Stopping Enforced Collection Action: Liens and Levies

Getting Rid Of Liens And Levies

The Bankruptcy and Tax Law Center and its attorneys use the power of the law to protect you and undo the harmful consequences of levies against your bank accounts, paycheck, and other property.

Our tax attorneys stop aggressive IRS or State collection action and work out a reasonable solution to resolve back tax debt.

We first negotiate with the IRS and state so that they will remove bank and wage levies voluntarily.  The IRS will remove levies if an Installment Agreement, Offer in Compromise, or other arrangement is agreed upon.  Also, the IRS will agree to cease seizures if the taxpayer can show that IRS action causes hardship.  If the IRS refuses, we use other legal remedies to terminate enforced collection action.

The filing of a Federal Tax Lien endangers your financial security and ruins your credit rating.  Once the IRS files a lien, taxpayers undergo extreme difficulty borrowing money and obtaining other credit.  If you sell your property, the IRS gets paid first, often leaving the owner with little or no proceeds from the sale.

Our tax attorneys find solutions to prevent the filing of a tax lien that will not directly impact on your credit rating.  We exhaust all available means of preventing the filing of a lien, including appeals at the IRS.

If a tax lien has already been filed, we closely examine the entire process to determine whether the IRS has complied with its regulations and procedures.  Often times, the IRS files tax liens improperly or in the wrong location and leaves them in place even after the IRS can no longer legally pursue collection.  When the IRS has properly filed a lien and the lien is still in force, the Bankruptcy and Tax Law Center attorneys use their expertise and experience to negotiate releases through sale of property where the IRS agrees to remove the lien.

Non-Collectible Status
Another way the Bankruptcy and Tax Law Center attorneys stop enforced collection action is by negotiating a “Currently Not Collectible” status.  The IRS refers to this status by the letters “CNC.”  If the taxpayer cannot pay for back taxes through full payment, an Installment Agreement, or an Offer in Compromise, the IRS may place the account in CNC status.  The IRS then ceases collection activity.  If the taxpayer’s financial situation remains the same, the IRS keeps the account in CNC status.  Should the taxpayer’s finances improve, the IRS will resume collection action and request payment.  While in CNC status, penalties and interest continue to accrue.  The statute of limitations, which generally puts a 10-year limit on how long the IRS can pursue collection, continues to run.

Bankruptcy
For some taxpayers in extreme situations, bankruptcy is necessary to stop IRS collection and resolve back tax debt.  Click here to learn more about bankruptcy debt relief.

No matter where you are in the process – at the beginning of IRS collection action, suffering from a levy or lien against your bank accounts and paycheck – call us for help.  The expertise, experience, and knowledge of tax attorneys like those of the Bankruptcy and Tax Law Center can end enforced collection action by the IRS and State.

Get a Fresh Start today by calling 1-800-TAX(829)-6183 or fill out our simple Contact Form.