What happens if the IRS sends you to collections?
Once a tax liability has been assessed, the IRS can and will begin the collection process. The tools at the disposal of the IRS ─ tax liens and tax levies ─ can cripple the finances of any individual or business.
Federal Tax Liens: The tax lien is a significant IRS tool that serves as a security device for the IRS to protect its position relative to other creditors. If a federal tax lien is filed against your real property, you may not be able to sell the property, modify your mortgage, or otherwise obtain needed financing without removing the cloud on title.
IRS Tax Levies: The IRS can also collect tax debts by use of a tax levy - a legal seizure of property. Unlike a federal tax lien, a tax levy's purpose is to take your property away. The IRS can levy property and bank accounts, as well as garnish your wages, a type of administrative levy that does not require a court order. Generally speaking, the IRS is required to give notice of its intent to levy, which gives you some time to take action - but you need to act quickly.
It may be possible, under certain circumstances, to challenge a tax levy and reduce the amount levied to allow for immediate expenses, like housing and food. An experienced tax attorney can keep the IRS at bay and limit the damage caused by collections.
If you're facing collections, let Brown & Jensen get to work for you
Remember, government agencies are ultimately beholden to the taxpayers, including you. They're supposed to work with you - but without an experienced tax attorney on your side, you'll be at a significant disadvantage.
Our legal team can work with the IRS, ADOR, or other taxing authority to create a monthly payment plan or settle your tax debt entirely. We can also investigate the procedures used during the collection process and take action to protect your rights.
Taking on the IRS on your own is a recipe for failure. If you are having problems with your taxes, turn to a knowledgeable tax attorney from our Mesa law firm to fight for your best interests. Contact us today for a consultation.