Law Offices of Beverly Winstead Law Offices of Beverly Winstead 2026-06-08T20:23:43Z https://www.lawofficesofbeverlywinstead.com/feed/atom/ WordPress /wp-content/uploads/sites/1504113/2024/07/cropped-Site_Graphic-32x32.jpg by Law Offices of Beverly Winstead <![CDATA[Why Summer Is When IRS Problems Quietly Get Worse]]> https://www.lawofficesofbeverlywinstead.com/?p=254442 2026-06-08T20:23:43Z 2026-06-08T20:23:43Z For many taxpayers, the end of tax season brings a sense of relief. Returns have been filed, deadlines have passed, and people naturally want to move on from thinking about taxes altogether. But for individuals and business owners with unresolved tax issues, summer is often when financial problems quietly become more serious. The stress may temporarily fade after April, but IRS balances, notices, penalties, and unresolved filings do not simply disappear with time. In fact, delaying action during the middle of the year can often make a manageable situation far more difficult later. At the Law Offices of Beverly Winstead, we regularly speak with taxpayers who intended to “deal with it later,” only to discover months afterward that their situation had become more complicated, more expensive, and more stressful than expected.

Why People Delay Addressing IRS Problems

One of the most common reasons taxpayers avoid dealing with IRS issues is emotional exhaustion after tax season. Many people feel overwhelmed after filing their returns, especially if they:
  • owe more than expected, 
  • have unfiled returns, 
  • received IRS notices, 
  • or are already experiencing financial strain. 
Others assume there is nothing they can realistically do if they cannot immediately pay the balance in full. As a result, summer often becomes a period of avoidance. Notices go unopened. Deadlines pass. Financial planning gets postponed. Unfortunately, avoidance rarely improves an IRS situation.

Penalties and Interest May Continue Accruing

One important fact taxpayers should understand is that unpaid IRS balances generally continue accumulating penalties and interest until the debt is resolved. The IRS typically charges:
  • interest on unpaid taxes, 
  • a failure-to-pay penalty for unpaid balances, 
  • and, in some cases, additional penalties depending on the circumstances. 
Over time, this can significantly increase the total amount owed. While every taxpayer’s situation is different, waiting several additional months to address a balance may reduce financial flexibility and increase long-term financial pressure. This is one reason why proactive action during summer months can be extremely important.

Ignoring IRS Notices Can Limit Your Options

Many taxpayers underestimate the importance of responding to IRS correspondence promptly. IRS notices often contain:
  • important deadlines, 
  • requests for documentation, 
  • payment options, 
  • or warnings about potential collection activity. 
Ignoring notices does not stop the IRS process from moving forward. Depending on the circumstances, unresolved tax matters can eventually lead to:
  • additional penalties, 
  • tax liens, 
  • levies, 
  • wage garnishments, 
  • or more aggressive collection actions. 
Not every case progresses this far, but early intervention generally provides taxpayers with more opportunities to resolve issues strategically before matters escalate.

Summer Is Often the Best Time to Regroup Financially

Although many people think of tax planning as something that only happens during filing season, mid-year is often one of the most valuable times to reassess finances. Summer provides an opportunity to:
  • review current tax obligations, 
  • organize financial records, 
  • evaluate estimated tax payments, 
  • address bookkeeping problems, 
  • resolve unfiled returns, 
  • and explore IRS resolution pathways before year-end pressure begins. 
For business owners and self-employed individuals, this can be particularly important. By mid-year, many taxpayers have a clearer understanding of:
  • annual income trends, 
  • business performance, 
  • cash flow challenges, 
  • and potential tax exposure. 
This information can help guide smarter financial and tax decisions for the remainder of the year.

Many Taxpayers Have More Options Than They Realize

Another common misconception is that taxpayers only have one solution: paying the IRS balance immediately in full. In reality, the IRS offers several potential resolution pathways depending on a taxpayer’s financial condition and overall compliance status. Depending on eligibility, options may include:
  • installment agreements, 
  • temporary collection relief, 
  • Offer in Compromise programs, 
  • penalty relief in qualifying situations, 
  • or other structured resolution approaches. 
However, qualification depends on multiple factors, including:
  • income, 
  • assets, 
  • filing compliance, 
  • expenses, 
  • and overall ability to pay. 
This is why strategic evaluation matters before taking action. A resolution strategy that may work for one taxpayer may not be appropriate for another.

Waiting Until Year-End Often Creates Additional Stress

One pattern we frequently see is taxpayers postponing IRS issues throughout summer and fall, only to panic once the holidays and year-end deadlines approach. By that point:
  • balances may have increased, 
  • notices may have escalated, 
  • and fewer proactive planning opportunities may remain. 
Addressing issues earlier in the year generally allows for:
  • better financial planning, 
  • more thoughtful decision-making, 
  • reduced emotional stress, 
  • and greater preparation before the next filing season arrives. 

Financial Recovery Begins With Action

Many taxpayers avoid addressing IRS concerns because they fear the situation is already beyond repair. In reality, taking the first step toward understanding your options is often one of the most important parts of the process. Financial recovery rarely happens overnight. It usually begins with:
  • understanding the situation clearly, 
  • organizing financial information, 
  • evaluating available options, 
  • and creating a realistic strategy moving forward. 
The earlier these conversations happen, the more opportunities taxpayers may have to regain financial control and reduce uncertainty.

