Understanding IRS Tax Lien, IRS Tax Levy, and IRS Wage Garnishments

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IRS Notice of Lien, Levy, & Garnishments

According to the United States Government Accountability Office, 21 percent of Americans ended up owing money to the IRS this year instead of getting a refund. By now, those people should have paid that debt. What if you are part of that 21 percent and haven't paid yet? The reality is the IRS has the authority to use collection tactics to get their money and these tactics such as IRS wage garnishment may come as just as much of a surprise as the original tax bill. Get a better understanding of two types from our IRS Tax Lien v. IRS Tax Levy blog!

Collection Strategies

The IRS uses these three main methods of collections.

  • IRS tax levy is a one-time seizure of an asset, including physical property, bank accounts, inventory, and sometimes your wages. The key here is one-time. Unless we're talking about wages, a levy gives the IRS the authority to perform a seizure once. For example, if they seize your bank account, they get what's in it on that day. They are not able to seize future deposits.
  • IRS wage garnishment in our experience is a type of levy when the IRS seizes your wages. It is not one-time. In fact, it is a recurring event that happens every time you get paid until the tax bill is paid in full. The IRS provides your employer an exemption amount that you will continue to receive as pay. All monies over the exemption amount goes to the IRS.
  • The IRS can also issue a tax lien, which is technically not a collection strategy, although it does help get their money. Here's how it works together with an IRS wage garnishment in Denver. When you file a tax return that indicates you owe money, the IRS automatically issues a "statutory lien." How does this affect you? In contrast with a tax levy in Denver, first, it shows on your credit report and makes it difficult for you to get credit. Secondly, it attaches to your personal and real property. That means if you own a home, you cannot sell it or take out a loan against it until the lien is satisfied.

Get Help to Stop an IRS Levy

You do have options when it comes to the IRS's collection strategies. Protect yourself from IRS wage garnishment and get IRS tax lien help and IRS tax levy help from Advanced Tax Solution in Denver, we have over 50 years of combined experience providing tax relief. Talk to our experts about how to stop a levy or garnishment, set up a realistic payment plan or get your lien completely released through the IRS's Fresh Start or Offer in Compromise programs. We know how stressful working with the IRS can be and that's why we offer expert services at a reasonable price. Whether you need IRS tax lien help, IRS tax levy help, or IRS wage garnishment help, trust Advanced Tax Solutions to take care of you!

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