Financial hardships, uncertainty, and changes have become a part and parcel of our lives these days. In these times it has become very important to be able to maintain our financial well-being and protect ourselves against all financial hardships and lead a hassle-free life. An important part of it is making sure that we manage our debts including tax debt. Let us get a brief overview of what a Tax Debt is all about:

What is a Tax debt and why does it occur?

When you forget to pay or file your taxes, there is a mistake in your taxes or the IRS wants to change your taxes and the IRS says you owe money as a result, you have incurred a tax debt. A tax debt occurs when due to a missed tax deadline or incorrect tax filing; a taxpayer ends up owing back taxes to the government. In these circumstances, the Internal Revenue Service or IRS starts following up with the taxpayer and initiates the tax debt collection protocols. The actions under the tax debt collection can wreak havoc on the taxpayers’ financial well-being and can even push the person deeper into the debt. To understand better the actions that the IRS can impose on the taxpayer, let us see what these actions can be.


  • Tax Liens – The Federal Tax Lien is a lien placed on the properties owned by the taxpayer. It notifies the creditors that there are liens placed against the properties owned by the taxpayer in lieu of the tax debt that is owed by them. The lien also asserts IRS has the right to realize the tax debt amount from any sale of these properties. This prevents the taxpayer from selling off their properties and it even applies to any property that the taxpayer acquires during the life of the tax lien. The tax lien can even impact the credit score of the taxpayer in a long run as the credit score of the person drops.
  • Tax Levy – The Tax Levy is the detrimental action initiated by IRS. Under the tax levy, the IRS gets the right to legally confiscate the property and earnings of the taxpayer. These can then be auctioned off or liquidated to pay off the tax debt. The tax levy can apply to commercial and residential properties, as well as assets such as cars, and boats. There is also a Bank levy that can authorize IRS to seize the money that the taxpayer has kept in their bank account. The IRS can also seize intangibles held by others such as wages, retirement funds, account receivables, commission, rental income, etc.
  • Wage Garnishment – The Wage Garnishment is a type of tax levy that specifically targets the wages of the taxpayer. Under the wage garnishment, the IRS issues a notice to the employer of the taxpayer to seize a portion of the wages of the taxpayer and hand it over directly to the IRS. IRS can garnish up to 70% of the wages of the taxpayer under wage garnishment. This can pose serious difficulties for the taxpayer in meeting their basic needs.

However, there is a solution to every problem. You needn’t worry when you have Tax attorneys at your service to help you resolve your tax debt issues. Here’s how a Tax Attorney comes to the rescue at such times of crisis:

 How can a Tax Attorney help?

Most of the time, taxpayers can handle personal income taxes without facing too much trouble. But there are times when a tax attorney can either be a handy resource or a required partner. Tax attorneys help their clients navigate and comply with the complex system of tax codes and legally take advantage of the myriad deductions, credits, and exemptions. The tax debt amount comprises the back taxes amount which is what you originally owe to the government in taxes, however, interest and other penalties on this are imposed by the IRS. The Tax Attorney can help waive off or minimize these amounts. They can also help you form an instalment agreement to repay your tax debt in a schedule that suits your needs. The instalment agreement prevents the IRS from extreme actions such as tax lien, tax levy, or wage garnishment. These actions can even be reversed once the instalment agreement has been made. If you are looking for a reliable tax attorney, you can contact National Tax Attorney for professional advice and guidance on your tax debts issues and disputes. Please click on the link below to contact: