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State Tax Levy
If you owe your state back taxes then you're understandably concerned about the possibility of a state tax levy. A tax levy is the state's way of forcibly seizing your assets. This levy may arrive in the form of a garnishment of your wages, seizure of your bank account funds, or collection against another one of your assets.
It's important to note that there is a difference between when the state places a lien or judgment on your property versus a tax levy. The lien is not the actual seizure of any assets, it's merely a way to let creditors know that they have a right to your assets. They are both potentially embarrassing whether it's your employer being notified of your tax debt or the public knowledge that a tax lien has been filed against you.
There are specific strategies to deal with a state tax levy, such as understanding how the collection process works. Typically the state will notify you of your debt and begin a series of notices with increasingly threatening language.
This process, by the state authorities, must be adhered to prior to issuing a levy against you. Thankfully it's not the first thing the state does when determining you have a tax debt, so it gives you time to resolve your issues before a levy can occur.
While it is important to understand the process by which the state sets up your account for a levy, it's of even greater importance to resolve the overall tax debt issue. If you get in compliance and are proactive about your tax debt there are ways to avoid the headache of a tax levy all together.
Whether you are facing, or trying to release, a state tax levy, or trying to prevent a tax levy, it's recommended that you have a firm strategy in place. Our clients that have come to us with a tax levy in place all know that it can be a maddening experience to deal with tax levies. Resolving these types of issues are what we do day-in, day-out for people all over the country.
Having an honest and compassionate licensed tax professional on your side guarantees that you'll get the best possible outcome available. It's never too late to be proactive about your tax debt.