Dealing with IRS tax debt can be overwhelming, especially when faced with aggressive collection methods like levy garnishments. Unlike a standard wage garnishment, where a portion of your paycheck is withheld, an IRS levy allows the government to seize your assets and property to satisfy outstanding tax debt. Understanding your rights and legal options is critical to protecting your financial future. At Logan A. Weinkauf, PC, we help individuals and businesses in Massachusetts navigate tax levies and find effective solutions to resolve their tax liabilities.

What Is a Levy Garnishment?

A levy is a legal action that permits the IRS to seize and sell your assets to satisfy a tax debt. This differs from a lien, which is a legal claim on property but does not involve immediate seizure. When a levy is imposed, you risk losing access to funds or property, making it essential to take immediate action.

Types of Property Subject to an IRS Levy:

  • Bank Accounts: The IRS can freeze and seize funds from your checking or savings accounts.
  • Wages & Benefits: Your employer may be required to withhold a significant portion of your paycheck.
  • Homes & Real Estate: The IRS has the authority to seize and sell real estate to recover unpaid taxes.
  • Vehicles & Boats: Personal and business vehicles, as well as recreational assets, may be seized.
  • Retirement Accounts: While certain protections apply, the IRS can levy retirement accounts under specific conditions.
  • Accounts Receivable & Business Income: The IRS can levy outstanding invoices or income for business owners.
  • Rental Income: If you own rental properties, the IRS can divert income from tenants to satisfy tax debt.

How Does the IRS Issue a Levy?

The IRS does not seize property without warning. The levy process follows specific legal steps:

  • Tax Assessment & Notice: The IRS determines the tax amount owed and sends a notice requesting payment.
  • Final Notice of Intent to Levy: If the debt remains unpaid, the IRS sends a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before taking action.
  • Right to Appeal: You have the right to request a Collection Due Process (CDP) hearing to dispute the levy or negotiate alternatives.
  • Levy Enforcement: If no resolution is reached, the IRS proceeds with seizing assets or garnishing wages.

If you receive a Final Notice of Intent to Levy, acting immediately to explore options such as tax settlement, installment agreements, or levy release is crucial.

How to Stop an IRS Levy

The good news is that an IRS levy is not always permanent. There are several ways to stop or release a levy, including:

  • Paying the Tax Debt: If you can pay the outstanding balance, the IRS will release the levy promptly.
  • Negotiating an Installment Agreement: Setting up a structured payment plan can prevent further collection actions.
  • Submitting an Offer in Compromise: You may be able to settle for less than the full amount owed.
  • Filing for Hardship Relief: If the levy creates a financial hardship, the IRS may temporarily suspend collection efforts.
  • Appealing the Levy: Errors in the assessment or collection process may justify an appeal or request for reconsideration.
  • Declaring Bankruptcy: While not always ideal, certain bankruptcy filings may discharge tax debt or halt collection actions.

At Logan A. Weinkauf, PC, we analyze your financial situation and determine the best legal strategy to stop or reduce the impact of a levy.

Why You Need a Tax Levy Lawyer

Facing an IRS levy without legal guidance can lead to serious financial consequences. A tax levy lawyer can help by:

  • Protecting Your Assets: Ensuring that your rights are upheld and assets are not wrongfully seized.
  • Negotiating with the IRS: Advocating for alternative solutions such as installment agreements or debt reductions.
  • Filing Appeals & Stopping Levies: Identifying legal grounds to challenge improper levies.
  • Providing Comprehensive Tax Relief Strategies: Exploring long-term solutions to prevent future IRS issues.

Contact Logan A. Weinkauf, PC Today

If you’re facing an IRS levy garnishment in Massachusetts, do not wait until it’s too late. Our firm has extensive experience in tax relief, bankruptcy, debt negotiation, and asset protection, providing customized solutions to help you regain financial stability. With offices in New Bedford, Brockton, Fall River, and Mashpee, we serve clients throughout the state with experienced and effective legal representation.

Contact us today to schedule a consultation and take the first step toward resolving your tax debt and stopping IRS collection actions.