Financial Resource

Settling Tax Debt to Stop IRS Bank and Wage Levies – Settling your IRS tax debt is the fastest solution for stopping an IRS bank levy or an IRS wage levy. Once you are in the negotiation phase, the IRS levy will automatically stop. If your IRS settlement is approved, the IRS levy will actually be permanently “lifted” giving you complete relief from the tax debt problem!

If your tax liabilities are more than 20,000 dollars, then you can hire an enrolled agent, an expert Tax Attorney or a CPA [Certified Public Accountant] to solve your problem. Most of them do a free assessment of your problem and could guide you properly, once they have understood your case. Their charges could be quite high, but their experience and expertise could help in quickly getting your levy released.

The submission of the application is usually 30-60 days to buy time. This allows you to do many things. Maybe now you can have an installment agreement reorganizes its finances so that you plan to afford it, may propose a monthly payment to the IRS, called. Maybe this time you could have asked for and obtained a loan, which could then use to pay the IRS because the IRS penalty and interestProbably would be more than just receive a loan. Maybe this time, you could borrow money from friends or relatives, or made a deposit to your work. Maybe give yu the time to see to fully evaluate the situation, whether you qualify for an offer in compromise, and you can request a file of tax system.

Find out if you are eligible for an IRS Debt Settlement Program, Installment Agreement, Offer in Compromise, Currently Not Collectible, or Innocent Spouse.

There is an appeal against the rejection of the offer which must also be utilized. No levy action can be taken against the tax payer until the appeal against rejection of installment agreement or offer in compromise is decided.

You wouldn’t defend yourself against murder charges without legal counsel. And this IRS tax collection notice to collect back taxesis no different. You’ll need IRS tax help from a tax attorney or Certified Tax Resolution Specialist at your side to ensure that this IRS notice to collect back taxesis dealt with effectively.

But it’s not easy. This is where your tax attorney or Certified Tax Resolution Specialist really earns their fee providing IRS tax help. The IRS won’t accept just any Offer in Compromise. They need to be convinced that your Offer in Compromise is their best and only hope of getting the maximum amount of money out of you that they can.

A levy usually means the property is actually seized by the IRS. In the case of real estate, it means the IRS can force a sale of the property and keep the proceeds up to the amount of taxes, penalties and interest owed. A certain portion of wages and commissions are exempt from levy; the amount depends on a number of factors, including the number of dependents. All forms of bank accounts-savings, checking and CDs-are subject to a levy in full. In order to catch subsequent deposits, the IRS must serve a new levy on the bank. Once wages are levied upon, the same levy reaches all subsequent wages, commissions, bonuses, etc. No forms of retirement funds are exempt from levy, including social security payments and other forms of government pensions. However, unemployment and workers’ compensation benefits are exempt from levy, as are SSI and some forms of public assistance. A small amount of household and personal effects, and tolls and equipment used in the taxpayer’s trade or business, are exempt from levy.

The Internal Revenue Service issues a levy notice to the person’s bank. This levy notice requires the bank to freeze the party’s assets for twenty-one days. If, for any reason, the bank was to refuse or ignore the IRS levy against your account, it would then become liable for the money, itself. During these twenty-one days, the taxpayer or their representative can negotiate with the IRS for release of the levy. If no compromise is reached, after twenty-one days the money in the accounts remits to the IRS.

Because a bank levy is generally a one-time event, IRS will not release it unless payment in full is satisfied or the taxpayer can prove “extreme financial hardship”. You have extreme financial hardship if the funds in the bank are necessary to the taxpayer for their health and welfare, or generation of income. Some of these hardships might be upcoming medical expenses, utility shutoff notice, foreclosure, repossession, business payroll, or eviction. If the Internal revenue Service does agree to a release because of one of these hardships, they generally allow only the release of enough funds to cover the expense.

In the current economic downturn, we are seeing many struggling businesses falling behind on payroll tax deposits. And business owners need expert tax representation to protect the future of their companies and avoid IRS levies on their wages, bank accounts and customer receivables.

Can I bury my head in the sand? I recommend against this. What happens if you wait? First of all the IRS starts sending you letters telling you how much you owe, and asks that you contact them to setup arrangements. If you don’t respond to the IRS then…well, things can get real bad real fast for you. The IRS can seize your wages, seize you bank account, or any other accounts you have. They can also put a levy on your home. That’s why taking immediate action is so important.

Taxpayers need to understand the many factors involved in the IRS bank levy action. You need the help of a knowledgeable tax attorney who can advise you and can begin the process of releasing the levy.

You can make monthly payments on your IRS tax debt. The IRS will calculate your income and assets when you file Form 9456. After the IRS determines you qualify, they will set the amount you can pay each month to pay off your tax debt. When you are approved, you must make sure not to default on your monthly payments. Your plan will be canceled and you will not qualify for another installment agreement for six months to one year. The monthly installment agreement is the most common IRS tax relief solution for payment of back tax debts. As you can see, the IRS provides many solutions for taking care of common tax problems. You have to act fast and make sure you respond to any notices you receive from the IRS as soon as possible. The IRS will not and can not be ignored.

If you will be held accountable for some portion – The IRS will determine assess how much you are responsible to pay, the full amount or a portion. IRS collection proceedings will not begin until the amount your tax liability has been clarified.

You can constantly wish that the lien finishes prior to the issuance of a tax levy. This can be an answer, although not one you want to depend on. Anytime the IRS can lengthen the actual lien and once more place you in an undesirable situation.

A wage garnishment, on the other hand, is a continuous levy. The wages of the tax payer are required to be handed over to the IRS on a monthly or weekly basis depending on when it becomes due for payment.

This is a serious situation, and you want to make sure you take the actions necessary in order to protect your assets. If you fail to take action, you could end up being the victim of a bank levy. This is something much easier to prevent than it is to discharge. Therefore, it is crucial to take action prior to the IRS freezing your bank account. You will have a head start in discharging the debt and satisfying the IRS when you take action as soon as you receive the notice. If you get a notice of intent to levy, be sure to begin the process right away to protect the money in your bank account.

In the event the IRS selects to levy your property utilizing a bank account levy they will find the financial institution that you employ. The IRS can usually discover your banking account pretty quickly. The most typical method these people discover the financial institution is right from your tax return. In the event that you’ve ever gained interest on any kind of resources at your financial institution it is most likely that you simply outlined your bank in your tax return, making this the ultimate place these people will search. In the event you did not record it, these people will nevertheless find it although it just might take some additional searching for them.

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