The IRS and California tax agencies have numerous tools which they can use to collect unpaid taxes. One of the most dangerous of these tools is a tax levy (used by IRS) or an Order to Withhold (“OTW”)(used by California tax agencies). IRS and California tax agencies can use a levy or OTW to attach or seize almost any type of asset, including bank and brokerage accounts, wages, commissions, motor vehicles and other assets. Laws which exempt property from the collection actions of ordinary creditors often do not apply to the IRS or California tax agencies. Thus, under certain circumstances, even retirement accounts and other assets which people think are “exempt” from the reach of creditors may be subject to collection action by the IRS and/or California tax agencies. Our firm has extensive experience in effectively representing individuals, shareholders, partners, members, corporations, LLC’s, partnerships, estates, and others in minimizing the risk of levy action and in seeking a modification or release of levies and OTWs which were previously issued.
In addition, both the IRS and California tax agencies sometimes levy on the assets of a third party in an effort to collect taxes owed by the original taxpayer. Third parties who have property which has been levied on or seized to collect taxes owed by another party have the ability to challenge the levy action. This is known as bringing a wrongful levy claim or a wrongful levy suit. Our firm is experienced in handling both administrative wrongful levy claims and wrongful levy actions brought in court.