Tax Liens/Tax Levies

The IRS uses tax liens and tax levies to enforce people paying their taxes. If you’ve been issued a tax lien or levy, you’re probably thinking a wide range of frustrating questions: “What can they take from me?” “Can I fight back?” “What do I do now?” If you’re working on getting your finances in order, a levy or lien against you is the last thing you need right now.

The Difference Between a Tax Lien and Tax Levy

You’ll typically get a tax lien when your tax debt balance is large or if you’ve ignored mailed warnings from the IRS. Tax liens impact your property. They prevent you from selling property until you pay old property taxes, penalties, and interest. The IRS issues tax liens to protect their interest in your property, essentially granting them rights to your property until you pay them what you owe.

By contrast, the IRS issues a tax levy when they plan to move forward with seizing the property that has the liens. The IRS typically issues these when they are nearing the statute of limitations on collecting the property (in Nevada, the statute of limitations is 10 years). A tax levy may also be issued if you’ve willfully evaded the IRS’s attempts to make a payment plan.

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Tax Liens & Levies: Myth vs. Fact

Receiving a tax lien or levy can be extremely intimidating, and many people feel as though they’ll be hunted down by the IRS until they satisfy the debt. There are many misconceptions about these IRS actions, though, and it’s important to understand your options before doing anything else.

Myth: I can't fight a lien or levy.

Fact: You can fight it! Both a tax lien and a tax levy can be removed if you fit within certain parameters. They can be removed — even if you still owe taxes — but you have to work with the IRS and be proactive about settling your debt.

Myth: The IRS won't quit until I pay.

Fact: The IRS is very willing to work with you if approach the problem strategically. Even if you don’t get the debt removed completely, your attorney can work with them to minimize the amount that you owe.

Las Vegas Wage Garnishment Laws

A related topic to tax liens and levies is wage garnishment. If you owe a person or an institution money, they may arrange for the court to issue you/your employer a wage garnishment. When this happens, your employer is legally obligated to withhold part of your paycheck so that it can be sent to the person/institution you are indebted to.

In Clark County, there are a few specific rules to keep in mind. If your employer receives a wage garnishment for you, they have 20 days to respond. If they don’t, you are responsible for following up on the wage garnishment within 4-6 weeks of the reduced paycheck. At most, your employer can withhold 25% of your net pay, but they have the power to choose how much your net pay is affected.

Tax Liens & Tax Levies Attorney in Henderson, NV

Whether you’ve been issued a tax lien or levy or your employer has started withholding parts of your pay as part of a wage garnishment, this news can be extremely overwhelming. When you feel as though you have no options but to pay off the debt (and destroy your budget doing so), contact us. We can represent you against the IRS and help you work out a manageable, realistic plan of action.