by Fresh Start Tax | Dec 28, 2012 | Tax Help
Tax Compliance Levy – Bank, Wage Levy Garnishments Relief
Call us today to get instant tax relief for a bank or a wage garnishment levy. 1-866-700-1040.
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If a taxpayer does not comply with the IRS requirements and adherence of the IRS notices and bills it sends as a result of monies owed for back taxes, IRS will fully engaged there tax compliance through collection enforcement with the issuance of a bank levy or a wage garnishment levy.
IRS can only usually levy or garnish after these (3) three requirements are met:
1. The Internal Revenue Service assessed the tax and sent you a Notice and Demand for Payment,
2. You the taxpayer neglected or refused to pay the tax and you let IRS know by voice or mail,
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing Levy notice at least 30 days before the levy.
Method of Delivery of a Tax Levy or Wage Garnishment.
IRS may give you this notice:
1. in person,
2. leave it at your home or,
3. your usual place of business,
4. or send it to your last known address by certified or registered mail.
Bank Levies Holding Period
A bank must wait 21 calendar days after a levy is served before sending payment.
On the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process. Bank includes all credit unions, savings and loan associations, trust companies.
During the holding period, a bank tax levy might be released, or the amount owed could decrease.
If the bank receives no release, it must send the payment after the holding period.
Absolutely no additional tax notice is required.
Consider the holding period when deciding how long to project the accruals on a bank levy.
Duties of the Bank Liaison
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
Sometimes ownership is not settled before the holding period ends.
If this happens, ask the bank for more time.
Issues that may arise.
Multiple Signature Authority for a Bank Account
A bank levy served to a bank attaches to funds in a bank account for which the taxpayer has an unrestricted right to withdraw funds (signature authority) even if multiple persons have signature authority for that bank account.
A non-liable third party may claim ownership of funds in a bank account when multiple people hold signature authority for that bank account. Treat this dispute as a potential wrongful levy.
A wrongful levy is a levy that improperly attaches property belonging to a third party in which the taxpayer has no rights.
Reminder:
For bank levies if additional time is needed beyond the 21 day hold period to determine ownership, request the bank hold the funds. Provide the potentially wrongfully levied party a deadline date for providing substantiation and provide the bank with a specific extension date to forward the funds.
Amount that must be surrendered as a result of the Tax Levy
The bank must send the amount in the taxpayer’s accounts.
A bank levy attaches to any property or rights to property that belong to the taxpayer or on which there is a Federal tax lien, unless it is exempt.
Legal authority to Levy
See IRC 6331, Levy and Distrait , for legal authority to levy.
However, it must send no more than the amount shown on the notice of levy.
By law, banks cannot immediately honor the IRS tax levy.
Very Important Note:
The notice of levy only reaches the amount on deposit when the levy is received. Money deposited later is not surrendered, including deposits during the holding period.
Another levy must be served to reach this money. Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
Tax Compliance Levy – Bank, Wage Levy Garnishments Tax Relief
by Fresh Start Tax | Dec 27, 2012 | Tax Levy and Wage Garnishments
IRS Notice Of Levy on Wages, Salary – Wage Levy Tax Relief Today
If the IRS has sent you or your employer a 688W you wages will continue to be levied until your wage levy garnishment is released.
We are comprised of Attorneys, CPA’s, Enrolled Agents and Former IRS agents and managers who know the system and can get you tax relief from a notice of a Wage Levy.
Call for a free tax consultation and speak directly to a tax professional.
How Wage Tax Levies and Garnishments are removed.
IRS will require a number of things to get your wage tax levy removed or released.
A IRS Agent will be assigned the case wither in the local office or in ASC. If you look at your letter it will let you know where your case is being worked.
IRS will ask for a 433A or a 433F depending who has control of the case.
Both of these forms are IRS financial statements.
IRS will require those financial statements be fully documented and the IRS will want to see proof via fax.
IRS will be looking at Income and Expenses.
IRS will then apply your expenses against the National and Regional Standards. IRS will analyze the information and then make a decision to put your case in one of three categories.
IRS will either put your case in:
1. a IRS tax hardship,
2. make a payment agreement or,
3. recommend the filing of a offer in compromise.
You must also have all tax returns file and up to date.
It is of critical importance you have a tax professional qualify your case before submitting the financial statement to the IRS so you can the best possible settlement structure.
You may not be FIRED from your job. If you are you should sue!
Employer Threatens to Fire Taxpayer Because of a Levy
Sometimes an employer threatens to fire an employee to avoid handling a wage levy.
