If the IRS has filed a tax lien or is threatening to levy your wages, bank account, or other assets, acting quickly can help protect your finances. An experienced IRS tax liens and tax levies attorney can explain your options, communicate with the IRS on your behalf, and work toward a resolution before collection actions become more serious.
Whether you live or own a business in Rockville, addressing IRS collection issues early often provides more options before assets are seized.
Need help now? Contact Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page for a free consultation.
What Is the Difference Between an IRS Tax Lien and an IRS Tax Levy?
Although people often use these terms interchangeably, they are different collection actions.
| IRS Tax Lien |
IRS Tax Levy |
| A legal claim against your property because of unpaid taxes |
The IRS actually takes money or property to satisfy the debt |
| Can affect your ability to sell or refinance property |
Can garnish wages or seize bank funds |
| May attach to current and future property |
Removes assets after required notice periods expire |
Essentially, a tax lien secures the government’s claim, while a tax levy is the collection action itself.
A levy often follows when a taxpayer does not respond to IRS notices or fails to resolve outstanding tax debt.
What Property Can the IRS Levy?
The IRS has broad collection authority.
Depending on your circumstances, the agency may levy:
- Bank accounts
- Wages
- Self-employment income
- Retirement income
- Rental income
- Investment accounts
- Accounts receivable for businesses
- Vehicles
- Certain business assets
In some cases, the IRS may also seize real estate or other valuable property.
How Does an IRS Tax Lien Affect Rockville Homeowners?
For many Rockville residents, a home is one of their largest financial assets.
An IRS tax lien does not automatically force the sale of your home, but it can create significant complications.
A federal tax lien may:
- Attach to your home and other real property
- Complicate refinancing
- Create issues when selling property
- Reduce available equity after a sale
- Affect future property acquisitions while the lien remains in effect
Resolving a tax lien before selling or refinancing can help avoid costly delays.
Can the IRS Garnish My Wages?
Yes.
If certain legal requirements are met, the IRS can levy wages directly from your employer.
Unlike many other creditors, the IRS generally does not need to obtain a court judgment before issuing a wage levy. Instead, it must follow federal tax collection procedures, including providing required notices and an opportunity to resolve the debt first.
A wage levy can significantly affect household finances, regardless of where you work. In some situations, an attorney may be able to negotiate alternatives before wage garnishment begins or work toward having an existing levy released.
Can the IRS Freeze My Bank Account?
Yes.
If the IRS issues a bank levy, your financial institution will generally freeze the funds in your account for 21 days before sending them to the IRS.
That waiting period can be extremely important.
During those 21 days, it may be possible to:
- Resolve the underlying tax issue
- Request release of the levy
- Establish an installment agreement
- Demonstrate financial hardship
- Pursue another collection alternative
Waiting until after the funds have been transferred often limits your available options.
Why Acting Early Matters
Many taxpayers wait until they receive a Final Notice of Intent to Levy before seeking legal advice.
By that point, deadlines may already be approaching.
Earlier intervention may allow you to:
- Prevent a levy before assets are seized
- Negotiate directly with the IRS
- Request a payment arrangement
- Explore an Offer in Compromise if appropriate
- Correct inaccurate tax assessments
- Minimize additional penalties and interest
The sooner you understand your options, the more flexibility you may have in resolving the matter.
What Happens Before the IRS Issues a Tax Levy?
In most cases, the IRS cannot immediately seize your wages or bank account. Before taking collection action, the agency generally follows a series of required steps.
The collection process often looks like this:
- The IRS assesses the tax and sends a bill.
- Additional balance-due notices are mailed if the debt remains unpaid.
- The IRS files a Notice of Federal Tax Lien in some cases.
- The IRS issues a Final Notice of Intent to Levy and explains your appeal rights.
- If the issue is not resolved, the IRS may levy wages, bank accounts, or other assets.
Receiving a Final Notice of Intent to Levy does not necessarily mean your assets will be seized immediately, but it does mean time is limited. Taking action before the deadline may preserve important rights and open the door to additional resolution options.
Can an IRS Tax Levy Be Stopped?
Often, yes.
The best solution depends on your financial situation, the amount of tax owed, and where you are in the IRS collection process.
