The intricate nature of the IRS tax code, in addition to the numerous changes it sustains each year, has led many hardworking Americans into tax debt. At Enhanced Tax Solutions, we know that a thorough understanding of the IRS tax code and quick action is key to correcting federal tax debt and avoiding collection proceedings. If you have a tax debt, time is of the essence. Don't wait for the IRS to commence penalty actions, contact us today and see what our expert knowledge and rapid assistance can do for you.
Federal Tax Lien
Tax liens give the IRS legal claim to your property. This is done to ensure funds made from the property are applied to your tax debt. The IRS will notify your creditors publicly, letting them know they have a claim against your property.
A tax lien attaches to all of your property, and to all of your rights to property, such as accounts receivable, if you're a business owner. The claim extends to property acquired after filing the tax lien as well. 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, to buy a home, car, or apply for a new credit card. You may even be unable to sign a lease.
Bank Levy
The IRS sends a letter to your bank, notifying them that funds will be seized from the taxpayer's bank account. Your bank will be required to hold funds you have deposited up to the amount you owe the IRS for 21 days. After the holding period, the bank must send all funds directly to the IRS.
Delinquent Payroll Tax
Payroll taxes refer to the Social Security tax and the Medicare tax. Social security taxes are designed to provide benefits for retired workers, the disabled, and the dependents of both. Medicare taxes are designed to provide medical benefits for individuals when they reach age 65.
Social Security and Medicare must be filed properly, or the IRS may go after the company's assets. In certain circumstances, the IRS can pursue company owners, officers, and specific employees if necessary to satisfy the delinquent taxes. If you, or someone else within your business are found to be willfully responsible for failure to pay payroll taxes, you could be held personally liable for a portion of the tax.
Following an investigation and assessment of you and your employees, the IRS can begin collection efforts aimed at your personal assets. This includes bank accounts, property, and other assets. In some cases, the IRS may liquidate its assets in order to satisfy the tax debt.
Tax Penalties and Interest
"Failure to File" and "Failure to Pay" penalties can increase tax debt very quickly. Due to this, it's in your best interest to take care of tax debt issues as soon as possible.
Wage Garnishment
The IRS sends a letter to a taxpayer's employer requiring they withhold a portion of the employee's pay and to be paid directly to the IRS or face penalties themselves. For the self-employed, the IRS sends the wage garnishment to the taxpayer's accounts receivable. Money owed to you for services rendered is required to be sent to the IRS. The IRS can also levy your Federal and State payments, such as social security, welfare, or disability.
An IRS wage levy will remain in place until the tax liability is paid or it is corrected through some other means.
