Experienced Representation In Business Law, Estate Planning And Tax Law

Efficient Legal Guidance For IRS Tax Collection Matters

Q: What actions will the IRS take if you do not pay your tax debt?

If you do not pay your tax debt, the IRS may begin the collection process by sending notice letters that outline the amount owed along with interest and penalties. If the issue remains unresolved, the IRS may file a Notice of Federal Tax Lien, garnish wages, levy bank accounts, seize property or withhold future tax refunds.

Q: How long does the IRS have to collect unpaid taxes?

The IRS generally has 10 years from the date of tax assessment to collect unpaid taxes. Certain actions may extend this period, including submitting an Offer in Compromise, filing for bankruptcy, requesting a collection due process hearing or leaving the United States for six months or longer.

Q: Can the IRS place a lien or levy on your property in Illinois?

Yes. If tax debt remains unpaid, the IRS may file a federal tax lien against property such as a home, vehicle or other assets in Illinois. The IRS may also issue a levy to seize assets, freeze bank accounts, garnish wages or sell property to satisfy the tax debt.

Q: How can a tax attorney help with IRS or state tax collections in Illinois?

A tax attorney can help negotiate with the IRS, challenge liens and levies, explore relief options such as installment agreements or offers in compromise and protect assets during the collection process. Legal guidance can also help ensure your rights are protected while resolving tax disputes.

If the IRS has initiated a tax collection action against you, you are not alone. Many people and businesses find themselves the subject of tax liens, levies, seizures and garnishments after being unable to resolve a dispute with the IRS.

The IRS has stepped up enforcement and collections. An aggressive attorney who knows how the IRS works can make all the difference when responding to IRS tax collection actions.

The lawyers of Farrell, Hamilton & Julian, P.C., have been helping clients in Godfrey resolve IRS tax disputes for more than 60 years. We understand how to resolve tax problems, have liens, levies and garnishments removed, and put you back on track. Contact us for sophisticated legal representation during IRS tax collections at 618-208-0263.

Avenues Of Relief From IRS Tax Collection Actions

When you cannot pay your taxes, we will explore multiple avenues of relief with you, including:

Installment agreements: We can help you negotiate a monthly payment plan to satisfy your debt to the IRS. Based on a table that allows expenses for housing, utilities, food, transportation, health care and current taxes, we can determine what the IRS will want you to pay and what you can afford.
Offers in compromise: Based on your net equity, assets and your ability to pay, we can determine an amount to offer the IRS as a compromise on your taxes due.
Penalty abatement: If you can show good cause for your failure to file your taxes, failure to meet filing deadlines, late payment or nonpayment, we may be able to reduce or eliminate the fines or penalties.
Removal of tax liens, levies and garnishment: Liens, levies and garnishments are a serious problem. For example, liens and levies can force your business to close, making it impossible to pay. We can negotiate with the IRS to accept voluntary payments and resolve these issues.
Lien discharge or subordination: If the IRS has put a lien on your personal or business property and there is already a lien on that property from another source, we may be able to make the federal tax lien subordinate to it.

When we negotiate with the IRS on tax collections, we work directly with the IRS service center or revenue officer from your local IRS office on your behalf. We also provide full representation in IRS tax audits. If litigation is in your interest, we are highly experienced in tax litigation before the U.S. Tax Court and federal courts.

What Actions Will The IRS Take If You Do Not Pay Your Tax Debt?

Failing to pay your tax debt can lead to a collection process. The IRS typically begins by sending notice letters regarding the payment and any daily interest or penalties. If you do not respond to these letters, the IRS may file a Notice of Federal Tax Lien, garnish your wages, levy your bank account or seize your real property to resolve tax debt. In some cases, the IRS will withhold future tax refunds and pursue tax evasion or tax fraud charges.

How Long Does The IRS Have To Collect Unpaid Taxes?

The IRS typically has a 10-year statute of limitations from the date of tax assessment to collect unpaid taxes. There are a few situations that could add time to the statute of limitations, such as requesting an Offer in Compromise, declaring bankruptcy, requesting a collection due process hearing or leaving the United States continuously for six months or more. While the statute of limitations can expire, the IRS often takes aggressive actions to collect unpaid taxes.

Can The IRS Place A Lien Or Levy On Your Property In Illinois?

Yes. If you fail to pay your tax debt, the IRS can file a federal tax lien against your property in Illinois, including your home, vehicle or other assets. A lien will give the IRS a legal claim on your property as security for your debt until the debt is resolved. In some cases, the IRS may issue a levy to seize assets, freeze funds, garnish wages or sell property to resolve tax debts.

How Can A Tax Attorney Help With IRS Or State Tax Collections In Illinois?

Handling a complicated matter such as tax collection can be difficult without legal representation. An attorney can provide legal protection and negotiation tactics to resolve collection actions. A lawyer may be necessary to challenge liens and levies, explore tax relief programs and protect your assets. You can speak to an experienced lawyer to learn how to protect yourself from federal and state tax collections.

We Can Help Resolve Your Tax Disputes

To schedule a consultation, contact Farrell, Hamilton & Julian, P.C., by email or call 618-208-0263.