A Strategic Approach Matters

IRS matters should never be approached with a one-size-fits-all mindset. Every financial situation is different, which is why careful review and individualized planning are important when addressing tax concerns. At the Law Offices of Beverly Winstead, we work closely with clients to:
  • evaluate their financial circumstances, 
  • explain available IRS resolution options, 
  • address compliance concerns, 
  • and develop thoughtful strategies designed around long-term financial stability. 
Summer may feel like a time to put tax stress aside, but for unresolved IRS issues, delaying action can quietly make problems more difficult over time. In many situations, proactive action now can help prevent significantly greater financial pressure later.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[Mid-Year Reset: A New Season for Smarter Tax Planning]]> https://www.lawofficesofbeverlywinstead.com/?p=254441 2026-05-28T13:53:59Z 2026-05-28T13:53:59Z When I sit down with clients in my office, especially around this time of year, I often hear a version of the same sentence: “I thought taxes were behind me.” It is an understandable assumption. You filed your return, you met the April deadline, and mentally, you are ready to move on. But from a legal and strategic standpoint, this is not the end of your tax story for the year. In many ways, it is the beginning of the most important phase. Tax planning is not something that should happen in April. By then, most of the decisions that shape your tax outcome have already been made. Income has been earned, expenses have been incurred, and opportunities—some of them significant—may already be out of reach. This is why I often refer to this period as a “mid-year reset.” It is a second opportunity. A new season. And for many taxpayers, it is the moment where we can shift from reacting to planning. Over the years, I have seen a clear pattern. Individuals and business owners come to me frustrated, not necessarily because they did something wrong, but because they did not have a strategy in place early enough. They are surprised by what they owe. They are unsure why their tax liability looks the way it does. And perhaps most importantly, they feel like they had no control over the outcome. The truth is, in many cases, they could have had control. But control in tax matters requires timing. Mid-year is where timing works in your favor. At this point in the year, we have enough information to understand where you are heading financially, but we also still have time to influence that direction. That combination is powerful. It allows us to look at your income, your business activity, your financial decisions, and ask a very different question than the one asked during tax season. Not “What happened?” But “What can we still change?” For some clients, that conversation begins with something as straightforward as income. Perhaps their earnings have increased compared to last year, or the structure of their income has changed. This is especially common for self-employed individuals or those receiving 1099 income. Without proper adjustments, this can lead to underpayment issues or a larger balance due at the end of the year. For others, the issue is not income, but a lack of consistent planning around expenses and deductions. I often see situations where legitimate deductions are either missed or poorly documented, simply because there was no system in place. By the time April arrives, we are trying to reconstruct a year’s worth of financial activity instead of guiding it. And then there are the more complex scenarios, major financial decisions that carry tax consequences. The purchase or sale of property, the launch or restructuring of a business, significant investments. These are not just financial decisions; they are legal and tax decisions as well. When approached without planning, they can create unintended liabilities. When approached strategically, they can be structured in a way that aligns with your broader goals. This is where the role of a tax attorney becomes particularly important. Tax planning is not just about identifying deductions or reducing a number on a return. It is about understanding the law, anticipating how the IRS evaluates your financial position, and structuring your decisions accordingly. It is about creating a strategy that is both compliant and intentional. I often explain it this way: the IRS operates within a system. That system has rules, expectations, and mechanisms for evaluating taxpayers. When you understand that system, you are no longer reacting to it, you are navigating it. Unfortunately, many taxpayers fall into a cycle. Each year feels the same. The same stress, the same uncertainty, the same questions. “Why do I owe this much?” “How did it get to this point?” Without intervention, that cycle tends to repeat itself. A mid-year reset is how we interrupt that pattern. It allows us to step back, assess where you are, and make deliberate adjustments. Sometimes those adjustments are small but meaningful. Other times, they involve a broader shift in how your finances are structured. In either case, the goal is the same: to ensure that when the next tax season arrives, you are not caught off guard. Instead, you are prepared. This approach is particularly valuable for those with more complex financial situations, business owners, freelancers, high-income earners. But in reality, anyone who wants greater clarity and control over their taxes can benefit from it. What I want my clients to understand is this: tax planning is not about perfection. It is about awareness and action. You do not need to have everything figured out today. But you do need to be willing to engage with the process before it is too late to influence the outcome. Mid-year is that window. It is your opportunity to ask better questions, make more informed decisions, and approach the rest of the year with a strategy in place. Because when tax season arrives again, and it always does, the difference between stress and confidence is rarely luck. It is preparation.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[What Happens If You Can’t Pay Your Taxes in Full?]]> https://www.lawofficesofbeverlywinstead.com/?p=254440 2026-05-08T05:37:51Z 2026-05-08T05:37:51Z What Happens If You File But Don’t Pay? When you file your tax return but do not pay the full amount owed, the IRS will begin assessing penalties and interest on the unpaid balance. The two most common consequences include:
  • Failure to pay penalty: Typically 0.5% of your unpaid taxes per month
  • Interest charges: Compounded daily based on federal rates
While filing your return on time helps you avoid the more severe failure, to, file penalty, your balance will still grow over time if left unresolved.

Will the IRS Take Immediate Action?

Not immediately, but they will begin a structured collection process. After processing your return, the IRS will typically send a series of notices outlining:
  • The amount you owe
  • Payment deadlines
  • Available resolution options
If these notices are ignored, the IRS may escalate collection efforts, which can include:
  • Filing a federal tax lien
  • Issuing a levy on wages or bank accounts
  • Seizing certain assets in more severe cases
The key takeaway is this: the earlier you respond, the more options you are likely to have available.

Your IRS Payment and Relief Options

If you cannot pay your taxes in full, the IRS offers several programs that may help you manage or resolve your debt. 1. Installment Agreements (Payment Plans) One of the most common solutions is setting up a monthly payment plan with the IRS. Depending on your financial situation, you may qualify for:
  • Short, term payment plans
  • Long, term installment agreements
This option allows you to pay your balance over time while remaining in good standing, though interest and some penalties may continue to accrue. 2. Offer in Compromise (OIC) An Offer in Compromise allows eligible taxpayers to settle their tax debt for less than the full amount owed. The IRS evaluates:
  • Your income
  • Living expenses
  • Asset equity
  • Future earning potential
Approval is not guaranteed, and the process requires detailed documentation. However, for qualifying taxpayers, it can provide meaningful relief. 3. Currently Not Collectible (CNC) Status If paying your tax debt would prevent you from covering essential living expenses, the IRS may classify your account as Currently Not Collectible. Under CNC status:
  • Collection efforts are temporarily paused
  • Penalties and interest may continue
  • Your financial situation may be reviewed periodically
This is not a permanent solution, but it can provide short, term breathing room. 4. Penalty Abatement In certain cases, taxpayers may request the removal or reduction of penalties. This may apply if you can demonstrate:
  • Reasonable cause (such as illness or unforeseen hardship)
  • A history of compliance
Penalty abatement can significantly reduce the overall amount owed.

