Tax Levy Attorney – Summerville, SC
Do you need help getting out from under a tax levy? Let us work for you to get your property back!
If you are facing a tax levy on your property you may be feeling overwhelmed, hopeless, and confused. The types of action the IRS and State can take when you owe them tax money are downright intimidating.
How can they expect you to pay back your debt when you don’t even receive your full paycheck each month?
You don’t have to feel this way! There is a solution to your problem, and a tax levy attorney can help you find it.
What is the definition of a “tax levy?”
A levy is the actual seizure of your assets to satisfy a debt that is owed. A tax levy involves the taking of your property to cover tax debt owed by a taxpayer. The property in this scenario can include paychecks, bank accounts, vehicles, boats, real estate, rental payments, accounts receivable, social security, tax refunds and much more.
Levies are different from liens. A lien occurs when property is claimed in order to protect a party that is owed money in the event that the debt is not paid.
If you fail to pay your taxes or make some sort of approved plan to settle your debt, the IRS/State can issue a levy against you!
How to Avoid a Tax Levy:
There are so many things you can do to avoid a tax levy. The IRS and State do not take this action lightly, but they will pursue it if they feel it is necessary.
Here are some of the ways you can avoid a levy:
- File your tax return on time.
- Pay your taxes when they are due.
- Request an extension if you need more time to file.
- Don’t ignore billing notices! If you can’t pay what you owe, pay what you can and work with a Tax Debt attorney to get a payment plan or settlement of your debt.
Different Types of Levies:
Wage Levy/Wage Garnishment
Wage levy and wage garnishment are the same thing – they both are a levy on your paycheck. This will continue until the levy is released, the full amount due is paid, or you come to some sort of agreement with the IRS/State to pay back your debt.
For IRS debt, part of your paycheck may be exempt, meaning that amount would go straight to you instead of the IRS’s pocket. There are certain deductions and exemptions that apply to this rule that a tax levy lawyer can help you with.
For State of South Carolina debt, the standard garnishment is 25% of your wages.
Levy on Financial Accounts
It sounds crazy, but the IRS or State absolutely does have the authority to seize any and all money that is in your bank account to satisfy your debt. The date the levy is received your accounts will be frozen. Usually the levy will not apply to funds added to your account after the date of the levy.
If your bank account is levied in error and is assessed levy fees by your bank, you can get your money back! A tax levy attorney can go over the rules with you and help you through this process.
Levy on Property
The IRS or State can also seize any property that you own to satisfy your debt. This can include houses, boats, vehicles, and more. A levy of your primary residence requires a little more work on the part of the tax authority. If it happens, the tax authority has to be able to prove their case that you have an unsatisfied debt, the levy was appropriately pursued, and there isn’t a reasonable alternative to collect.
Levy on Social Security Benefits
Another surprising action the IRS can take is to go after your Social Security benefits. A substantial of each payment can be levied until your entire debt is repaid.
Other Types of Levies
The IRS and State can also levy dividends, retirement accounts, rental income, commissions, and accounts receivable. Please keep in mind that this is not an exhaustive list.
How can I get my tax levy released?
There is a solution to this terrible problem. All of these solutions involve some sort of action on your part! Ignoring the problem is NOT a solution. An experienced tax levy lawyer can go through the options and find a solution that fits your case.
Here are a few ways to get a tax levy lifted:
- Pay the amount of your debt.
- The statutory period for collection expired before the levy was issued.
- Enter into an Installment Agreement.
- Submit an Offer in Compromise.
- Prove financial hardship. This means that the levy is causing you immediate economic difficulty to the extent that you are unable to afford basic living expenses.
Please remember that the release of a levy does not make your debt go away! Even if you get the levy lifted, you need a solution to your tax debt problem.
Can a tax levy attorney help?
Yes! A tax levy lawyer knows the ins and outs of the tax code and system. They know how the process works and what to expect. They know the options and what solution may fit your case. If you are facing a tax levy, don’t hesitate. Contact an experienced tax attorney as soon as possible to discuss your case.
Are you suffering from a tax levy due from debt to the IRS or State of South Carolina?
If you need a solution to your problem, give us a call. We can walk you through your situation and discuss the options available to you. You are not alone! We are here to help. Dial 843-771-4791 and ask for SC tax attorney John Witherspoon.
REMEMBER…ALL INITIAL CONSULTATIONS ARE FREE!