An IRS tax lien or levy can quickly affect your finances, property, and peace of mind. If you’ve received a notice from the IRS or believe collection action may be imminent, understanding your rights and responding promptly can make a significant difference.
At Gabaie & Associates, we help individuals and businesses in Annapolis resolve IRS collection matters, including federal tax liens and tax levies. Our goal is to protect your assets while working toward a long-term resolution with the IRS.
Need help now? Contact Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page to discuss your situation.
What Is the Difference Between an IRS Tax Lien and an IRS Tax Levy?
Although the terms are often used interchangeably, a tax lien and a tax levy are two different collection tools.
IRS Tax Lien
An IRS tax lien is a legal claim against your property when you fail to pay a federal tax debt. The lien may attach to:
- Your home or other real estate
- Business property
- Personal assets
- Future property you acquire
- Certain financial assets
Essentially, a lien protects the government’s interest until the tax debt is resolved.
IRS Tax Levy
A tax levy is the actual seizure of property or assets to satisfy unpaid taxes.
Depending on your circumstances, the IRS may levy:
- Bank accounts
- Wages
- Retirement income
- Accounts receivable
- Business assets
- Certain personal property
Put simply, a lien secures the government’s claim, while a levy is the act of collecting the money or property.
What Happens After the IRS Files a Tax Lien?
Many taxpayers worry that filing a federal tax lien means they will immediately lose their property. In most cases, that is not how the process works.
Instead, the lien gives the IRS a legal interest in your property while preserving its ability to collect the debt.
However, a tax lien can still create significant challenges.
It may:
- Complicate the sale or refinancing of real estate
- Affect certain business financing opportunities
- Create issues during property transactions
- Signal that the IRS has escalated its collection efforts
The earlier you address the underlying tax debt, the more options you may have for resolving the lien.
When Can the IRS Issue a Tax Levy?
Before issuing most levies, the IRS generally must provide notice and an opportunity to respond.
This often includes:
- Assessing the tax owed
- Sending a bill demanding payment
- Issuing a Final Notice of Intent to Levy
- Providing the opportunity to request a Collection Due Process hearing
Responding before these deadlines expire is often critical.
Depending on your circumstances, you may still have options to challenge the proposed levy or negotiate an alternative resolution before assets are seized.
Can an IRS Tax Levy Be Stopped?
In many situations, yes.
Whether a levy can be prevented or released depends on factors such as:
- The amount of tax owed
- Whether collection deadlines remain open
- Your financial circumstances
- Whether the IRS followed proper procedures
- Your eligibility for collection alternatives
Potential solutions may include:
- Installment agreements
- Offers in Compromise
- Currently Not Collectible status
- Collection Appeals Program requests
- Collection Due Process hearings
- Levy release requests when appropriate
Every case is different, which is why reviewing your options with an experienced tax attorney as early as possible is important.
How Can a Tax Attorney Help With IRS Collection Actions?
Receiving an IRS collection notice can feel overwhelming, especially when your home, income, or business may be affected.
An experienced tax attorney can help evaluate your situation, communicate directly with the IRS, and identify available resolution options.
Depending on your case, legal representation may involve:
- Reviewing IRS notices and collection history
- Determining whether collection procedures were properly followed
- Requesting collection alternatives
- Negotiating payment arrangements
- Seeking release of an improper levy
- Protecting your procedural rights during the collection process
The objective is not simply delaying collection — it’s working toward a resolution that addresses the tax debt while minimizing unnecessary financial disruption.
IRS Collection Issues Facing Annapolis Taxpayers
Annapolis is home to a diverse mix of professionals, retirees, business owners, military families, and government employees. Tax issues can arise for anyone, whether from unexpected financial hardship, self-employment income, payroll tax obligations, or unresolved returns from prior years.
Federal tax liens and levies are governed by federal law, but resolving these matters often requires understanding your financial circumstances, property interests, and long-term goals. Acting early may preserve more options before collection actions become more aggressive.