This can be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
Who you refer the case to:
You may refer the taxpayer to the Wage and Hour Division of the Department of Labor.
DOL, not IRS, must decide if the employer violated the law.
How a continuous effect of levy on salary and wages
Unlike other IRS tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. Yes, it never stops.
It attaches to future payments, until the wage or salary levy is released.
Wages and salary include:
1. fees,
2. bonuses,
3. commissions,
4. and similar items.
All other levies only attach to property and rights to property that exist when the levy is served.
If a bank account is levied, it only reaches money in the account when the levy is served. It does not reach money deposited later.
Exempt Amount from a Wage or Salary Levy
Part of the individual taxpayer’s wages, salary, including fees, bonuses, commissions and similar items and other income, as well as retirement and benefit income, is exempt from levy.
The weekly exempt amount is:
a. The total of the taxpayer’s standard deduction and the amount deductible for exemptions on an income tax return for the year the levy is served.
b. Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
Important Note:
The amount the taxpayer needs to pay court ordered child support is exempt.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Reminder:
If support is allowed, the same child can not be claimed as an exemption for figuring the exempt amount.
Call us today to get fast and affordable tax relief from a Wage or Salary Levy. 1-866-700-1040.
IRS Notice Of Levy on Wages, Salary – Wage Levy Tax Relief Today
by Fresh Start Tax | Dec 26, 2012 | Tax Levy and Wage Garnishments
Tax Levy Removal – Bank, Wage Levies Removed – Fast & Affordable
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents who have over 60 years of direct work experience in the local, district and regional offices of the IRS.
Call us today and we can go over your tax options to get a Tax Levy Removal. Once we are provided with your information we can get same day releases of a tax levy.
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How Tax Levies are removed.
IRS will require a number of things to get your tax levy removed.
IRS will ask for a 433A or a 433F depending who has control of the case. Both of those forms are IRS financial statements. IRS will require those financial statements documented.
IRS will then apply your expenses against the National and Regional Standards. IRS will analyze the information and then make a decision to put your case in one of three categories.
IRS will either put your case in a IRS tax hardship, make a payment agreement or we recommend the filing of a offer in compromise.
You must also have all tax returns file and up to date.
It is of critical importance you have a tax professional qualify your case before submitting the financial statement to the IRS so you can the best possible settlement structure.
We will qualify all financials statements for no charge.
What is a Tax Levy – Tax Liens vs Tax Levies
A tax levy is a legal seizure of your property to satisfy a tax debt. Tax levies are very different from federal tax liens.
A federal tax lien is a claim used as security for the tax debt, while a tax levy actually takes the property to satisfy the tax debt. A levy is an actual seizure by the FEDS.
If you do not pay your taxes or make arrangements to settle your debt the IRS may seize and sell any type of real or personal property that you own or have an interest in.
IRS has the right to seize and sell property that you hold such as your car, boat, house, or your IRA or pension. IRS can also levy on Social Security.
IRS could also levy property that is yours but is held by someone else such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions.
IRS can only usually levy only after these three requirements are met:
1. The Internal Revenue Service assessed the tax and sent you a Notice and Demand for Payment,
2. You the taxpayer neglected or refused to pay the tax and,
3. IRS sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing levy notice at least 30 days before the levy.
Method of Delivery of a Tax Levy
IRS may give you this notice:
1. in person,
2. leave it at your home or,
3. your usual place of business,
4. or send it to your last known address by certified or registered mail, return receipt requested.
Options for the taxpayer who has been levied
You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice.
You MUST file your request within 30 days of the date on your notice.
Some of the issues you may discuss include:
a. You paid all you owed before we sent the levy notice,
b. We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
c. We made a procedural error in an assessment,
d. The time to collect the tax called the statute of limitations)expired before we sent the levy notice, ( the collection statue is usually 10 years.)
e.You did not have an opportunity to dispute the assessment.
Tax Levy Removal – Bank, Wage Levies Removed – Fast & Affordable
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by Fresh Start Tax | Dec 26, 2012 | New Jersey Tax, Offer in Compromise
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
As Former IRS agents we taught the Offer in Compromise at the Internal Revenue Service. 1-866-700-1040.
We know all the procedures and policies governing IRS tax settlement called the Offer in Compromise.
We will qualify your case for a no cost consult before recommending a plan of course of action. the OIC is a very detailed procure and required professional shill for acceptance.
The IRS accepts 30 % of all offers turned in and 90% of those are submitted by professional tax firms.
We are a local professional tax firm that specialize in IRS Offers in Compromise. 1-866-700-1040.
