Just recently I had a call from a client that said the IRS just sent a bank levy and a wage garnishment for Income Tax that was owed to the Canadian Government. She asked,” what gives IRS the right to do something for the Canadian government?”
There is a tax treaty between the United States and Canada .
Few people or tax professionals know about this.
The IRS Tax Levy, Bank or Wage Levies will read like this,
“These are amounts due and owing to the Government of Canada and is being collected on behalf of Canada in accordance with Article XXVIA of the UNA-Canada income tax convention and applicable laws of the United States of America.
Payments should be made payable to the receiver General Canada, not the United States, but should be mailed to the IRS address contained on the levy notice. The IRS is the coordinator on these events.”
A couple of important things to remember.
1 . The IRS can take full enforcement action to collect the Canadian Debt. They can seize anything they want to achieve the goal of full payment.
2. The IRS will follow the same procedure for this Canadian Debt that they follow to collect American Tax Dollars.
3. Offers in Compromise will not be accepted.
4. The IRS will usually continue to levy until they close the case. Closing the case will entail a full payment, a hardship situation or a payment agreement.
5. The IRS has a liaison officer to handle these cases .
6. Canada has a U.S. counter part that transfers the cases to the U.S. This person is called a collection officer.
By contacting the author of this article, you can get all the information to get these tax levies released. The authors firm specializes in this situations.
Shocker, IRS can Levy on Canadian Income Tax Debt, Wage and Bank Levies
