In this economy many people are struggling just to pay their bills. It is almost impossible if IRS levies your wages and/or your bank account. In many cases IRS will levy both your wages and your bank account. If you have an IRS wage levy or bank levy call Fresh Start Tax, we can help remove it so you can get a full paycheck and can pay your bills. In many cases we can remove the wage levy immediately.
So what is your next step to remove these tax levies. IRS will require you to file back tax returns if you have not done so. Also, IRS will require you to give them your your current financial information with supporting documentation. A wage levy will continue until the IRS is contacted and you have met their requirements or until the back taxes are paid in full. These levies can be released immediately once IRS has all the documents they require. It is best to call a professional company that knows the standards that IRS requires and procedures to handle your case. Call your Fresh Start Tax professional. we negotiate the lowest possible settlement, get the levy released and close your case with the IRS.
The IRS wage and garnishment levy, Form 668W, is a continuous wage levy. Each and every time you get paid this federal tax levy is in effect. IRS will not release this levy until you have contacted them and provided them certain information or your back taxes are paid in full. Also all tax returns must be filed before IRS will release this levy no matter what the hardship. If a hardship exists the IRS may release the wage levy if all tax returns are filed. Otherwise, in most cases IRS will require a current financial statement completely documented before they release the levy.
The Internal Revenue Service has sent this wage levy out because you did not respond to prior notices that were sent by them. Many times taxpayers never received the notices or have moved. Regardless of the situation, IRS will expect you to contact them and resolve the situation. According to the 2009 IRS tables on wage levy’s the IRS will allow a single taxpayer claiming one exemption $179.81 dollar per week, the rest of your paycheck will go to IRS. Very few people in the U.S. can live on $179.81 per week.
The IRS bank levy or garnishment on back taxes is a one time shot only. The bank levy of garnishment freezes the account for a period of 21 days, the account is frozen on the day, place and time of service. IRS gives you a 21 day period to resolve this issue before the bank is legally required to send the money to the them on your back tax debt. Your bank account is still open and you may continue to use your account, only the funds that were in your account at the time of levy service are frozen. Many times IRS will send out multiple bank levies. They levy on all sources they have in their system. If you have received a bank levy, be prepared to receive a wage levy as well.
There are some immediate steps you will have to take to get this issue resolved. The very first action that is required is for you to be current on all your tax filings. IRS will not release either bank or wage levies until all tax returns are filed. It makes no difference whether you owe monies or not, all returns must be filed or the federal tax levy or levies will not be released.
The second action required is that you will need to complete a Form 433F financial statement. That is the Internal Revenue Service’s basic tool to resolve all problems. IRS will review the statement and make a determination on your case. You will need to provide supporting documentation for the information on Form 433F so IRS knows that the statement is truthful. Also, you will need to provide copies of bank statements, pay stubs and your monthly bills.
The good news is the Internal Revenue Service is working your case to release the bank or wage levies the IRS will also work to close your case. Your case will probably be closed in one of two ways. Usually, IRS reviews the financial statement and sets you up on a installment agreement or a part pay agreement. They can have you pay monthly in a variety of ways, such as monthly checks, payroll deductions or automatic bank payments. The other common way to close you case is with a financial hardship. That is, you simply do not have the money to pay the IRS and your monthly bills. In this type of case the IRS will place your case in a noncollectable file.
Once IRS starts sending out federal tax levies be prepared to have the federal tax lien filed in the area that you live. IRS protects their interest by the filing of a federal tax lien. A Federal tax lien will hurt your credit and your ability to borrow. The only way to get the federal tax lien removed on your back taxes is to pay the tax in full or to have an offer in compromise accepted and paid in full. IRS will file multiple liens if you have assets in different states. The federal tax lien at some point will become a real nuisance you must deal with. Fresh Start Tax can take action on your behalf before to stop the filing of the federal tax lien.
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