We have over 205 years of professional tax expereince and over 60 years of direct IRS work experience.
We have over 60 years of direct work expereince with the IRS in the local, district and regional offices of the IRS.
The IRS Offer in Compromise, Tax Debt Negotiation
An offer in compromise is a legally binding agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP). The RCP is how the IRS measures the taxpayer’s ability to pay. The formula is based on income plus assets.
The RCP includes the value that can be realized from all of the taxpayers assets, such as real property, automobiles, bank accounts, IRA’s and pension plans and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an OIC based on three basic grounds.
1. The acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed.
2. The acceptance is permitted if there is doubt that the amount owed is collectible.
This means that doubt exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. The acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances. Many times rare circumstances such as medical issues may arise that will cause the IRS to take a second look.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
Lump Sum Payment
A lump sum offer is defined as an offer payable in 5 or fewer installments.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount.
This payment is required in addition to the $150 application fee.
The 20 percent amount is called nonrefundable because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic Payment Offer
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more installments. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee.
This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. These amounts are also nonrefundable.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
Statutory Period of Time
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
To avoid a default, the taxpayer must timely file all tax returns and timely pay all taxes for 5 years or until the offered amount is paid in full, whichever period is longer
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Call us to see if you qualify for an offer. 1-866-700-1040
IRS Offer in Compromise – Tax Debt Negotiation -Tax Attorneys, Former IRS – Essex, Morris, Bergen, Passaic, Union – New Jersey
by Fresh Start Tax | Dec 26, 2012 | Abatements
Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Former IRS
To get rid of, remove, or eliminate IRS penalties there are very specific guidelines to make this happen and to have these penalties gone.
It is critical you met the criteria found under the reasonable cause section of the Internal Revenue Manual. Remember each situation is unique and there are no two cases the same.
You can find on our website a complete list of reasonable cause factors that exist and a working outline to create your own claim for abatement of penalties and interest.
Please go to our homepage and click on Abatement of Penalties.
Listed below are the facts about reasonable cause.
Reasonable Cause to get rid of, remove, eliminate IRS Penalties
IRS Reasonable cause is based on all the facts and circumstances in each situation and allows the IRS to provide relief from a penalty that would otherwise be assessed.
Reasonable cause relief is generally granted when the taxpayer exercised ordinary business care and prudence in determining their tax obligations but nevertheless failed to comply with those obligations.
Equitable Treatment
In the interest of equitable treatment of the taxpayer and effective tax administration, the non-assertion or abatement of civil penalties based on reasonable cause or other relief provisions provided in this IRM must be made in a consistent manner and should conform with the considerations specified in the IRC.
Treasury Regulations (Treas. Regs.), Policy Statements, and IRM Part 20.1, Penalty Handbook determine these cases.
IRS reasonable cause relief is not available for all penalties; however, other exceptions may apply.
Exercising Ordinary Care
For those penalties where reasonable cause can be considered, any reason which establishes that the taxpayer exercised ordinary business care and prudence, but nevertheless was unable to comply with a prescribed duty within the prescribed time, will be considered.
When IRS is considering the information provided in the following subsections, remember that an acceptable explanation is not limited to those given in IRM 20.1.
Penalty relief may be warranted based on an “other acceptable explanation,” provided the taxpayer exercised ordinary business care and prudence but was nevertheless unable to comply within the prescribed time.
The wording used to describe reasonable cause provisions varies.
Some IRC penalty sections also require evidence that the taxpayer acted in good faith or that the taxpayers failure to comply with the law was not due to willful neglect. See specific IRM 20.1 sections for the rules that apply to a specific IRC penalty section.
Taxpayers have reasonable cause when their conduct justifies the non-assertion or abatement of a penalty.
Keys to successful abatement’s:
Each case must be judged individually based on the facts and circumstances at hand. Consider the following in conjunction with specific criteria identified in the remainder of this subsection:
1. What happened and when did it happen.
During the period of time the taxpayer was non-compliant, what facts and circumstances prevented the taxpayer from filing a return, paying a tax, and/or otherwise complying with the law?
2. How did the facts and circumstances result in the taxpayer not complying.
How did the taxpayer handle the remainder of their affairs during this time.
3. Once the facts and circumstances changed, what attempt did the taxpayer make to comply.
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with
Reasonable cause does not exist if, after the facts and circumstances that explain the taxpayer’s non-compliant behavior cease to exist, the taxpayer fails to comply with the tax obligation within a reasonable period of time.
Get Rid of IRS Penalties – Remove, Eliminate IRS Penalties – Reasonable Cause