IRS collection matters often begin with a series of notices before escalating to liens or levies. Understanding what those notices mean — and responding before deadlines pass — may help preserve important rights and expand the range of available resolution options. Early action can often lead to better outcomes than waiting until assets or income are at risk.
What Happens If You Ignore an IRS Tax Lien or Levy?
Ignoring IRS collection notices rarely makes the problem go away. In many cases, the IRS simply moves forward with more aggressive collection actions.
Potential consequences include:
- Continued accrual of penalties and interest
- Damage to your creditworthiness and financial flexibility
- Seizure of bank accounts or investment accounts
- Wage garnishment
- Seizure of business assets or personal property
- Increased difficulty selling or refinancing real estate
The sooner you respond, the more options you typically have to resolve the debt before the IRS escalates collection efforts.
Can an IRS Tax Lien or Levy Be Removed?
Yes — but the appropriate solution depends on your circumstances.
An experienced tax attorney can determine whether you may qualify for relief, such as:
- Release of an IRS levy after resolving the underlying tax issue
- Withdrawal of a federal tax lien in qualifying situations
- Lien discharge for the sale or refinancing of a specific property
- Lien subordination to facilitate financing
- An installment agreement that may stop future levy actions
- An Offer in Compromise if you qualify
- Currently Not Collectible (CNC) status based on financial hardship
Every case is different, which is why professional guidance is important before communicating with the IRS or agreeing to a payment arrangement.
Why Work With a Tax Attorney Instead of Handling the IRS Yourself?
Many taxpayers don’t contact an attorney until after their wages have been garnished or their bank account has already been frozen.
Working with a tax attorney early can often help preserve more options.
A tax attorney can:
- Review the accuracy of the IRS’s claim
- Explain your legal rights
- Communicate directly with the IRS on your behalf
- Develop a strategy based on your financial situation
- Help prevent additional collection actions whenever possible
- Represent you during appeals and negotiations
Complex collection matters often involve legal issues beyond simply setting up a payment plan. Experienced representation can help ensure those issues are properly addressed.
Helping Individuals and Businesses Throughout Annapolis
Whether you live in the Historic District, Eastport, Parole, Cape St. Claire, or operate a business near downtown Annapolis, IRS collection activity follows the same federal process — but the financial impact is always personal.
Many Annapolis residents have significant assets tied to real estate, small businesses, retirement accounts, or investment portfolios. When the IRS files a federal tax lien or issues a levy, those assets may be affected.
Gabaie & Associates works with individuals, business owners, professionals, retirees, and investors throughout the Annapolis area to address complex IRS collection matters before they become even more disruptive.
Frequently Asked Questions
Can the IRS take my bank account in Annapolis?
Yes. If the IRS issues a bank levy, your financial institution may be required to freeze the funds in your account before transferring them to the government if the debt is not resolved.
How long does an IRS tax lien stay on my property?
A federal tax lien generally remains in place until the tax debt is paid, becomes legally unenforceable, or the IRS releases or withdraws the lien under qualifying circumstances.
Can I sell my home if there’s an IRS tax lien?
Possibly. In some situations, the IRS may approve a lien discharge that allows a property sale to move forward. The process depends on your equity, the sale terms, and the amount owed.
Will hiring a tax attorney stop an IRS levy?
Hiring an attorney does not automatically stop collection activity, but an attorney can often act quickly to request relief, negotiate with the IRS, and pursue available resolution options before additional assets are seized.
Do you help businesses in Annapolis with IRS tax liens?
Yes. Gabaie & Associates represents both individuals and businesses facing federal tax liens, levies, payroll tax issues, and other IRS collection matters.
Speak With an Annapolis IRS Tax Lien & Levy Attorney
IRS collection actions can escalate quickly, but you don’t have to navigate them alone.
Whether you’ve received notice of a federal tax lien, your wages are being garnished, or the IRS has levied your bank account, Gabaie & Associates can help you understand your options and determine the most effective path forward.
If you’re in Annapolis and need help resolving an IRS tax lien or levy, Contact Gabaie & Associates, LLC today at (410) 358-1500 or visit our Contact Page.