Why Taking Action Early Matters

One of the most common mistakes taxpayers make is waiting too long to address their tax debt. Delaying action can:
  • Increase penalties and interest
  • Limit your eligibility for certain programs
  • Trigger more aggressive IRS enforcement
On the other hand, proactive taxpayers who respond early often have more flexibility in choosing the best resolution path.

The Importance of Strategy and Documentation

IRS resolution is not just about choosing an option, it is about presenting your case correctly. Every program requires:
  • Accurate financial disclosures
  • Supporting documentation
  • Strategic positioning of your situation
A poorly prepared submission can result in delays, denials, or less favorable terms.

Moving Forward with Confidence

If you cannot pay your taxes in full, it is important to remember that this situation is manageable, but only if addressed properly. The IRS provides structured pathways to resolution, and with the right approach, you can:
  • Reduce financial pressure
  • Protect your assets
  • Work toward long, term stability
The most important step is the first one: understanding your options and taking action before the situation escalates.]]> by Beverly Winstead <![CDATA[Haven’t Filed Taxes in Years? Here’s How to Catch Up Without Panic]]> https://www.lawofficesofbeverlywinstead.com/?p=254439 2026-04-23T10:55:06Z 2026-04-23T10:48:32Z "Ghost Taxpayer." This is an individual or business owner who, for one reason or another, missed a year of filing, then two, then five, and now feels trapped in a dark room with no visible exit. The fear of a knock on the door, a frozen bank account, or a certified letter from the IRS becomes a daily background noise that erodes your peace of mind and stalls your financial growth. As a tax attorney practicing in Maryland and a clinical instructor at the University of Maryland School of Law, I have spent decades navigating the complexities of the Internal Revenue Code. I have seen taxpayers from all walks of life, from high-net-worth professionals to small business owners, paralyzed by the thought of "coming clean." If you are living with the burden of unfiled returns, I want you to hear this clearly: The IRS actually wants you to come back into the system. As a "Legal Architect," I tell my clients that the tax code is not just a series of traps; it is a framework of "off-ramps" designed for those who have fallen out of compliance. There is a path home, but to avoid the most severe legal and financial pitfalls, you must walk it with a strategic, legal-first approach.

The Infinite Clock: Why "Waiting it Out" is a Legal Fallacy

The most dangerous piece of misinformation circulating among Maryland taxpayers is the idea that if you stay "hidden" long enough, the debt eventually expires. Many taxpayers cite the "10-year rule," believing that after a decade, they are in the clear. Under Internal Revenue Code § 6501, the reality is much harsher: The three-year statute of limitations for the IRS to assess tax, and the ten-year IRS collection statute (the Collection Statute Expiration Date, or CSED), does not start until a formal return is filed. If you haven't filed since 2010, the IRS technically has until the end of time to assess and collect that debt. Staying "under the radar" doesn't mean the debt is going away; it means you are granting the federal government an infinite window of opportunity to seize your assets, garnish your wages, and place liens on your property. Filing your back taxes is the only legal way to "start the clock" on your eventual freedom. By filing, we force the IRS to put a deadline on its own power.

The Danger of the SFR (Substitute for Return)

If you stay silent long enough, the IRS may eventually lose patience and file a return for you. This is known as a Substitute for Return (SFR). While this might sound like the government doing your paperwork for you, it is a financial disaster for the taxpayer. When the IRS creates an SFR, they do not grant you the deductions, business expenses, or credits you are legally entitled to. They assume a "Single" or "Married Filing Separately" status with the lowest possible standard deduction and zero exemptions. This results in the highest possible tax bill the government can justify. When my firm steps in, our first move is to "audit" these government-created returns. We pull your official IRS transcripts to see exactly what income has been reported under your Social Security number or EIN. We then replace those inflated SFRs with accurate, professionally prepared returns that reflect your true business expenses and life situation. This single step, moving from an SFR to an original return, often reduces a taxpayer's debt by 30% to 50% before we even begin negotiations.

Reconstructing the Past Without the Paperwork

The number one reason people stay delinquent is a perceived lack of records. I hear it every week: "Beverly, I’d file, but my records were lost in a move," or "My old bank closed my accounts and I can't get statements from five years ago." As a tax attorney, I have a direct line to the IRS’s internal databases. We can pull several types of transcripts to reconstruct your financial history accurately:
  • Wage and Income Transcripts: These show every 1099, W-2, and 1098 reported to the IRS by third parties.
  • Account Transcripts: These show the history of your tax account, including any SFRs, penalties assessed, or payments made.
  • Tax Return Transcripts: Crucial for seeing what was reported in the years you did file to ensure consistency in our new filings.
We don't need your shoebox of receipts to start your defense. We use the government’s own data to reconstruct your history. By using the IRS’s own information against them, we ensure that your returns are technically compliant and less likely to trigger an audit during the resolution process.

The Voluntary Disclosure Path: Control the Narrative

Coming forward voluntarily is almost always more advantageous than waiting for an IRS Revenue Officer to initiate contact. Through a formal IRS voluntary disclosure, we demonstrate to the government that you are making a good-faith effort to get right with the law. This is where "Reasonable Cause" comes into play. While you will still owe the underlying tax and interest, an attorney can litigate for Penalty Abatement. The unfiled tax returns penalty (Failure to File) can be as high as 25% of the total balance. If we can prove that your failure to file was due to circumstances beyond your control, such as a medical emergency, a death in the family, or natural disasters, we can often have those penalties removed. This turns an unmanageable debt into one that is actually solvable.

The "Six-Year" Rule: How Much Do You Really Need to File?

