Garnishments Levies and Liens
The IRS and State taxing authorities have vast power when trying to collect delinquent income taxes, withholding taxes, and sales taxes. Because of these powers, the worst thing a business or individual that owes taxes can do is to ignore a problem and hope it goes away.
There are wide-ranging impacts for garnishments and liens.
Ignoring correspondence and attempts at contact from the IRS often results in a garnishment and/or a tax lien. Liens are a notice to your creditors and others that you owe a debt to the IRS or state. Tax liens have a significant impact on your credit, affecting your ability to secure loans, buy a house, and get or maintain security clearance for employment.
The IRS has access to W2s and banking information, making it easy to garnish your bank account or wages. If you are self-employed and receive a Form(s) 1099, the IRS could take all funds owed to you through commissions or receivables. Consequently, the IRS can control any means you have to pay your mortgage, car payments, child support, tuition, medical expenses and other obligations.
A garnishment or lien against a business can be equally devastating. The IRS or State can garnish business bank accounts or accounts receivables, leaving insufficient funds to pay operating expenses, suppliers, wages – and current taxes. If not resolved quickly, a garnishment can put a company out of business. A lien can also signal existing or prospective clients that your company may be financially unstable and lead to lost contracts or business.
Equity Search can prevent garnishments – or get garnishments released so that you get back to business.
Equity Search tax advisors can help prevent a garnishment from occurring in the first place. If assets have already been levied, in many instances we’re able to get them released in a matter of hours.
Once a client agrees to move forward with us, we have Power of Attorney, which allows us to fully negotiate on your behalf. We immediately reach out the IRS, find out what we need to release the garnishment and protect your assets from future levies.
On their end, the IRS will be pleased to know that the problem is being addressed, and that an experienced tax professional is committed to working towards a solution.
We can help prevent or lessen the consequences of a garnishment or lien. Contact us to review your situation and take steps to resolve the issue before it impacts your credit and financial security.