If the word “levy” has come up when it comes to your taxes, now is a good time to get educated on exactly what this means.
According to the IRS, “An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.”
When it comes to your wages, the IRS website explains that, “part of your wages will be sent to the IRS each pay period until:
- You make other arrangements to pay your overdue taxes
- The amount of overdue taxes you owe is paid, or
- The levy is released.
Part of your wages may be exempt from the levy and the exempt amount will be paid to you. The exempt amount is based on the standard deduction and an “amount determined” calculated in part based on the number of dependents you are allowed for the year the levy is served.
Having your paycheck levied can create a financial hardship immediately, so it’s important to take the necessary steps now to either address the levy proactively or have it released as soon as possible.
Why Does The IRS Garnish Wages?
The IRS doesn’t simply levy wages with no communication. Wage garnishments are a last resort for the IRS to collect taxes, and they occur only after several attempts and outreach via U.S. mail. They send a single, final notice to the individual, and only then can wage garnishment begin.
It is important to note that levied wages aren’t a one-time occurrence. The IRS says, “Unlike a one-time bank account seizure, a wage levy is continuous. It automatically takes a portion of your paycheck every pay period until the debt is paid off or another payment arrangement is made.”
Can A Tax Attorney Help With Levied Wages?
The best way to work with a tax levy is to not get one in the first place. However, if your wages are being garnished, you may have additional options to help make it more manageable.
- Pay the tax debt in full, if financially possible.
- Request an installment agreement to pay the debt over time.
- Explore an Offer in Compromise if the taxpayer qualifies.
- Request a levy release when appropriate, such as when the levy is creating an economic hardship or another legal basis for release exists.
- Challenge the underlying collection action when there are grounds to do so.
A tax attorney can communicate with the IRS on the taxpayer’s behalf and support by reviewing IRS notices, financial information, and collection history. An attorney can also help determine which resolution option is appropriate and, when possible, negotiate with the IRS.
Tax Attorney for Levies in Washington, DC and Maryland
If you’re experiencing a levy of any sort, Michael Lapidus at The Lapidus Law Firm can help. You don’t have to navigate this situation alone. Michael Lapidus at the Lapidus Law Firm can help you understand your options and work toward resolving your tax debt.
Tax Attorney Michael Lapidus earned an LL.M. in Taxation from Georgetown University Law Center and is admitted to practice in DC, Maryland, and Pennsylvania. He has extensive experience representing taxpayers before the IRS and state tax authorities, as well as experience in the international tax department of a large accounting firm.
Whether you’re dealing with an IRS wage levy, back taxes, penalties, or another tax-related issue, Michael Lapidus will work diligently to protect your interests and pursue the best possible resolution. Call The Lapidus Law Firm at 202-785-5111 today to discuss your situation and learn about your options.