Tax Liens and Levies

Jozwiak Law has worked successfully towards the release or modification of wage and bank levies by the Internal Revenue Service for many of our clients. For clients of ours who have been prevented from purchasing or refinancing their current home, we have been able to get the Internal Revenue Service to reverse their decisions and remove erroneous tax liens that were filed against them.

Once there has been a Court order or a judgment entered against you, often the federal government is permitted to collect taxes, penalties and interest that they claim a taxpayer owes. The primary means of collection is placing a tax levy on your income by garnishing your wages. They may also go so far as to seize your retirement account, real estate or other property of value, such as an automobile.

When the Internal Revenue Service decides to levy your wages, they will force your employer to turn over most of what you earn to them to satisfy the judgment, which will often further exasperate the taxpayer's financial situation.

The most important thing needed to avoid a tax levy is to communicate with the IRS in a timely fashion. If it is addressed immediately and the IRS is contacted in time, you stand a very good chance to avoid a levy. If a levy is already in place, the process becomes much more difficult, but it is not a totally helpless situation if you have an experienced and knowledgeable negotiator on your side.

The biggest problem with a tax lien is that they become a part of your credit history and are often filed in more than one jurisdiction simultaneously. This dramatically affects taxpayers who own their own homes or who are seeking a loan.

Despite all of this power being given to the government and its organizations, the taxpayer does have certain rights and they can ask for a hearing in Court to contest what they believe to be an unfair or illegal lien or levy. This too, however, is subject to stringent time constraints and criteria, and must be dealt with accordingly.

NOTE: Because time is of the essence, and all options will need to be analyzed and considered, anyone who has been notified by the taxing authorities that they are to have a levy placed upon their wages or accounts or a lien placed on their property, should not hesitate to seek the opinion and assistance of a qualified tax lawyer.

If you feel that any of this applies to you or your situation, do not hesitate to call us for an appointment.