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Tax Liens and Bank Levies

Remove the IRS Tax Liens Holding You Back in Los Angeles

An IRS tax lien is a claim against a taxpayer’s property or person used as collateral for a tax debt and is one of the IRS’ most aggressive collection actions to fulfill an unpaid tax debt. Based in Sherman Oaks, Alana Tax Group can help you remove IRS tax liens and restore your financial wellbeing.

Tax liens are attached to all property, and all rights to property, such as accounts receivable, for business owners. The claim extends to property acquired after filing the tax lien, as well, to ensure funds made from the property are applied the IRS debt. An IRS tax lien will show on a taxpayer’s credit and public records for creditors, banks, and other financial institutions.

The IRS cautions that credit ratings have a chance of dropping once a lien is filed. It will be difficult to qualify for a loan, buy a home or car, apply for a new credit card, or even sign a lease. A tax lien can also lead to a taxpayer being denied security clearance if they work for the government or have government contracts, as well as losing their license in certain fields. We’re here to help you navigate this stress.

How can you remove IRS tax liens? Know where to start.

In most cases, it is only after a taxpayer has fulfilled their obligation of repayment will the IRS release the tax lien against them. Fortunately, there are a number of ways a taxpayer can repay their tax debt, including:

  • Direct Debit Installment Agreement
  • Streamlined Installment Agreement
  • Partial Payment Installment Agreement
  • Offer in Compromise

Other ways to remove IRS tax liens depends on a taxpayer’s circumstances. A taxpayer can apply for a Discharge of a Federal Tax Lien if one of the following applies to them:

  • A taxpayer entered into a Streamlined Installment Agreement.
  • The IRS lien was filed incorrectly.
  • A taxpayer can prove that by withdrawing the IRS lien they will pay the debt faster.
  • A taxpayer can prove that the withdrawal is in the government’s best interest.

Tax Lien Appeal and Withdrawal

You can get the IRS to remove Notice of Federal Tax Lien if you can show that the IRS was in the wrong. A lien can be removed with tax resolution on appeal if:

  • The tax debt has already been paid in full.
  • The lien was filed in error.
  • The lien was filed in error and the IRS made a processing error with your return.
  • The IRS did not follow proper procedures.
  • You were going through bankruptcy when the lien was filed.
  • You weren’t given a chance to dispute the amount assessed by the IRS.
  • You wish to make spousal defenses by claiming that your spouse should be liable for the lien.
  • You want to discuss collection options, like through the Fresh Start Initiative.
  • The statute of limitations of 10 years on collecting the tax debt has passed.

On the notice of the lien, you are given the option to request a Collection Due Process hearing with the Office of Appeals. The request for an appeal must be made within 30 days after fifth day of the lien being filed, or by the date indicated on the notice.

A new tax lien policy allowing for “withdrawal” gives hope to many struggling taxpayers. Withdrawal removes the lien as if it was never there, and occurs when the taxpayer’s lien is paid off, or it’s proven that the lien was filed falsely. Withdrawal is also possible if you qualify for the Fresh Start Initiative, have entered a direct debit agreement, and your balance is lower than $25,000. We will happily walk you through each process to ensure you reach the right solution.

Resolve or Remove Bank Levies

With Alana Tax Group’s help, you can remove bank levies and release your accounts from the IRS’s hold. An IRS Bank Levy is a process where the IRS seizes the liquid funds from a taxpayer’s bank account due to an IRS tax debt. This means the IRS takes the entire amount in the account(s) to apply toward the tax debt.

When will the IRS initiate a bank levy?

Once an IRS bank levy is attached to a taxpayer’s account(s), the bank is required to hold the seized funds for 21 days. During the 21-day holding period, a taxpayer can make arrangements with the IRS to satisfy the debt, or prove that the seizure would put them in a financial hardship, at which point the IRS may release the funds back to the taxpayer. After the 21 days, if there is no agreement between the taxpayer and the IRS, the bank must send all funds directly to the IRS to be applied to the taxpayer’s tax debt.

While the IRS can levy a taxpayer’s account(s) again, in rare occasions, most bank levies are a one-time occurrence. Only funds existing in the account(s) at that time of the levy are seized. Funds deposited after the levy has been issued are not affected.

Can the IRS levy joint bank account?

Many people believe that any joint accounts they have cannot be touched, but if the account includes the debtor’s name, it is susceptible to an IRS bank levy.

What types accounts can the IRS levy?

The IRS can place a bank levy on almost any type of bank account, including savings accounts, checking accounts, joint bank accounts, mortgage escrow accounts, school bank accounts, or any other type of account that can be seized by the IRS to fulfill the tax debt. IRS bank levies can also be applied to IRAs, 401ks, and other retirement accounts.

The IRS can place a bank levy on almost any type of bank account, including savings accounts, checking accounts, joint bank accounts, mortgage escrow accounts, school bank accounts, or any other type of account that can be seized by the IRS to fulfill the tax debt. IRS bank levies can also be applied to IRAs, 401ks, and other retirement accounts.

What about Social Security and Medicare?

With this IRS tax levy, the IRS can garnish up to 15% of Social Security benefits until your tax debt is satisfied. Medicare payments can also be garnished until your tax debt is satisfied.

Can Income Tax refunds be garnished?

Yes. State tax refunds can be garnished through the State Income Tax Levy Program.

Property Seizure

This is usually the last resort for the IRS and reserved for the most uncooperative tax debtors.

How can a bank levy be lifted?

A bank levy can be lifted quickly if taxpayers pay back the entire tax debt amount in a single payment or make arrangements with the IRS by being placed in an IRS program. The following are arrangements that could be made:

  • Request Currently not Collectible status.
  • Request an individual installment agreement, all missing returns must be filed, and manager approval may be needed.
  • Request and business installment agreement, all missing returns must be filed, and manager approval may be needed.
  • Request an Offer in Compromise, all missing returns must be filed, and manager approval may be needed.

If you are currently being levied or your wages are being garnished, then you must take immediate action, the IRS has you in their sights, they won’t forget about you. In fact, it will only increase the pressure to collect from you! Contact Alana Tax Group today for lasting solutions and peace of mind.

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