What happens when the IRS or Texas Comptroller suddenly freezes a bank account or seizes assets to satisfy back taxes? Many Texans face federal tax levies each year, leading to frozen accounts, seized property, and unnecessary financial stress. The situation can quickly spiral out of control without swift action.
When tax levies strike, time is critical. A prompt legal response can often stop further collections, negotiate affordable payment plans, or release the levy altogether. Local bankruptcy lawyers familiar with Texas laws can guide residents through these steps, protecting their income and assets.
This article outlines how taxpayers can respond to tax levies, what legal tools are available, and why professional representation makes a difference.
Understanding Tax Levies and Their Impact
A tax levy is a legal seizure of assets to satisfy unpaid taxes. Unlike a lien, which is simply a claim against property, a levy actually takes money or property to settle the debt. In Texas, levies most commonly affect:
- Bank Accounts– Funds are frozen and removed to cover the tax debt.
- Personal Property– Vehicles, equipment, or other valuable items may be seized.
- Accounts Receivable– For business owners, incoming payments from customers can be redirected to the IRS.
Ignoring a levy notice rarely makes it go away. In fact, waiting too long may result in multiple levies and greater losses.
Legal Options for Responding to a Levy
There are several effective steps taxpayers can take when facing a levy. The right approach depends on the size of the tax debt, income level, and other financial obligations.
Requesting a Collection Due Process Hearing
Taxpayers have a limited time to request a hearing to challenge the levy or propose a payment arrangement. This can temporarily stop collection while the case is reviewed.
Negotiating Payment Arrangements
- Installment Agreements:Setting up monthly payments can stop future levies.
- Offer in Compromise:In certain cases, it may be possible to settle the tax debt for less than the full amount owed.
Seeking Bankruptcy Relief
Bankruptcy may discharge some older tax debts or at least pause collections while the case is active. A skilled attorney can review whether Chapter 7 or Chapter 13 bankruptcy could provide meaningful relief from tax levies in Corpus Christi.
Requesting a Levy Release
If the levy causes extreme financial hardship, taxpayers can request a release, which may restore access to bank accounts or property.
Protecting Assets Before They Are Seized
Acting quickly is key. Consulting an attorney as soon as a levy notice arrives helps ensure:
- Prompt filing of requests for hearings or appeals
- Review of tax account transcripts for errors
- Identification of bankruptcy options where appropriate
- Protection of exempt property under Texas law
Take Back Control of Your Finances
Facing a tax levy can be stressful — but it does not have to mean losing everything. Residents who want relief from tax levies in Corpus Christi can turn to experienced legal help. The Law Office of Joel Gonzalez assists clients in protecting their assets, stopping aggressive collection actions, and negotiating workable payment solutions.
Contacting the firm is a smart first step for anyone seeking to stop a levy and regain control of their income.
