Knowing Your Rights with Tax Collection Law
The government has the right and ability to extract taxes from citizens. At the same time, you have certain rights that must be protected, as well. For people who are running up against a big tax debt, it pays to know what the government can and cannot do. Good lawyers often help their clients through these difficult times, giving them guidance on the best ways to manage the situation and come out with a clean bill of financial health on the other side. Tax collection law can be a challenge to understand for those who go it alone.
The requirement to provide notice
One of the good thing about owning money to the IRS is that you will get multiple bites at the apple. If you owe money to a creditor, they may foreclose or repossess quickly. They might file a lawsuit in a hurry without giving you a chance to remedy the situation. The IRS will provide you with multiple notices, and in fact, will give you a chance to enter into an agreement to pay back the debt. This is a good thing for people who might be overwhelmed with their tax liability.
The ability to levy assets and file liens
One of the great powers of the federal government is its ability to file federal tax liens and place levies on assets. If a lien is filed against you, the government can hold your tax refunds and take other action. Levies on assets can make it difficult for you sell those assets or borrow money on them.
Fighting IRS action
Good lawyers help their clients resist these federal tax actions. In many cases, individuals use their lawyers to negotiate with the federal government. In other cases, people can contest the tax debt. When the federal government sends notice that a person has an outstanding tax responsibility, that person always has the chance to contest the legitimacy of the debt. This is a good option up front and can provide you with time while you figure out the best way to go forward.
