Robert J. Fedor, Esq., L.L.C.

No relief for taxpayers impacted by IRS liens or levies

As of today, Americans have endured 16 days of the federal government shutdown. As Washington politicians continue to haggle over a deal to avoid default and reopen the government, citizens across the U.S. are left to deal with the fallout.

Due to their size and scope, many federal government offices employ a series of automated systems to ease workflow and general processes. This is especially true of the Internal Revenue Service. Based on their records, the IRS routinely issues levies and liens on the bank accounts of U.S. taxpayers. In fact, during 2012, the IRS issued an average of 71,000 levies and 20,000 liens per week.

In many cases, taxpayers are able to directly contact an IRS representative and either report an error or work out an agreeable solution to their tax issue to have the lien or levy removed. Currently, however, federal IRS offices are closed and taxpayers dealing with an IRS lien or levy have no recourse and, more importantly, no access to frozen funds. 

Most Ohio residents rely each day upon funds available in their bank account. Imagine, therefore, not being able to access these much-needed funds to pay a mortgage or a health insurance premium. The repercussions of missing even one payment for these types of necessities are immediate and far-reaching.

One couple who owns a small business fell into tax trouble during the economic downturn in 2008. As a result, the couple failed to pay taxes for the tax years 2008 and 2009 and now owe $89,000 in back taxes and penalties. While the small business owners have taken steps to work out a plan with the IRS to repay the tax debt, they recently learned that the IRS placed a levy on their business's bank account. As a result, the couple does not have access to funds needed to pay salaries, health insurance premiums or payroll taxes.

To avoid a tax lien or levy, individuals would be wise to enlist the assistance of a tax attorney. A legal professional who handles tax matters related can help taxpayers avoid these types of unfortunate situations.

Source: Forbes, "As IRS Shutdown Drags On, Some Taxpayers Face Big Problems," Janet Novack, Oct. 10, 2013

No Comments

Leave a comment
Comment Information