A common fear is that you have to file every single missing return dating back 20 years. However, IRS Policy Statement 5-133 (contained within the Internal Revenue Manual) generally provides that the IRS only requires the last six years of tax returns to be considered "compliant" for the purpose of entering into a settlement or payment plan. As your legal counsel, I help you determine exactly which years are necessary to file to satisfy the IRS's requirements while minimizing your financial exposure. This targeted approach saves you time, money, and unnecessary legal stress.

Finality: The Goal is a Fresh Start

You cannot settle a debt that hasn't been quantified. You cannot start an installment agreement for returns that don't exist. The first step to sleeping through the night again is achieving technical compliance. Once the returns are filed and the debt is "set," we move into the most critical phase: Negotiation. Whether it is an Offer in Compromise (settling for less than you owe), a Partial Payment Installment Agreement (a plan you can actually afford), or Currently Not Collectible status (stopping collections due to hardship), none of it is possible until the returns are filed.

Closing Thoughts

At the Law Office of Beverly Winstead, we don't judge the years you spent out of the system; we focus entirely on the years ahead of you. Whether you are a high-income professional who fell behind during a difficult season or a small business owner overwhelmed by life's transitions, the solution is the same: Get compliant, get protected, and get moving. Stop looking over your shoulder. The IRS has a playbook, but when you hire a tax attorney, you bring your own. Let’s get you caught up, start your 10-year clock, and finally close the chapter on your back taxes.
Next Steps: Secure Your Strategy Session: If you have multiple years of unfiled taxes, don't wait for a levy notice or a knock on the door. Contact the Law Office of Beverly Winstead today for a confidential review of your transcripts and a plan for total resolution.
]]> by Beverly Winstead <![CDATA[Behind on Taxes in Maryland? Here’s How to Regain Control Fast]]> https://www.lawofficesofbeverlywinstead.com/?p=254430 2026-04-23T11:00:35Z 2026-04-07T10:17:52Z By Beverly Winstead, Esq. As a tax attorney practicing in Maryland and a clinical instructor at the University of Maryland School of Law, I have spent decades navigating the complexities of the Internal Revenue Code. If there is one universal truth I have witnessed in the halls of the IRS and the classrooms of our law school, it is this: Tax debt is not a static problem. It is a living, breathing financial entity that grows every single day it is left unaddressed. To my fellow Marylanders, from the small business owners in Baltimore to the professionals in Prince George’s County, I want to be clear: The IRS is the most powerful creditor in the world. However, the law also provides you with specific, legal pathways to resolution. My goal is to move you from a state of "tax paralysis" to a state of strategic action.

The "Ghost Taxpayer" Trap: Why Silence is Your Most Expensive Mistake

Many taxpayers believe that if they haven't filed in three, five, or even ten years, staying "off the grid" is their best defense. This is a fundamental misunderstanding of federal tax law. In fact, for the delinquent taxpayer, silence is a trap. The IRS has a Collection Statute Expiration Date (CSED), which is generally 10 years from the date of assessment. While this might sound like a reason to "wait it out," there is a catch: The 10-year clock does not start until you file a return. If you haven't filed since 2015, the IRS technically has forever to find you. By staying unfiled, you are granting the government an infinite window to seize your assets. During this period of non-compliance, the IRS utilizes aggressive enforcement tools:
  • The Substitute for Return (SFR): If you don’t file, the IRS may file for you. However, they will not include the deductions, credits, or business expenses you are legally entitled to. They will calculate the highest possible tax bill, often doubling what you actually owe.
  • Notice of Federal Tax Lien: This public document alerts creditors that the government has a legal right to your property. It can devastate your professional reputation and your ability to secure business credit in the DMV area.
  • Wage Garnishment and Levies: Under IRC § 6331, the government can administratively seize money directly from your bank account or garnish a significant portion of your salary without a court order.

The Roadmap to Resolution: Strategic Legal Intervention

Settling tax debt is not a matter of luck or a secret loophole. It is a formulaic legal process. As a "Legal Architect," I build a defense based on the Internal Revenue Manual (IRM), the same guidebook the agents use.

1. The Offer in Compromise (OIC)

The Offer in Compromise allows a taxpayer to settle their debt for less than the full amount. However, the IRS grants these based mainly on your Reasonable Collection Potential (RCP). We calculate your assets and future income minus "allowable living expenses." In Maryland, where the cost of living varies wildly between the Eastern Shore, Baltimore City, Prince Georges and Montgomery County, knowing how to argue for localized housing and transportation standards is where legal expertise becomes critical to a successful settlement.

2. Partial Payment Installment Agreements

For many Maryland business owners, a Partial Payment Installment Agreement is a powerful, underutilized tool. This allows you to pay what you can afford monthly until the 10-year collection statute expires. If structured correctly by a tax attorney, the remaining balance is often extinguished forever once the clock runs out.

3. Currently Not Collectible (CNC) Status

If you are experiencing significant hardship, we can petition to move your account into CNC status. This effectively freezes all collection activity, no levies, no garnishments. While the debt remains, this provides the "breathing room" necessary to get back on your feet without the constant threat of asset seizure.

The Maryland Advantage: Why Local Legal Representation Matters

While the IRS is a federal agency, enforcement often has a local impact. Maryland taxpayers face unique challenges, including state-level tax implications that often mirror federal issues. When we work with clients in the DMV, we aren't just looking at a single year; we are looking at the total financial trajectory of your life and business. In the Low Income Taxpayer Clinic where I teach, I show my students that the "law" is a tool for the vulnerable, not just the wealthy. Whether you are a high-net-worth individual with complex unfiled returns or a professional trying to stop a sudden wage levy, the strategy remains the same: Compliance, Negotiation, and Finality.

