in your accounts up to the amount that you owe the IRS and send it to them. The freeze can last for 21 days, then the bank must send the cash to the IRS.

Bank levies are a result of ignoring multiple notices that you have been sent by the IRS. While it might be too late already, the best chance you have at removing the levy is by reaching out to an experienced tax problem specialist like myself. We can help you negotiate the amount that you owe to the IRS. We’ve had great success in the past negotiating with them. We have years of experience negotiating with the IRS in order to get our clients the lowest bill possible. There are many solutions that we can come up with, but time is of the essence.

Once you get that notice of levy, you only have 21 days to respond before they start taking your money. If you have any questions for me about how I can help you with a problem like this, give me a call or send me an email. I look forward to hearing from you.