We live in times when we continuously face financial hardships, uncertainty and changes. In these times it is very important that we should be able to maintain our financial well-being and protect ourselves against all financial hardships. An important part of it is making sure that we manage our debts including tax debt. 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 having 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, boats. There is also 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 – 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.

How can a Tax Attorney help?

 The tax debt amount comprises of 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 installment agreement to repay your tax debt in a schedule that suits your needs. The installment agreement prevents the IRS from extreme actions such as tax lien, tax levy, or wage garnishment. These actions can even be reversed once the installment 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 debt.