What is a tax levy? A tax levy is an illegal seizure of your personal assets to pay off a tax owed to the government. A tax levy generally involves the seizure of a property to repay tax debt owed on a taxpayer by the government. This can be a very frightening and expensive step for anyone to take.
Many taxpayers feel scared and intimidated when faced with a large tax bill. There are many good reasons for not paying a tax, but there are also many reasons to consult a qualified tax attorney tax resolution. When a tax is properly paid, it does not harm the economy. However, a huge tax bite can have serious and far-reaching effects that could directly or indirectly affect many areas of a taxpayer’s life.
One of the most common issues with overpaying a tax is the “pay or face” mentality. A tax imposed as a penalty for non-payment encourages people to try to pay as little as possible. This mentality is counterproductive and often leads to further penalties or interests that are added to the original levy.
The “pay or lose” mentality also helps contribute to the high number of people who don’t fully understand their tax liability and don’t act on it. When a tax is imposed upon someone’s income or assets, many people who receive the initial notice don’t act on it until they reach a financial point where they are unable to pay. Even then, many of these individuals may not realize the amount of money they owe. When in doubt, it is always better to pay something than nothing at all.
A tax levied as a penalty for non-payment is very different from a tax due for criminal behavior. For example, a person who willfully raps someone else’s windshield is guilty of criminal behavior. However, a civil penalty can be applied for criminal behavior (e.g., battery). In this case, the liable party’s gross revenue should be increased by a reasonable tax liability in order to pay for the damages. If the liable party intentionally rips someone else’s windshield without impunity, the liable party will have to make payment even after the damage has been repaired. By contrast, if a tax liability has been improperly levied, and the tax is intended to be an asset enhancement to ensure long-term success, there is no need to make payment until the asset has increased in value.
A tax levy attorney has the skills and experience to help individuals navigate the complex world of taxation law. For details about hiring a tax levy attorney, check out www.coloradotaxattorneys.net/tax-levy-lawyer-colorado-springs-co/. Tax Liability Attorneys have extensive knowledge of the tax code and related statutory language. These qualified professionals can provide sound legal advice and legal representation in situations where a person’s tax liability has been improperly enforced. When a tax liability is the issue, retain a trusted tax liability attorney to act on the individual’s behalf to resolve the issue quickly, effectively and within the confines of the law.