When a taxpayer is served with a tax levy, it is generally a legal process that involves meeting court deadlines and providing evidence as to why the tax amount should be collected. In some cases the amount is not paid automatically but the action can be stopped in certain circumstances including bankruptcy and involuntary foreclosure. An experienced tax levy attorney will be able to stop these proceedings in an effort to help the taxpayers. For more details, visit www.coloradotaxattorneys.net/tax-levy-lawyer-loveland-co/.
A tax levy can attach property to the property owned by the citizen. In some situations it can also attach real estate, automobiles, cash, jewelry or other items owned by the individual, said a tax debt attorney in Louisiana. Levy are completely different in that they usually involve seizing property or money which is owed by the taxpayer to the IRS. In order for the IRS to prove the liability of the tax payer, they must serve a levy on the liable party.
In order to stop the process the IRS must provide proof that there is a real threat to impose a tax lien. Evidence of this comes in the form of bank statements, credit card statements, or wages that show a consistent flow of income. The burden of proof to support a tax lien is on the taxpayer, not on the IRS. There are a number of factors which go into determining whether a taxpayer may be ordered to repay a tax levy including: the amount of income versus expenses; the nature of the assets owned; and the value of those assets.
There are several financial resources that can be used by taxpayers to raise the funds needed to pay off their debt to the IRS. Common options include creating a child support payment agreement, writing a personal loan to cover the debt, or opening a bank account to hold the money. If a tax levy attorney in Colorado is hired to defend a client’s property in court, it is important to ensure that all of his/her available financial resources are used in preparation for the defense.
It is always wise to seek legal counsel when faced with mounting debt. However, some people make the mistake of believing that bank accounts will not be involved in their defense. While a tax levy attorney cannot legally force the IRS to release property, a competent lawyer can argue in favor of a client in court and attempt to have the IRS return the funds. If the IRS refuses to return the property, the bank account can be seized as part of the tax liability on that account.
A tax levy attorney can also advise clients on how to resolve the situation before appealing the lien to the Superior Court of Bankruptcy. A bankruptcy ruling may not be sufficient to settle the case, especially if there was no real loss suffered by the client as a result of the bankruptcy. An experienced lien broker can negotiate a much fairer settlement between the debtor and the creditors, and help prepare the debtor for the appeal process.
In the United States, it is against the law to avoid paying taxes. Criminal tax fraud includes many different ways to commit tax fraud, including, misrepresentation about income, non reporting of profits, using a misleading tax code, using a tax shield, and making a false tax declaration. The penalties for criminal tax fraud can include jail time, fines, and in some cases, even death sentences. The IRS, which is the agency that punishes criminal tax fraud, has made some very stiff tax fraud penalties.
In most cases, there are stiff penalties that apply to tax fraud. The most severe penalties include jail time, fines, and in extreme cases, the death penalty. Penalties for using incorrect information during filing and payroll preparation can be very high. Many states also have laws that allow criminal penalty for using false information during income tax returns and payroll tax fraud.