1. The IRS has a list of levy information for all taxpayers on their master computer that goes back seven years.
2. The IRS gets the levy information from your 1040 tax return and attached documents, the W-2′s, 1099′s and various other sources such as interest or dividend income information.
3. The IRS has a record of all bank checks you have sent them and they keep this bank information on file.
4. The IRS will send a federal levy 668(a) or 668(W) out 6 weeks after you have received your CP-504, Notice of Intent to Levy. The 6 week period starts from the date on the IRS letter or notice.
5. Whether you sign for the certified notice letter that IRS sends out or not, the 6 weeks still runs from the date on the letter.
6. The IRS must give you a right to a hearing before the tax levy may be sent. There is a 30 day period of time for a tax hearing
7. The IRS can and will send out multiple levies to bank accounts, Form 668(a) and on wages, Form 668(w).
8. On an IRS bank levy, 668(a), there is a 21 day freeze on funds in the account the day the levy hits the bank. This gives you 21 days to resolve the case.
9. A wage garnishment, 668(w), or levy on wages is continuous and will not be removed or released until the case is closed.
10. The IRS will not release any levy until all tax returns are current.
If you receive a Tax Levy or Notice of Intent to Levy:
* Contact Fresh Start Tax at 1.800.700.1040 and we will handle the IRS for you;
* Make sure all tax returns are filed and you are current on all filings(we can do that too);
* Prepare and document an IRS financial statement, Form 433-F.
The IRS Financial Statements, Form “433-F”
The IRS Financial Statements are the single biggest problem for taxpayers when trying to close their IRS case. It is this document “alone” and the corresponding documentation that determines the outcome of your case. The biggest cause of concern and problems comes from lack of knowledge in packaging the 433-F. The lack of knowledge on how to fill this out can significantly change the outcome of your case. Paying too much to the IRS can cause financial hardship. Be very aware that your lack of knowledge is the IRS’s success.
Here are some tips for success when dealing with the IRS financial Statements.
Form 433-F is a financial statement that is primarily used by the Automated Collection System of the Internal Revenue Service, also call the ACS Unit. The ACS Unit has offices set up in regions across the United States, but it works through an 1-800 telephone system. All calls to ACS are routed into one national telephone system. Those calls are routed to regions whose telephones lines are available to pick up. For instance, it is possible that calls from Florida are worked in California. One benefit about this system is that it allows taxpayers on the East Coast to call up to 8:00 PM, Eastern Standard Time to handle their cases. The downside to this system is that it is almost impossible to close the case with one telephone call. Fresh Start Tax has the ability to make this happen.
What typically happens when you call the 1 800 telephone number is that the IRS agent asks you to complete the 433-F with all supporting documentation. If you have the 433-F with the documentation you will fax it to the IRS agent directly. If you are missing one or more piece of information you must call back to submit the missing documents. You call the 1 800 telephone number again and talk to a different agent. You’ll probably never get the first agent. You have to go over the whole case again and at that time the second agent who reviews the 433-F may ask for different documentation that the first agent never inquired about. This process can repeat itself over and over.
This is the most frustrating system in the world and IRS knows it. When you finally close your case with an agent it must be approved by a supervisor. In most cases the agent your working with will say “a supervisor will get back to you and let you know if it is approved”. Many times no supervisor calls. You must call them back, to find out if your case if closed. If you do not confirm that your case is closed, it is very possible the case will hit the enforced collection system of the IRS. If this happens a federal tax lien and/or federal tax levies on bank accounts and wage garnishment may take place. Always call back to confirm that your case is closed. By the way, wait times on the phone can be up to 45 minutes. Mondays and after Holidays, the wait time is big. You need to find the time and patience to call back.
The basic tips to closing your case when calling the IRS using the 433-F Financial Statement:
* Complete every line on the 433F;
* Answer all questions. Write none or not applicable in boxes that do not apply to you;
* Have all documents ready to be faxed to the IRS. Do not call them until all documents are ready to be faxed;
* Make sure you have bank statements, pay stubs and supporting documentation for expenses;
* When the IRS tells you they need managerial approval to close your case, make sure you contact them back or your case will still be open in the system. Do not assume the case will close itself.
Fresh Start Tax is a professional company with experts in this field. We can get you your very best result.
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