Many people spend years sacrificing purchases, trips, and other things they want so they can contribute to retirement funds to prepare for the future. Pensions, 401K accounts, and IRA accounts are all valuable assets that you may plan to rely on once it is time to stop working. However, these plans for retirement can suffer if your savings are threatened by a tax levy by the Internal Revenue Service (IRS). With a levy, the IRS can seize your savings and drain your accounts quickly to satisfy any unpaid tax debts that you owe.
How can the IRS Levy Your Retirement Accounts?
When you owe back taxes, the IRS not only has the right to seek payment but actually has an obligation to do so. United States tax laws give the IRS many different legal tools to collect tax debts and one of these tools is a levy on your assets and accounts, which include certain types of pensions and retirement income. Examples of accounts the IRS can levy include the following:
- Employee retirement accounts
- Self-sponsored retirement accounts
- Social security benefits
- Military pensions
- Civil service pensions
- Railroad worker benefits
On the other hand, examples of retirement accounts or benefits that are off-limits to IRS tax levies include:
- Workers’ compensation benefits
- Withdrawals from retirement accounts sponsored by an employer
- Public assistance benefits
- Elderly Supplemental Social Security benefits
In many cases, the IRS will first levy your future tax refunds or savings or checking accounts before it will go after your retirement benefits or savings. However, these accounts are levied in many cases so you should always be concerned about protecting your retirement funds if you owe back taxes.
The good news is that an experienced tax relief attorney can help you find ways to settle and pay your tax debt to either prevent an IRS levy or release an existing IRS levy. By facing your tax debt now, you can rest assured that your retirement savings will be available when you need them.
Call a Chicago IRS Levy Release Attorney for Assistance Today
If you need assistance with any type of tax debt anywhere in the United States, call an experienced IRS relief attorney as soon as possible. Contact Attorneys Tax Relief at 800-819-6866 today.