A tax levy involves the compulsory taking of your home to repay tax liability owed on a property. In this case, the property involved could include personal property, bank accounts, cars, boats, properties, paychecks, accounts receivable, tax refunds and more. While tax is generally billed as a charge for obtaining or making a tax return, it may also be due in cases where the tax assessor incorrectly interpreted tax laws or a tax deficiency exists. If taxes are not paid in time, the government can step in and place a lien on your home. For most homeowners, the consequence of such an action is foreclosure.
A tax levy can be applied in one of two ways – through a judicial ruling or as a penalty. While it is true that many states allow taxpayers to recover their debt via these methods, recent decisions in California and Maryland have sharply limited the amount that can be recovered. In many cases, a tax levy is the only option available. For this reason, it is particularly important for you to engage the services of a qualified Denver tax levy attorney if you find yourself in such a situation. You may not be able to negotiate with your lender on your own and even if you do manage to work out an agreeable repayment plan, the loss of your home can leave you financially devastated.
If you are being forced to repay a debt, contact a Denver tax levy attorney as soon as possible at www.coloradotaxattorneys.net/tax-levy-lawyer-denver-co/. There are at least a few different routes to pursue when you owe money to the IRS. Some of them involve settling in hopes that the IRS will eventually acknowledge the debt in negotiation and settle for a reduced amount. Others involve going to court and attempting to use a legal motion to seize the property in question to satisfy your debt.
Many tax professionals are familiar with the types of arguments that work in the federal court system. However, many are also familiar with the challenges that IRS employees often bring to the proceedings. If you have not yet tried filing for bankruptcy before, it is certainly worth your time to explore this option. Bankruptcy is often a last resort, and it is only an appropriate choice for very serious tax problems. Before deciding on this course of action, however, it is important for you to contact tax professionals who can assist you in evaluating your options. The tax professionals can advise you on whether or not you should opt for the debt resolution options presented to you or if you should instead proceed with the bank seizure.
Homeowners often fall into a very unique situation when they discover that they are behind in their taxes. Some simply cannot afford to pay the taxes, but they don’t want to risk the property or face the prospect of having it sold to an collection agency. On the other hand, some homeowners understand that they have gotten behind but are unable to bring themselves out of the financial crisis. In either case, it is important to understand how a tax levy works and what you can do if you are behind on your taxes. When you opt for home loan debt consolidation, the tax professional can help you get your debts in check while working with you to arrange new payment terms.
A tax levy is an order from a court allowing a creditor to seize property due to tax evasion. If a creditor obtains a levy against a taxpayer’s accounts in the Internal Revenue Service, the taxpayer is notified that the IRS has frozen his or her bank accounts. The reason why the account were frozen is to prevent the taxpayer from using the funds to pay his or her delinquent taxes. While some banks may elect to reinstate the account, it is typically illegal for a taxpayer to use the funds until the funds are repaid. This is one of the few cases where you may not be able to prevent a levy but you may be able to settle the account.