We are often asked about tax audits liens and levies. When you are delinquent on your taxes, there are a number of severe penalties with which you can be hit. The three types of penalties that you have probably heard about are tax audits, tax liens and levies.
We’ve talked about tax audits before, and it is an issue that many people have to deal with proactively in order to fix. We represent our clients in an audit with the IRS, and the solution could end up being far better than originally anticipated. However, but you have to manage the IRS audit in a strategic and efficient manner. This is why it is so important to work with an Allen Barron tax attorney if you are facing an IRS or California tax audit.
Tax audits liens and levies interrupt your life and your ability to conduct financial and property transactions. Tax liens are very disruptive to a person’s life. A lien attaches to real or personal property and must be fully satisfied before the underlying property may be sold. Those who face tax liens find it nearly impossible to sell a home or major piece of property, obtain new lines of credit or basically make any large-scale financial moves while the lien is in effect. The lien will stay with your name until you have paid off your back taxes.
Tax levies are authoritative sanctions which allow the Internal Revenue Service or the State of California to seize your property or funds in a bank or financial account in order to make up for tax debt. This can be a complex and confounding punishment which many people don’t know how to deal with. How are you supposed to work through the issue and repay debts if your accounts are frozen and your assets are taken?
As with any punishment or consequence that involves delinquent taxes, you should consult with Janathan Allen, an experienced tax attorney who can work to help you out of your predicament. There are specific strategies for tax audits liens and levies which allow our clients the time and space to work through these challenges and resolve them.