IRS Levies Attorney in Oklahoma City, Oklahoma
An IRS levy is a legal seizure of property or assets to satisfy a tax debt. It allows the IRS to take control of property, such as wages, bank accounts, vehicles, and real estate, to pay off outstanding taxes owed by an individual or business. Levies are different from liens, which are legal claims against property used as collateral to secure the tax debt.
Avoiding IRS levies in Oklahoma, or any state for that matter, involves proactive tax planning, compliance with tax obligations, and timely communication with the IRS. If you find yourself with IRS levies in Western Oklahoma or the surrounding areas, I can help. Reach out to my law firm at Deborah Brooks & Associates, P.C. today to schedule a consultation.
Types of IRS Levies
Wage Garnishment: Wage garnishment is a legal action where the IRS directs your employer to withhold a portion of your earnings to satisfy unpaid tax liabilities. Once the IRS issues a wage garnishment order, your employer must comply by deducting a specified percentage from your paycheck before you receive it. This percentage is determined by the IRS based on your tax debt and income level.
Bank Levy: When the IRS issues a bank levy, your financial institution is required to freeze the funds in your account and transfer them to the IRS to satisfy your tax debt. This can include both checking and savings accounts. The IRS usually sends a notice before issuing a bank levy, giving you an opportunity to address the issue or make alternative arrangements to pay your taxes.
Property Seizure: Property seizure is a drastic measure the IRS can take to recover unpaid taxes. This action involves the confiscation of your real estate, vehicles, or other valuable personal property. Once the IRS seizes your property, it may be sold at auction to generate funds for your tax debt. The types of property that can be seized include homes, rental properties, boats, and luxury vehicles. The IRS is required to follow specific procedures and provide notice before seizing property. Seizure is typically considered a last resort, undertaken only after other attempts to collect the debt have been unsuccessful.
Social Security Benefits: In certain circumstances, the IRS can levy a portion of your Social Security benefits to satisfy unpaid taxes. This action involves the IRS directing the Social Security Administration to withhold a portion of your monthly benefits and apply it toward your tax liability. The amount that can be levied is limited to make sure you retain a basic level of income. The IRS typically pursues this method after other collection efforts have failed and when you have not made satisfactory arrangements to pay your tax debt.
Legal Basis for IRS Levies
The IRS can levy assets only after following specific legal procedures, including:
Notice of Intent to Levy: The IRS is required to send a notice informing you of their intent to levy your property. This notice typically provides information on your rights and options to prevent the levy.
Right to a Hearing: You have the right to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals before a levy is initiated. This allows you to present your case and explore options to resolve the tax debt.
Final Notice of Intent to Levy: If you don't respond to earlier notices or make arrangements to resolve the tax debt, the IRS will send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing.
How to Avoid IRS Levies in Oklahoma
Timely Payment of Taxes
The most straightforward way to avoid IRS levies is to pay your taxes on time and in full. This includes income taxes, self-employment taxes, estimated taxes, and any other federal taxes owed. By meeting your tax obligations promptly, you reduce the risk of accumulating tax debt that could lead to enforcement actions by the IRS.
If you're self-employed or receive income not subject to withholding, such as rental income or investment income, it's essential to pay estimated taxes quarterly to avoid penalties and interest.
If you can't pay the full amount of taxes owed, you may qualify for an installment agreement with the IRS. This allows you to pay off your tax debt over time in manageable monthly payments.
Open Communication With the IRS
Maintaining open communication with the IRS is crucial if you're unable to pay your taxes in full or on time. Ignoring IRS notices or failing to respond can escalate the situation and increase the likelihood of enforcement actions, such as levies.
If you receive a notice from the IRS regarding unpaid taxes or a potential levy, take action promptly. Contact the IRS or consult with an IRS levies attorney to understand your options and prevent further collection actions.
If you receive a Final Notice of Intent to Levy, you have the right to request a Collection Due Process (CDP) hearing. This allows you to present your case, challenge the proposed levy, and explore alternatives, such as an installment agreement or offer in compromise.
Negotiate Payment Options
If you're unable to pay your tax debt in full, explore alternative payment options with the IRS:
Installment Agreements: As mentioned earlier, installment agreements allow you to pay off your tax debt over time. The IRS offers different types of installment agreements based on the amount owed and your financial situation.
Offer in Compromise (OIC): An OIC is an agreement between you and the IRS that settles your tax debt for less than the full amount owed. To qualify for an OIC, you must demonstrate that paying the full amount would create financial hardship or that you have doubts about the accuracy of the tax debt.
Currently Not Collectible (CNC) Status: If you're experiencing financial hardship and can't afford to pay your tax debt at the moment, you may qualify for CNC status. This temporarily suspends collection actions, including levies, until your financial situation improves.
Seek Professional Tax Help
Managing tax issues and negotiating with the IRS can be challenging and overwhelming. Consider seeking assistance from a qualified IRS levies attorney who tackles IRS matters and can provide expert guidance tailored to your specific situation.
An IRS levies attorney can help you develop a tax planning strategy to avoid future tax problems, guarantee compliance with tax laws, and minimize your overall tax liability.
If you're facing IRS enforcement actions, such as a levy or lien, an IRS levies attorney can represent you during CDP hearings, negotiations for installment agreements or offers in compromise, and other interactions with the IRS.
Understand Your Rights and Options
It's essential to understand your rights as a taxpayer and the options available to resolve tax debt and prevent IRS levies:
Taxpayer Bill of Rights: The IRS has established a Taxpayer Bill of Rights that outlines your rights during the tax collection process, including the right to appeal IRS decisions, receive clear explanations of your tax responsibilities, and seek representation.
Legal Defenses and Challenges: In some cases, you may have legal defenses or grounds to challenge IRS actions, such as errors in tax assessments, improper collection procedures, or the expiration of the statute of limitations for collecting tax debt. As your IRS levies attorney, I can assess your taxes and determine if any improper collection procedures were conducted.
Maintain Accurate Financial Records
Maintaining accurate financial records is essential for managing tax obligations and responding to IRS inquiries effectively. Keep records of income, expenses, deductions, and other financial transactions that support your tax filings. This documentation may be needed to substantiate claims, negotiate with the IRS, or challenge tax assessments.
If you receive a notice from the IRS regarding a tax debt or potential levy, review it carefully and verify the information against your records. Discrepancies or errors should be addressed promptly to prevent misunderstandings and potential enforcement actions.
Consider Innocent Spouse Relief
If you filed a joint tax return with your spouse and are facing IRS collection actions due to their unpaid taxes or errors on the return, you may qualify for innocent spouse relief. This relief can protect you from liability for taxes owed by your spouse under certain circumstances, such as misinformation or fraudulent activities.
Stay Informed About Tax Law Changes
Tax laws and regulations are subject to change, which can impact your tax obligations and options for resolving tax debt. Stay informed about updates to federal and state tax laws that may affect your financial situation and tax planning strategies.
Reach Out to Deborah Brooks, Attorney at Law
Avoiding IRS levies in Oklahoma requires proactive tax planning, compliance with tax obligations, and effective communication with the IRS. By paying taxes on time, maintaining accurate financial records, and seeking professional tax assistance when needed, individuals and businesses can mitigate the risk of IRS enforcement actions, such as wage garnishment, bank levies, or property seizures.
If you're facing IRS levies and need assistance in Western Oklahoma, my team at Deborah Brooks & Associates, P.C. is here for you. Reach out to my office today to schedule a consultation and see how we can help you avoid an IRS levy.