Your Strategic Action Plan

If you are staring at a stack of unfiled returns or an IRS notice at your kitchen table, here is your immediate checklist:
  1. Stop Ignoring the Notices: Every "Final Notice" has a 30-day window to request a Collection Due Process (CDP) Hearing. Missing this date can result in the loss of your right to appeal.
  2. Pull Your Transcripts: You cannot negotiate without facts. We pull your official IRS transcripts to see exactly what the government knows about your income before we ever file a single document.
  3. Achieve Technical Compliance: The IRS will not negotiate with anyone who is not "current." This means all missing returns must be reconstructed and filed immediately.
  4. Retain a Tax Attorney: Tax law is a highly specialized field. A general accountant may understand the math, but a tax attorney understands the litigation and negotiation required to protect your constitutional rights.

Final Thoughts

Tax debt is a heavy burden, but it is not a permanent one. My mission is to empower you with a legal shield. The IRS has a playbook they use against you; it is time you had a professional advocate to level the playing field. Maryland is a state of industrious, hardworking people. Don't let a period of non-filing define your future. By taking a proactive, legal approach to your tax debt today, you can secure your assets, protect your family’s legacy, and finally close the chapter on the IRS.
Next Steps: Consult with an Expert: If your debt is escalating or you haven't filed in years, contact the Law Office of Beverly Winstead for a confidential strategy session. Let’s build your path to resolution.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[Can the IRS Garnish Your Wages in Maryland?]]> https://www.lawofficesofbeverlywinstead.com/?p=254429 2026-04-23T11:01:34Z 2026-03-24T00:48:09Z wage levy. However, this action does not happen automatically or without notice. There are specific legal steps the IRS must follow before your employer is required to withhold part of your earnings. This article explains how wage garnishment works in Maryland, what protections apply, and what options may be available if you are facing enforcement.

What Is an IRS Wage Garnishment?

Technically, the IRS does not use the term “garnishment.” Instead, it issues a wage levy. A wage levy is a legal order sent directly to your employer requiring them to withhold a portion of your wages and send it to the IRS to satisfy unpaid tax debt. Unlike many private creditors, the IRS does not need to obtain a court judgment before levying wages. Its authority comes from federal tax law.

Does the IRS Have to Notify You First?

Yes. Before issuing a wage levy, the IRS must complete several required steps:
  1. Assess the tax and send you a bill (Notice and Demand for Payment).
  2. Send a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (commonly issued as Letter 1058 or LT11).
  3. Provide you at least 30 days to request a Collection Due Process (CDP) hearing.
If you request a CDP hearing within that 30-day window, the IRS must pause enforcement action while the hearing is pending. If you do not respond within the required timeframe, the IRS may proceed with a levy.

How Much of Your Wages Can the IRS Take?

This is where many people are surprised. For private creditors in Maryland, wage garnishment is generally limited under federal law to:
  • 25% of disposable earnings, or
  • The amount by which weekly wages exceed 30 times the federal minimum wage, whichever is less.
However, the IRS is not bound by those same 25% limits. Instead, the IRS calculates the amount you are allowed to keep using tables published annually (Publication 1494). The exempt amount depends on:
  • Your filing status
  • The number of dependents you claim
  • Your pay frequency
Everything above the exempt amount can be levied. In some cases, this means the IRS may take significantly more than 25% of your paycheck.

Is an IRS Wage Levy Ongoing?

Yes. An IRS wage levy is typically continuous, meaning it remains in effect each pay period until:
  • The tax debt is paid in full
  • The IRS releases the levy
  • You enter into an approved resolution program
  • The collection statute expires (generally 10 years from assessment, with exceptions)
This differs from a one-time bank levy, which attaches only to funds present in the account at the time of levy.

How Does This Work in Maryland Specifically?

Because the IRS is a federal agency, its levy authority applies nationwide, including Maryland. Maryland’s state garnishment limits apply primarily to private creditors and certain state-level debts. Federal tax levies follow federal procedures and override state garnishment percentage caps. If you work for an employer in Maryland and the IRS issues a wage levy, your employer is legally required to comply. Failure to do so could make the employer liable for the amount that should have been withheld.

Can You Stop an IRS Wage Garnishment?

In many cases, yes, but timing is critical. Once a levy is issued, you still have options. The IRS may release a levy if:
  • You enter into an Installment Agreement
  • You qualify for Currently Not Collectible (CNC) status due to financial hardship
  • You submit or secure approval for an Offer in Compromise
  • The levy is creating immediate economic hardship
  • The levy was issued in error
The most effective time to intervene is before the levy begins, during the 30-day window after receiving the Final Notice of Intent to Levy. However, even after wages are being withheld, it may still be possible to negotiate a release.

What Is “Currently Not Collectible” Status?

If paying your tax debt would prevent you from covering necessary living expenses, the IRS may classify your account as Currently Not Collectible. In that status:
  • Wage levies are generally released
  • Active collection efforts pause
  • Penalties and interest continue to accrue
CNC status does not erase the debt, but it can provide immediate financial breathing room.

What About Bankruptcy?

In some cases, bankruptcy may temporarily stop IRS collection through the automatic stay. Whether tax debt is dischargeable depends on several factors, including:
  • The type of tax
  • The age of the tax
  • Whether returns were filed properly and on time
This is a complex area of law and requires careful legal analysis.

How to Protect Yourself Before a Levy Happens

If you have received IRS notices, the worst approach is ignoring them. Early action can significantly expand your options. Practical steps include:
  • Confirming all required tax returns have been filed
  • Verifying the total balance owed
  • Reviewing whether penalties may qualify for abatement
  • Exploring resolution options before enforcement begins
Once a levy is in place, negotiating becomes more reactive. Addressing the issue proactively often allows for more favorable outcomes.

Key Takeaways

  • Yes, the IRS can garnish (levy) your wages in Maryland.
  • The IRS does not need a court order to do so.
  • You must receive prior notice and have a 30-day window to request a hearing.
  • IRS levy limits differ from Maryland’s standard 25% garnishment cap.
  • A wage levy is continuous until resolved.
  • Several resolution options may stop or prevent garnishment.

