Dealing with an IRS tax lien or levy can be a stressful and overwhelming experience for any taxpayer. These enforcement actions can have significant impacts on your financial stability, from garnishing your wages to seizing your property. However, it’s important to know that you do have options to appeal these actions. With the guidance from our Jacksonville, FL tax lawyer, you can take steps to resolve the issue and protect your assets.
Understanding Tax Liens And Levies
Before diving into how to appeal a tax lien or levy, it’s essential to understand what they are and how they affect you. A tax lien is a legal claim the IRS places on your property when you fail to pay your tax debt. The lien doesn’t take your property but serves as a public record that shows the IRS has a right to your property until the debt is paid.
A tax levy, on the other hand, allows the IRS to seize your property to satisfy your debt. This could include garnishing wages, taking funds from your bank account, or even seizing physical assets such as your car or home.
These actions can feel aggressive, but there is a process in place that allows you to appeal them.
Your Right To Appeal
As a taxpayer, you have the right to appeal both tax liens and levies. If you’ve received notice of a lien or levy from the IRS, it’s critical to act quickly. The IRS typically sends you a Final Notice of Intent to Levy or a Notice of Federal Tax Lien before taking action. At this point, you can take steps to dispute the IRS’s decision.
Attorney Brian J. Crepeau has decades of experience in tax law. He recommends that you don’t wait until your property is seized or your wages are garnished. Filing an appeal as soon as possible gives you the best chance to resolve the situation before the IRS takes further action.
Reasons For Appealing
There are several reasons you may want to appeal a tax lien or levy. For instance, you may believe that the IRS made a mistake in assessing your tax liability or that the action taken is unjustified. In some cases, you may qualify for a release of the lien or a levy release if you can prove that the levy is causing you undue hardship.
Alternatively, you may want to dispute the levy or lien because you’ve made a good faith effort to pay the debt but need more time to resolve the situation. It’s also possible that you can present new information that could reduce the amount of the debt you owe, or show that your assets should not have been seized.
The Appeals Process
If you want to appeal an IRS tax lien or levy, the first step is typically to request a Collection Due Process (CDP) Hearing. This hearing allows you to present your case to an independent IRS officer who will review the facts and determine whether the lien or levy should be lifted, reduced, or modified. You can request a CDP hearing within 30 days of receiving the notice.
If the IRS doesn’t agree with your appeal at the CDP hearing, you can escalate the process by filing an appeal with the U.S. Tax Court or taking further legal steps. Our tax attorney can help you manage this process and represent you at the hearing, so that your rights are protected and that you have the best chance of success.
Negotiating With The IRS
In addition to appealing the lien or levy, there may be opportunities to negotiate with the IRS to find a resolution that works for both parties. For example, we can help you apply for an Offer in Compromise, which allows you to settle your tax debt for less than the full amount owed if you can prove that you are unable to pay the full amount.
We can also help you set up an installment agreement, allowing you to make manageable payments over time. These alternatives can help you avoid further IRS enforcement actions, such as levies or additional penalties.
Legal Action For Tax Issues
If you are facing an IRS tax lien or levy, it’s important to act quickly and seek professional guidance. You don’t have to handle the appeals process alone. Our team at Crepeau Mourges is here to help you understand your options and defend your rights. As a veteran-owned law firm, we strive to only provide value-added, necessary legal representation. Whether you want to challenge the IRS’s decision, negotiate a settlement, or explore alternative solutions, we can guide you through the process and help protect your financial future. Contact us today to schedule a consultation, and let us help you resolve your tax issues efficiently and effectively.
