Federal tax problems are bound to happen. The 1040EZ, which is the simplest form available, has 33 pages of instructions. Since the IRS sends out well over 8 billion pages of instructions and forms each year, it is easy to see why some seek federal tax relief. From a federal tax levy to other common federal tax problems, it takes the experience of a professional to sort it out.
Under current U.S. Federal law, a tax levy is an administrative action by the IRS under statutory authority to seize property to satisfy tax liabilities. This is done to collect from people who owe federal taxes, without having to go to court.
Because of the powers that the IRS has, there number of federal tax problems one may face are immense. Under the powers given to the IRS in the Internal Revenue Code, the IRS can levy upon bank accounts, social security payments, wages, insurance proceeds, real property, accounts receivables and even a personal residence. Federal tax problems like these need professional advice, especially if they have been building for years.
Business owners should also be aware that firing a worker in order to avoid handling a levy can be a criminal offense. Federal laws provide for up to a year in prison and a fine of up to $1,000 for an employer that willfully fires an employee in connection with the garnishment employee earnings. No matter what they are, no one should attempt to handle federal tax problems on their own.