Final Thoughts

An IRS wage levy can feel overwhelming, especially when it affects your ability to meet everyday financial obligations. But it is not a random or immediate action. It follows a structured legal process, and there are defined rights and procedural safeguards available to taxpayers. If you are concerned about wage garnishment or have received a Final Notice of Intent to Levy, seeking experienced legal guidance early can make a significant difference in how the matter is resolved. Understanding your rights, and acting before enforcement escalates, is often the most important step you can take. Book a consultation today with Beverly Winstead and know your rights.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[Maryland Taxpayers: How to Settle IRS Debt Before It Escalates]]> https://www.lawofficesofbeverlywinstead.com/?p=254428 2026-04-23T11:01:58Z 2026-03-24T00:46:55Z owe the IRS, the worst thing you can do is wait and hope it resolves itself. IRS debt does not disappear. It follows a structured legal collection process, and if left unaddressed, that process can escalate to federal tax liens, wage levies, and bank levies. At the Law Offices of Beverly Winstead, we regularly work with Maryland taxpayers who come to us after months, sometimes years, of stress and uncertainty. The good news is this: escalation is often preventable when addressed early and strategically. Here’s what you need to know.

How IRS Collection Escalates

The IRS must follow specific statutory procedures before enforcing collection. Typically, the process includes:
  1. Assessment of the tax and issuance of a bill
  2. Reminder notices
  3. A Final Notice of Intent to Levy (Letter 1058 or LT11)
  4. A 30-day period to request a Collection Due Process (CDP) hearing
  5. Enforcement action if the matter remains unresolved
That 30-day window is critical. If a timely hearing is requested, most enforcement action is paused while the case is reviewed. By the time many taxpayers seek help, they are already close to, or past, this stage. Early legal intervention preserves more options.

First Step: Confirm Compliance

Before any meaningful negotiation can occur, you must be compliant. This means:
  • All required tax returns are filed
  • Current taxes are being paid or properly withheld
  • The total assessed balance is verified
If returns are missing, the IRS may prepare a Substitute for Return (SFR) on your behalf. These filings often result in higher tax assessments because they do not include deductions or credits you may qualify for. At our firm, we begin by confirming the accuracy of the liability and ensuring compliance is restored before pursuing resolution.

Settlement Options That May Be Available

The IRS offers several formal programs to resolve tax debt. Eligibility depends on financial analysis, not assumptions.

Installment Agreements

An Installment Agreement allows you to pay over time. Depending on the balance owed, different agreement structures may apply, including streamlined agreements for certain qualifying balances. An approved installment agreement generally prevents enforced collection as long as payments remain current. However, entering into a plan without evaluating long-term affordability can lead to default, and renewed enforcement.

Offer in Compromise (OIC)

An Offer in Compromise allows eligible taxpayers to settle for less than the full amount owed. The IRS evaluates offers based on Reasonable Collection Potential (RCP), a calculation that considers income, expenses, and asset equity. Not every taxpayer qualifies. Submitting an offer without proper financial analysis can result in rejection and delay. When appropriate, a carefully prepared Offer in Compromise can significantly reduce exposure. But it must be grounded in verified financial documentation.

Currently Not Collectible (CNC) Status

If paying the tax debt would prevent you from covering necessary living expenses, you may qualify for Currently Not Collectible status. In CNC:
  • Active collection efforts are paused
  • Wage levies are generally released
  • Penalties and interest continue to accrue
CNC does not eliminate the debt, but it can prevent escalation during financial hardship.

Penalty Abatement

In some cases, taxpayers qualify for penalty relief. This may include:
  • First-Time Abatement (for taxpayers with prior compliance history)
  • Relief based on reasonable cause (such as serious illness or circumstances beyond your control)
While penalty abatement does not remove the underlying tax, it can meaningfully reduce the total balance.

What Happens If You Wait?

If IRS debt remains unresolved, enforcement can escalate. The IRS may file a Notice of Federal Tax Lien, securing its interest in your property. A lien can affect credit, financing, and business operations. If further action is required, the IRS may issue levies against wages or bank accounts. These actions are not immediate, but they are legally authorized when prior notices go unanswered. Waiting reduces flexibility. Acting early increases leverage.

The 10-Year Collection Window

In most cases, the IRS has 10 years from the date of assessment to collect a tax debt. However, certain actions can suspend or extend that period, including:
  • Filing an Offer in Compromise
  • Requesting a Collection Due Process hearing
  • Bankruptcy proceedings
Strategic decisions should always consider how they affect the collection statute timeline.

Why Legal Strategy Matters

IRS resolution is not one-size-fits-all. The correct approach depends on:
  • Verified financial capacity
  • Asset exposure
  • Business structure (if applicable)
  • Long-term compliance planning
  • Collection statute considerations
Maryland business owners, physicians, contractors, and professionals often face additional complexity due to income structure, payroll obligations, or trust fund exposure. At the Law Offices of Beverly Winstead, we approach IRS debt strategically — not reactively. Our role is to analyze the full financial picture, determine eligibility under federal guidelines, and engage the IRS through proper procedural channels.

Protecting Your Position Before Escalation

If you have received IRS notices, especially a Final Notice of Intent to Levy, time matters. Proactive action can:
  • Preserve appeal rights
  • Prevent wage levies or bank levies
  • Potentially avoid federal tax lien filing
  • Structure a sustainable resolution plan
The earlier intervention occurs, the more options remain available.

Final Thoughts

IRS debt does not resolve itself, but it also does not escalate without warning. The agency must follow defined statutory procedures, and taxpayers have specific rights during the process. Understanding those rights, and exercising them strategically, is critical. If you are a Maryland taxpayer facing IRS debt, do not wait for enforcement to begin. Consult with the Law Offices of Beverly Winstead to evaluate your position, determine your eligibility for resolution programs, and take control of the process before it escalates. Strategic action today can prevent far more serious consequences tomorrow.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[Earned NIL Money but Didn’t File Taxes? Here’s How to Fix It]]> https://www.lawofficesofbeverlywinstead.com/?p=254416 2026-02-16T06:51:18Z 2026-02-16T06:51:18Z earning NIL money and not filing taxes does not mean you are out of options. In most cases, there is a clear and manageable path forward. This article explains what to do next and how to approach the situation calmly and correctly.

