A tax levy is one of the most severe actions the IRS or the Virginia Department of Taxation can take to collect unpaid taxes. If you find yourself facing a tax levy in Virginia, it’s essential to understand your rights, the process, and how a Virginia tax levy lawyer can help. In this article, we’ll explore what a tax levy is, why you may need a tax levy lawyer, and the steps they can take to protect your financial future.
What is a Tax Levy?
A tax levy is a legal action that allows tax authorities, such as the IRS or the state of Virginia, to seize your assets to satisfy unpaid tax debts. Unlike a tax lien, which is a claim against your property, a tax levy allows for the actual seizure of your assets. This may include:
Wages: Garnishing a portion of your paycheck.
Bank Accounts: Freezing and seizing funds in your bank accounts.
Property: Seizing physical assets like your car or real estate.
Social Security Benefits: In some cases, levies can apply to Social Security income.
A tax levy is often the last resort for tax authorities after other attempts to collect the debt—such as sending notices or arranging payment plans—have failed. However, even at this stage, you still have legal rights, and a Virginia tax levy lawyer can help protect those rights.
Why You Need a Virginia Tax Levy Lawyer
Dealing with the IRS or state tax authorities can be a daunting and stressful process. When faced with the possibility of losing your assets, it’s crucial to have legal guidance from a tax levy lawyer who understands Virginia and federal tax laws.
Here’s why hiring a Virginia tax levy lawyer is essential:
Immediate Action to Stop the Levy: A tax lawyer can act swiftly to negotiate with the IRS or state tax authorities to stop or delay the levy. This can buy you time to explore options like setting up a payment plan or disputing the amount owed.
Knowledge of Tax Law: Virginia tax levy lawyers are experts in both state and federal tax laws. They can help you navigate the complexities of the tax code and determine if the levy was issued correctly. There are strict rules that the IRS and the state must follow when issuing a levy, and your lawyer will know how to challenge the levy if any violations occurred.
Appealing the Levy: You have the right to appeal a tax levy, but there are specific deadlines and procedures to follow. A tax levy lawyer can guide you through this process, ensuring that your appeal is filed correctly and on time.
Negotiating with Tax Authorities: In many cases, a lawyer can negotiate a settlement with tax authorities, reducing the amount of tax you owe or arranging a manageable payment plan. An experienced tax levy lawyer will have established relationships with IRS and Virginia Department of Taxation representatives, giving them an advantage in negotiations.
Exploring Alternative Options: A Virginia tax levy lawyer can help you explore other alternatives to resolve your tax debt, such as an Offer in Compromise, Innocent Spouse Relief, or currently not collectible status. These options may allow you to settle your tax debt for less than the full amount owed or suspend collection efforts due to your financial hardship.
Steps a Virginia Tax Levy Lawyer Will Take
Once you hire a tax levy lawyer, they will take immediate action to protect your assets and financial stability. Here are the common steps they may take:
Review Your Case
Your lawyer will thoroughly review your tax situation, including any correspondence from the IRS or the Virginia Department of Taxation. This review will help determine whether the levy was properly issued and identify potential defenses.
File for a Collection Due Process (CDP) Hearing
If the levy is unjust or improperly issued, your lawyer can request a Collection Due Process (CDP) hearing. This hearing gives you an opportunity to dispute the levy and present your case to a tax authority.
Negotiate with Tax Authorities
Your lawyer will work to negotiate a resolution with tax authorities. This may involve securing a payment plan, reducing the overall tax debt, or arranging for the levy to be lifted while negotiations are underway.
File Appeals and Petitions
If necessary, a tax levy lawyer can file appeals and petitions on your behalf. This is particularly important if the IRS or state refuses to cooperate or if your levy involves complex legal or financial issues.
Provide Ongoing Legal Representation
A tax levy lawyer can offer continued support and representation throughout the process, helping you resolve the tax debt while protecting your rights.
Preventing Future Levies
While a tax levy lawyer can help address immediate issues, they can also provide valuable guidance on preventing future tax problems. This may include advice on proper tax planning, ensuring compliance with Virginia tax laws, and helping you stay up to date with your tax payments.
Facing a tax levy can be overwhelming, but with the help of a Virginia tax levy lawyer, you can take control of the situation. A skilled tax attorney will help you understand your rights, stop the levy, and explore options for resolving your tax debt. Don’t wait until your assets are seized—consult a Virginia tax levy lawyer to protect your financial future and gain peace of mind.