The IRS issues a tax levy without considering the financial implications for the back taxes. And this results in the takeover of your bank accounts, property, and even your paycheck if it comes down to it. If you need help with a tax levy, it’s crucial to act fast.
To stop a tax levy and start a fair payment plan, you should explain your finances to the officials. But you should not do it alone. Because IRS plans require specialist paperwork that is not easy to sort through. And the stakes are high: if you cannot relieve the levy, you could be stuck in dire financial circumstances.
So, who do I call about state tax levy? You have two options.
Who to Call for IRS Representation
When you face a tax issues, time is of the essence. Waiting too long to start a resolution will prolong the time your finances are under stress. Struggling through the process on your own also eats up valuable time, and it lowers your chances of coming to a resolution that best suits you.
Two professionals can represent you in front of the IRS: an enrolled agent and a tax attorney.
1. Enrolled Agent (EA)
If you use a tax service, you might already work with a certified public accountant (CPA). A CPA is someone who can practice at the state level, and they can only practice in the states where they hold a license. As a result, they can file your paperwork in almost every area.
However, a CPA cannot represent you at the federal level.
That is why your first call should not be to a CPA, but to an enrolled agent (EA) who specializes in income tax. EAs are federally recognized tax specialists.
To qualify, an EA must first complete five years of work experience with the IRS. Alternatively, an EA can take a three-part exam. It includes a section on IRS representation, practices, and procedures.
The IRS also requires that those who reach this elite status (the highest credential the IRS awards) complete 72 hours of education every three years and adhere to ethical standards.
What Does an EA Do?
Enrolled agents can help you with the following tax issues:
- Tax evasion
- Tax fraud
- IRS investigations
- Failure to file
- Tax levies
- Tax liens
Because enrolled agents have intimate knowledge of both tax law and how the IRS operates, they help clients leverage themselves for the best outcomes. Besides, they can guide you on how to call the IRS number or find the appropriate IRS phone number to start resolving your issues.
First, an EA completes and files your paperwork. The paperwork required on behalf of many programs is complicated and requires significant knowledge of both the law and IRS practices.
Second, an EA negotiates on your behalf. The IRS always wants to get as much money from the taxpayer as possible at once. The agency is reluctant to accept lower offers or plans that risk failure to repay.
The EA works with the IRS to find common ground that is fair to you and also in your interest.
All official and current EAs register with the IRS. If possible, work with enrolled agents who are also registered with the National Association of Enrolled Agents (NAEA).
2. IRS Tax Attorney
You can also work with an IRS tax levy attorney who can represent you in front of the IRS and in the courtroom. Attorneys have in-depth knowledge of tax and business law and deal with complex legal issues usually reserved for the courtroom.
Tax attorneys can represent you and negotiate on your behalf, with input from a CPA or an EA. So, they are the go-to professionals for levy tax help.
Not every case is right for a tax attorney. In most cases, you will want an attorney if you:
- want to start a business
- run an international business
- know you will leave behind a taxable estate
- need to sue the IRS
- are under criminal investigation
Attorneys best serve clients who have tax levies or liens, along with allegations of tax fraud or other criminal investigations.
A tax attorney knows tax law. But, few have the CPA or EA credentials to work with your finances. You will likely need to hire both an attorney and a CPA.
Feeling Overwhelmed?
How to Choose Representation
How do you find the tax representation? Fortunately, EAs and attorneys are both accountable to the IRS and their state bar, respectively. To find one that is a good fit for your case, start by asking a few questions:
- Where are you licensed?
- How long have you practiced?
- What is your tax specialty?
- Have you had cases like mine? What results did you provide?
- What solution do you propose for my case?
- How much will you charge to implement that solution?
Also, double-check their standing with your state’s bar or the IRS. All members in good standing will be easy to find.
Do not be afraid to ask them for client references. No professional is going to hand over a bad reference, but the references will give you a better idea of what it is like to work with them.
Finally, do not allow anyone to represent you without first entering into an engagement agreement. Your agreement should expressly state what they intend to do and how much it will cost to do it.
Avoid paying a retainer fee of more than 50 percent of the total estimated fee.
Representation Matters in a Tax Levy
An IRS tax levy rarely considers the cost of living and your financial obligations. Its only goal is to secure the money you owe to the IRS.
Your representation will be the difference between fighting for survival and working out an agreement that you can live with.
An enrolled agent has an intimate working knowledge of IRS processes and can both fill out the paperwork and represent you in front of the IRS. If you are in legal hot water, then a tax attorney can aid you both with the IRS and in the courtroom.
Are you staring down an IRS tax levy? You don’t have to do it alone. Call levy experts today, or simply click here to request a no-obligation consultation and learn how you can relieve your tax debt.