Possible options include:
- Establishing an installment agreement
- Requesting Currently Not Collectible (CNC) status because of financial hardship
- Submitting an Offer in Compromise, if you qualify
- Paying the balance in full
- Correcting an incorrect tax assessment
- Requesting an appeal when appropriate
If the IRS has already issued a levy, acting quickly may improve your chances of having it released before additional assets are taken.
What Is a Collection Due Process (CDP) Hearing?
If you receive a Final Notice of Intent to Levy or notice that the IRS has filed a federal tax lien, you may have the right to request a Collection Due Process (CDP) hearing.
A CDP hearing allows you to challenge certain collection actions or propose an alternative resolution before the IRS proceeds.
Depending on your circumstances, a hearing may allow you to:
- Dispute whether the collection action is appropriate
- Request an installment agreement
- Discuss an Offer in Compromise
- Raise certain defenses
- Explore other collection alternatives
Missing the deadline to request a hearing can significantly limit your appeal rights, making it important to review IRS notices as soon as they arrive.
How Can an IRS Tax Attorney Help?
IRS collection cases involve more than completing forms. Every situation is different, and the right strategy depends on your financial circumstances, tax history, and collection stage.
An experienced tax attorney may be able to:
- Review IRS notices and explain your options
- Communicate directly with the IRS on your behalf
- Determine whether collection procedures were followed correctly
- Negotiate payment arrangements
- Seek release of qualifying liens or levies
- Help protect your rights throughout the collection process
Whether you’re responding to your first IRS notice or dealing with an active levy, understanding your options can make the process more manageable.
Why Rockville Taxpayers Choose Gabaie & Associates
IRS collection matters require solutions tailored to each taxpayer’s financial circumstances. IRS collection matters often require solutions tailored to the taxpayer’s financial circumstances rather than a one-size-fits-all approach.
Gabaie & Associates helps individuals and businesses address IRS collection issues involving:
- Federal tax liens
- IRS tax levies
- Wage levies
- Bank account levies
- Payroll tax matters
- Installment agreements
- Offers in Compromise
- IRS appeals
- Collection defense strategies
Every case begins with understanding the facts, reviewing available options, and working toward the most appropriate resolution based on your circumstances.
Frequently Asked Questions
Can the IRS take money directly from my bank account?
Yes. If the IRS issues a bank levy, your financial institution generally freezes the funds for 21 days before sending them to the IRS. During that time, you may still have options to resolve the matter or request that the levy be released.
Can the IRS garnish my paycheck without going to court?
Yes. Unlike many creditors, the IRS generally does not need a court judgment before issuing a wage levy. However, it must first follow federal collection procedures and provide required notices.
Will an IRS tax lien affect my credit?
Federal tax liens no longer appear on most consumer credit reports, but they may still affect your ability to sell property, refinance a mortgage, or obtain certain financing.
Can I sell my home if the IRS has filed a tax lien?
Possibly. However, the lien may need to be addressed before or during the sale. An attorney can explain how a lien may affect your specific transaction.
What happens if I ignore IRS collection notices?
Ignoring IRS notices can allow the collection process to continue, potentially resulting in tax liens, wage levies, bank levies, or other enforcement actions. Responding early often provides more resolution options.
Can I negotiate with the IRS if I can’t pay my tax debt?
Yes. Depending on your financial circumstances, you may qualify for an installment agreement, Currently Not Collectible status, an Offer in Compromise, or another collection alternative.
Can Gabaie & Associates help if I live or own a business in Rockville?
Yes. Gabaie & Associates represents individuals and businesses in Rockville facing IRS tax liens, levies, and other federal tax collection issues.
Where is your office serving Rockville taxpayers?
You can learn more about the firm’s office location and service area by visiting the Rockville office page or contacting Gabaie & Associates to discuss your situation.
Speak With a Rockville IRS Tax Liens & Tax Levies Attorney
If you’re facing an IRS tax lien, wage levy, bank levy, or other collection action, you don’t have to navigate the process alone. Understanding your options early may help protect your income, assets, and financial future.
Are you in Columbia and dealing with IRS tax liens or tax levies? Contact Gabaie & Associates, LLC today at (410) 358-1500 or visit our Contact Page to discuss your IRS tax collection matter with an experienced tax attorney serving Rockville.
