State & IRS liens, levies and seizures are some of the strongest collection tools at the disposal of the government. For example, if you owe back taxes to the IRS, a tax lien automatically attaches to your personal property. This statutory tax lien is also called a “secret lien” since only the taxpayer and the IRS are aware of its existence. The IRS then sends you a tax bill, which if not paid within 30 days allows the IRS to make the lien public by filing a notice in the public records. The filing of the Notice of Federal Tax Lien would severely damage your credit record which in turn would result in further financial hardship.
If after filing the Notice of Federal Tax Lien you still don't pay the tax bill, the IRS would remind you again of your tax debt and then will proceed to seize your property by initiating the tax levy process. By law, the IRS has the power to take your personal and real property. Your bank accounts may be seized (also known as bank levy) and your wages may be garnished.
If you have recently received a tax notice or tax bills from the IRS or from your state taxing agency, do not ignore them. These letters are only the first steps in the tax collection process, which may result in tax liens, tax levies (including a bank levy) and wage garnishments. When the IRS issues a bank levy in Maryland, they freeze all of your funds in the affected account, leaving you unable to access them. This can cause significant financial hardship and make it challenging to pay bills or cover daily living expenses.
If you need assistance releasing an IRS bank levy or need more information about IRS asset seizures, schedule a free consultation with attorney Kamyar Mehdiyoun.