First, Take a Breath

Many people assume that missing a tax filing deadline automatically puts them in serious trouble. In reality, unfiled or late returns are common, especially when income is new or unexpected. The IRS generally cares about two things:
  • That income is reported as soon as you discover your error
  • That a good-faith effort is made to resolve the situation
Perfection is not required. Action is.

Step 1: Understand What Income You Earned

Before anything can be fixed, it needs to be understood. NIL income may have come from:
  • Brand endorsements or sponsorships
  • Social media promotions
  • Appearances or camps
  • Merchandise or content collaborations
  • Non-cash compensation with monetary value
Even if no tax form was received, income may still need to be reported. Receiving a Form 1099 is not the only factor that determines tax responsibility. Start by identifying:
  • How much was earned
  • When it was earned
  • Who paid it
This creates clarity and allows accurate next steps.

Step 2: Determine Which Tax Returns Are Missing

Unfiled taxes usually mean one of two things:
  • A return was never filed for a year with NIL income and you need to file.
  • The IRS may file a substitute return for you, often times charging you higher taxes, based upon information provided to them by third parties.
Each situation is handled differently, but both are fixable. The IRS generally expects returns to be filed for each year income was earned above filing thresholds. Filing missing returns is often the first and most important step toward resolving the issue.

Step 3: File the Missing or Corrected Returns

Filing brings options back on the table. Once returns are filed:
  • Penalties and interest can be assessed accurately
  • You may be able to establish a repayment plan or settlement with the IRS if you owe.
  • Communication with the IRS becomes clearer and more controlled
In many cases, filing sooner reduces long-term fees and prevents further complications.

Step 4: Understand Potential Penalties Without Panic

Late filing or late payment can result in penalties and interest. However, these amounts are often less severe than people fear, especially when action is taken proactively. In some situations,:
  • Penalty relief may be available
  • Payment plans may be negotiated
  • Certain circumstances may reduce liability
What matters most is addressing the issue rather than avoiding it.

Step 5: Plan for Resolution, Not Just Filing

Fixing unfiled NIL taxes is not only about catching up. It is also about moving forward correctly. That includes:
  • Understanding whether estimated tax payments are needed going forward
  • Keeping basic income and expense records
  • Avoiding repeat issues in future seasons
A plan creates confidence and stability.

Parents and Guardians Often Play a Key Role

For many student-athletes, NIL income arrives while they are still learning how finances work. Parents and guardians often provide essential guidance and support during this process. Helping a student-athlete understand that:
  • This situation is common
  • It is fixable
  • Getting help early is responsible can reduce stress and lead to better outcomes.

Fixing the Issue Protects More Than Your Finances

Unresolved tax issues can affect:
  • Future earnings
  • Credit and financial opportunities
  • Peace of mind during and after college
Addressing the issue now protects flexibility and keeps future options open.

You Do Not Have to Navigate This Alone

Student-athletes are not expected to be tax experts. NIL is still new, and many people are learning as they go. The smartest step is not knowing everything. It is knowing when to ask for guidance.

Final Thoughts

Earning NIL income is a sign of opportunity and growth. Falling behind on taxes does not erase that success. What matters is how the situation is handled next. With the right information and support, unfiled NIL taxes can be resolved calmly and correctly. Taking action now turns uncertainty into clarity and allows you to move forward with confidence. If this situation sounds familiar, a consultation with the Law Offices of Beverly Winstead would help your family move forward with confidence.]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[The Hidden Tax Side of NIL Deals Every Student-Athlete Should Understand]]> https://www.lawofficesofbeverlywinstead.com/?p=254414 2026-02-10T04:58:09Z 2026-02-10T04:58:09Z tax responsibility. Understanding the tax side of NIL early can help student-athletes protect what they are building, avoid unnecessary stress, and make smarter long-term decisions.

NIL Income Is Taxable Income

One of the most important things to understand is simple but often misunderstood: NIL income is taxable. If a student-athlete receives money, free products with monetary value, or other compensation in exchange for promotional work, appearances, or endorsements, the IRS generally considers that income taxable. This applies whether the athlete is paid through a contract, social media platform, brand partnership, or appearance fee. The form of payment does not change the tax obligation. Cash, checks, direct deposits, and even certain non-cash benefits may still be taxable.

Most NIL Earnings Are Treated as 1099 Income

In many NIL arrangements, student-athletes are not treated as employees. Instead, they are considered independent contractors. This means:
  • No taxes are automatically withheld
  • No employer is paying Social Security or Medicare taxes on the athlete’s behalf
  • The athlete is responsible for reporting income and setting aside money for taxes
Many brands issue Form 1099-NEC to report payments made to athletes. However, even if a 1099 is not issued, the income may still need to be reported. This distinction matters because it changes how taxes are planned and paid.

Taxes Are Not Paid Only Once a Year

Another common misunderstanding is believing taxes are handled only at filing time. Independent contractors are often expected to make estimated quarterly tax payments if they earn above certain thresholds. These payments help cover:
  • Federal income tax
  • Self-employment tax, which includes Social Security and Medicare contributions
Failing to plan for this can result in underpayment penalties or unexpected tax bills later. This does not mean student-athletes must become tax experts. It means they should understand that income planning matters from the beginning.

Expenses May Matter, but Documentation Is Key

Some NIL-related expenses may be deductible if they are ordinary and necessary for earning income. Examples can include:
  • Professional services, i.e., paying a lawyer or tax advisor, related to NIL work
  • Certain marketing or branding expenses
  • Equipment or tools used specifically for business purposes
However, deductions must be legitimate, properly documented, and connected to income-producing activity. Mixing personal and business expenses without records can create issues during tax filing or audits. Keeping basic records from the start is one of the simplest ways to reduce stress later.

