State Tax Liens, Levies and Garnishments 

Understanding State Tax Liens: Protecting Your Property and Credit

A state tax lien is a formal legal claim by the government against your property. It acts as a public notice to creditors that you owe back taxes. While a lien doesn’t involve the immediate seizure of your house or car, it “encumbers” everything you own, including assets you acquire after the lien is filed.

The Consequences of a Tax Lien

• Credit Damage: Liens can remain on your record for 7 to 10 years, making it nearly impossible to secure loans, credit cards, or favorable interest rates.

• Real Estate Hurdles: You cannot sell or refinance a home without addressing the lien, as it prevents the transfer of a “clear title” to a buyer.

• Public Record: Your tax debt becomes public information, which can be embarrassing and damaging to your personal or professional reputation.

Stopping State Tax Levies and Wage Garnishments

While a lien is a claim, a levy is an action. This is when the state or IRS actually takes your property to satisfy the debt. This most commonly manifests as:

• Wage Garnishment: A continuous levy where your employer is required to send a portion of your paycheck directly to the tax agency until the debt is resolved.

• Bank Levies: The government can freeze your bank account and seize the funds within. Once the bank sends that money to the IRS or state, it is extremely difficult to recover.

• Asset Seizure: In extreme cases, revenue officers can seize and auction personal property, vehicles, or even business equipment.

Can a Levy Be Released?

Yes. If you are already facing a garnishment, it isn’t too late. We work to bring you into “compliance” by filing back returns and negotiating releases. A wage garnishment can often be stopped immediately once an Installment Agreement or Currently Not Collectible status is established.

Effective Strategies for Tax Debt Resolution

Our Houston-based tax professionals serve clients across the country by navigating the complex programs designed to provide relief. We don’t just “manage” the debt; we aim to resolve it through the best available channel:

1. Offer in Compromise (OIC)

This allows you to settle your tax debt for less than the full amount you owe. While the IRS and state agencies have strict criteria, we use a proprietary assessment to determine if an OIC is a viable “ballpark” solution for you.

2. Installment Agreements & Partial Payment Plans

If you cannot pay in full, we can negotiate a monthly payment plan that fits your financial reality. In a Partial Payment Installment Agreement, the government may agree to accept smaller payments until the statute of limitations on the debt expires.

3. Currently Not Collectible (CNC) Status

If paying your taxes would cause a severe financial hardship, we can petition to have your account placed in CNC status. This stops all collection activities and levies until your financial situation improves.

4. Lien Subordination or Withdrawal

If you need to refinance your home to pay off your taxes, we can request subordination, where the government allows another creditor to move ahead of them in priority. In some cases, we can even seek a withdrawal, which treats the lien as if it were never filed.

Why Choose Our Houston Firm for Your Nationwide Tax Defense?

Tax laws vary by state, and the IRS operates under a complex federal code. You need a partner who understands the “Due Process” rights available to you. From filing IRS Form 12153 for a Collection Due Process hearing to challenging “for cause” penalty assessments, we provide the aggressive advocacy needed to stand up to the government.

Don’t wait until your next paycheck is seized. Whether you are in Texas or anywhere else in the U.S., our team is ready to help you reclaim your financial freedom.