Tuesday, January 19, 2016

Why You Need a Tax Attorney’s Help with a Levy

Even if you have an experienced CPA helping you with your taxes, you should still cover all of your bases and be prepared in case the IRS issues a levy on your taxes by mistake. It is not a myth – sometimes there are clerical errors or mistakes that lead to unwarranted tax levies.

Nobody is exempted, as proven publicly in December 2014 when then-Republican Senate candidate Christine O’Donnell had her bank accounts frozen by mistake, due to the IRS making a serious error on her tax records with regard to real estate she sold 6 years prior. If it happened to someone as influential and famous as O’Donnell, it can happen to you as well.

What Happens If You Get a Tax Levy?

If the IRS finds that you have a tax liability, you will receive a bill. If this bill is not settled, the IRS will then send you a levy notice. Unlike a tax lien, a levy is a very serious matter because it could lead to seizure of property and wage garnishment.

If the IRS saddles you with wage garnishment, your employer will be required to take a cut out of your pay and use it to pay the IRS directly. This will continue until the liability is settled or the IRS releases the levy.

How Do You Get the IRS to Release the Levy?

The simplest answer is to pay the tax liability that resulted in the levy. However, this only applies to cases where you actually owe the IRS. If your liability is the result of a mistake on the IRS’ part or something else that you don’t understand, you need to consult with a tax lawyer.

Getting help from a qualified tax lawyer is important, even if you have already hired a CPA. An accountant might be able to help you prepare and save on your tax dues but in the event of a dispute with the IRS, you need legal representation and protection.

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