Parents Often Play a Critical Role

For many student-athletes, NIL income is their first experience managing self-earned money. Parents and guardians are often an essential part of the process. Helping a student-athlete understand:
  • That NIL income is taxable
  • That planning matters more than perfection
  • That asking for help early is smart, not embarrassing
Education and guidance early can prevent years of confusion or cleanup later.

Unfiled or Misreported NIL Income Can Create Problems

Delaying tax filing or misunderstanding obligations does not automatically mean someone has done something wrong. It does, however, limit options over time. Unfiled returns, underreported income, or missed estimated payments can lead to:
  • Penalties and interest
  • IRS notices
  • Increased stress during filing season
The good news is that most situations are fixable, especially when addressed early and proactively.

NIL Success Is About Long-Term Thinking

NIL is not just about the deal signed today. It is about future opportunity. Smart athletes think beyond the season. They understand that:
  • Financial records last longer than highlight reels
  • Reputation includes how responsibilities are handled
  • Planning protects freedom and flexibility later
  • Handling taxes properly is not about pressure or fear. It is about control, confidence, and protecting what is being built.

The Right Guidance Makes a Difference

Student-athletes are not expected to navigate NIL contracts, taxes, and compliance alone. Surrounding yourself with the right support team matters. Getting informed early allows athletes to focus on what they do best while knowing the foundation underneath is solid.

Final Thought

NIL has changed the game in powerful ways. With opportunity comes responsibility, and with the right education, that responsibility becomes manageable. Understanding the tax side of NIL is not about limiting success. It is about making sure success lasts. If NIL income is part of your journey, learning how it works now can protect your future far beyond the season. Book a consultion today at the Law Offices of Beverly Winstead! ]]> On Behalf of Law Offices of Beverly Winstead <![CDATA[January Tax Planning Checklist: How to Avoid a Surprise IRS Bill This Year]]> https://www.lawofficesofbeverlywinstead.com/?p=254412 2026-01-16T18:26:46Z 2026-01-16T15:26:18Z surprise IRS bill can disrupt budgets, create anxiety, and leave people wondering what went wrong. In most cases, the issue is not a mistake. It is timing. Tax planning that starts too late often leaves fewer options on the table. That is why January is the most effective time to take control. This January tax planning checklist focuses on prevention. These steps are designed to help you understand where you stand early in the year and make adjustments that reduce the risk of owing the IRS later.

Why IRS Bills Catch People Off Guard

Unexpected IRS balances usually come from gaps, not errors. Income changes, multiple pay sources, or outdated tax settings can quietly add up throughout the year. Some of the most common contributors include:
  • Withholdings that no longer match income levels
  • Side income that was never accounted for
  • Self-employment income without estimated payments
  • Life changes that altered tax liability
The key to avoiding these problems is identifying them early, before they compound.

A Practical January Tax Planning Checklist

1. Look Back Before You Look Ahead

Before planning for the year ahead, revisit your most recent tax return. Focus on outcomes rather than details. Ask:
  • Did I owe money or receive a refund?
  • Was the amount expected or surprising?
  • Were penalties or interest involved?
This overview provides valuable insight and helps pinpoint what adjustments may be needed to avoid owing the IRS next year.

2. Reevaluate Your Paycheck Withholdings

Paycheck withholdings are often set once and forgotten. Over time, they can become misaligned with reality. If your income increased, you changed filing status, or you added another job, your withholding may no longer be sufficient. Learning how to adjust withholdings early in the year allows those changes to work in your favor over time instead of forcing a correction later.

3. Estimate Taxes If You Do Not Have Automatic Withholding

If taxes are not automatically taken out of your income, estimating taxes is essential. This applies to:
  • Freelancers and contractors
  • Business owners
  • Individuals with investment or rental income
Estimating taxes in January helps spread responsibility evenly across the year and reduces the likelihood of penalties or last-minute payments.

4. Take Inventory of All Income Streams

One overlooked income source can lead to a big tax surprise. Create a simple list of every way income comes in, including:
  • Employment income
  • Contract or freelance work
  • Business revenue
  • Investment distributions
This step is less about math and more about awareness. Once everything is visible, planning becomes easier.

5. Factor in Major Changes Early

Certain events shift tax outcomes more than people realize. These include:
  • Marriage or divorce
  • Job changes or promotions
  • Starting a business
  • Adding dependents
Addressing these changes in January gives you time to plan instead of reacting when the tax return is due.

6. Start Collecting Tax Documents Gradually

You do not need a complete system. You do need consistency. Designate one place to store:
  • Income statements
  • Deduction-related receipts
  • IRS correspondence
Having documents organized as the year progresses helps you make better decisions and avoids scrambling later.

7. Review IRS Records If You Have Prior Issues

For those who have owed the IRS before, reviewing IRS transcripts can be a smart preventative step. Transcripts provide a clear picture of what the IRS has on record and can highlight unresolved issues that need attention. This step supports long-term tax planning and helps prevent enforcement surprises.

8. Create a Simple Year-Long Tax Plan

Effective tax planning is not about complexity. It is about consistency. A basic plan should answer:
  • What payments are required and when
  • Whether adjustments need to be made now
  • How income changes will be handled
  • Who is responsible for monitoring progress
This type of plan helps stop getting surprised by a big tax bill because it replaces guesswork with intention.

Why Early Planning Makes a Difference

Waiting until tax season limits flexibility. January planning allows time to adjust gradually, spread payments out, and address issues before they escalate. When people ask how to avoid a surprise IRS bill, the answer is almost always the same. Start earlier than you think you need to.

Support Makes Tax Planning Easier

Many people delay tax planning because they believe they need everything figured out first. In reality, planning works best when questions are addressed early, even if the picture is incomplete. The Law Offices of Beverly Winstead, LLC helps individuals and business owners understand their tax exposure, adjust proactively, and plan with confidence. If you want to avoid IRS surprises this year, January is the right time to begin. Our team is here to guide you, simplify the process, and help you stay ahead.]]>