Navigate IRS Liens, Levies, and Garnishments Effectively

When dealing with the IRS, few things are more intimidating than receiving notice of a lien, levy, or wage garnishment. These collection actions are serious, but understanding what they mean — and how professional representation from Books, Taxes & More, can help — can make the difference between financial chaos and a manageable solution.

Understanding IRS Collection Actions

Before diving into strategies for dealing with the IRS, it’s important to understand the collection tools they use:

1. IRS Liens

A lien is a legal claim against property (such as your home, car, or bank accounts) to secure payment of a tax debt. The IRS files a public document called a Notice of Federal Tax Lien, which can affect the ability to sell or refinance property.

Key Points About Liens:

• A lien does not mean the IRS immediately seizes your property.

• It protects the government’s interest in your assets.

• Ignoring a lien can lead to more aggressive collection efforts.

2. IRS Levies

A levy is different from a lien. It actually seizes property to satisfy the debt. The IRS can take money directly from bank accounts, garnish wages, or even seize physical assets like cars or real estate.

Key Points About Levies:

• Levies are a last resort after the IRS sends multiple notices.

• A taxpayer typically receives a Final Notice of Intent to Levy and has 30 days to appeal.

• Immediate action is necessary to prevent or release a levy.

3. Wage Garnishments

When the IRS issues a wage garnishment, a portion of the paycheck is sent directly to the IRS before paying the employee. This can leave you with just enough income to cover basic living expenses, which can be financially devastating.

Key Points About Garnishments:

• Garnishments continue until the debt is paid in full, a release is obtained, or a settlement is reached.

• Some income, like certain retirement benefits and Social Security, may be partially protected.

How an Enrolled Agent Can Help You

Facing IRS collections without expert help is like going to court without a lawyer — technically possible, but risky and overwhelming. Here’s how a qualified enrolled agent can make a major difference:

1. Protect Your Rights

An enrolled agent understands the rules the IRS must follow. They make sure the IRS does not overstep, ensuring the taxpayer is treated fairly and all rights are protected.

2. Negotiate Relief Options

An enrolled agent can help one explore options such as:

• Installment Agreements: Setting up manageable monthly payments.

• Currently Not Collectible Status: Pausing collection actions to give the taxpayer time to get their financial house in order.

• Offer in Compromise: Settling your tax debt for less than the full amount owed when the possibility of full or even partial payment of the debt is extremely low.

3. Stop Aggressive Collection Actions

Often, the involvement of an enrolled agent can halt or pause liens, levies, or garnishments while a resolution is being worked out. They can also file appeals or request Collection Due Process hearings to provide additional time and leverage.

4. Reduce Stress

Perhaps most importantly, an enrolled agent will take over communications with the IRS, keeping the client from making costly errors and keeping emotions out of the discussion.

Final Thoughts

IRS collections can feel overwhelming, but taxpayers don’t have to face them alone. Liens, levies, and wage garnishments are serious, but with the right strategy, and the right enrolled agent,  there is a path to recovery.

If you’ve received notices from the IRS or are already facing collection actions, don’t wait. Contact Steve at Books, Taxes & More, Enrolled Agent who can help you understand your options and start protecting your assets and peace of mind today.