by Fresh Start Tax | Feb 19, 2013 | Tax Help
Federal Tax Levy Garnishments – Remove Levy Garnishments NOW 1-866-700-1040 Former IRS Agents
If you have a Federal Tax Levy garnishment on your wages call us today to get a immediate tax relief from your Federal Tax Levy Garnishment.
We are comprised of tax attorneys, CPAs and former IRS agents who have over 60 years of direct work experience with the Internal Revenue Service.
We worked as former IRS agents, former IRS managers, former IRS appeals agents and former IRS taxes instructors.
Free consultations are available. Speak directly to tax attorneys, CPAs were former IRS agents.
We taught Tax Law, Tax Policy and Offers in Compromise at the IRS.
As a result we know of all the tax policies, tax settlement and all the federal tax Levy garnishment procedures to get you immediate tax relief to get removal of a federal tax Levy garnishment.
You should know that a 668W Federal Tax Levy Garnishment is a continual wage garnishment.
This Federal Tax Levy will not stop until you contact the IRS and give them an updated financial statement.
IRS will analyze your current financial statement along with complete documentation and make a determination as to how they will go ahead and close your case off the IRS enforcement computer.
There are three different ways the IRS will close your case off the enforcement computer.
IRS will either put you in a tax hardship, are they will enter you into an installment agreement or they will contemplate an offer in compromise.
Contact us today for further details and we will give you a free tax consultation to go over all the tax options on how to best remedy your case.
What is in IRS tax Levy
A levy is a legal seizure of your property to satisfy a tax debt.
Levies are different from liens.
A federal tax lien is a claim used as security for the tax debt, while a levy or federal tax garnishment actually takes the property to satisfy the tax debt. In this case it takes your wages.
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 seizure power
IRS can and will seize and sell property that you hold such as your car, boat, or house or
could 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 seize almost anything.
Before IRS can Federal Tax Levy or Garnish they must
These three requirements are met:
1. The IRS must assess the tax and sent you a Notice and Demand for Payment,
2. You must neglect or refused to pay the tax and,
3. The IRS must send 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.
IRS delivery of the final notice of Intent to Levy or Garnish
IRS has options. They may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested.
Note: if the IRS levies your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
If we determine the levy is creating an immediate economic hardship, the levy may be released.
Call us today for more details on getting tax relief from a federal tax Levy garnishment due to an economic tax hardship.
A levy release does not mean you are exempt from paying the balance.
The IRS will work with you to establish payment plans or take other steps to help you pay off the balance. To help ensure quick action, please have the fax number available for the bank or employer office that is processing the levy.
You can always ask an IRS manager to review your case
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:
1. You paid all you owed before we sent the levy notice,
2. We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
3. We made a procedural error in an assessment,
The time to collect the tax (called the statute of limitations) expired before we sent the levy notice,
4. You did not have an opportunity to dispute the assessed liability,
5. You wish to discuss the collection options, or
6. You wish to make a spousal defense. Spousal defenses usually result of a taxpayer filing for innocent spouse tax relief.
See our website for more of this issue.
The IRS office of appeals on federal tax levy garnishments
At the conclusion of your hearing, the Office of Appeals will issue a determination. You will have 30 days after the determination date to bring a suit to contest the determination. Refer to Publication 1660 (PDF), for more information.
If your property is levied or seized, contact the employee who took the action.
You also may ask the manager to review your case. If the matter is still unresolved, the manager can explain your rights to appeal to the Office of Appeals.
If we levy your wages, salary, federal payments or state refunds, the levy will end when:
a. The levy is released,
b. You pay your tax debt, or
c. The time expires for legally collecting the tax. The statute of limitations on most IRS tax assessments are 10 years from the initial date of assessment.
If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows time to resolve any issues about account ownership. After 21 days, the bank must send the money plus interest, if it applies, to the IRS.
On IRS levy on wages, the levy is a continuous garnishment on every paycheck you get until IRS releases the wage garnishment levy.
Contact us today for a tax consultation and get immediate tax relief.
Federal Tax Levy Garnishments – Remove Levy Garnishments NOW – Former IRS Agents
by Fresh Start Tax | Feb 19, 2013 | Tax Help
Payroll Tax Help IRS Problem – Tax Relief Attorneys, Former IRS 1-866-700-1040
If you are having a IRS payroll tax problem and you need tax help get tax relief from Tax Attorneys, CPAs, and former IRS agents, managers and tax instructors.
We have over 60 years of direct working knowledge and experience with the Internal Revenue Service of the local, district, and regional tax offices of the Internal Revenue Service.
We taught tax law at the Internal Revenue Service. We are payroll tax help experts.
We are A+ rated by the Better Business Bureau and we have free consultations available for any first-time clients.
IRS payroll tax problems
As a former IRS agent you should know that Internal Revenue Service pays very close attention to people who do not pay their payroll taxes.
The reason for this is simple, owing payroll taxes is about trust fund money or money that was held in trust by the employer.
In all reality this is not a tax but simply monies are to be turned over to the Internal Revenue Service. Because of this, IRS puts out quarterly alerts on any large dollar taxpayers that do not pay current payroll taxes.
These alerts are called FTD alerts. It is critical that before contacting IRS that you have all 941 tax returns filed and you are making current tax deposits.
You should also be aware that IRS has the ability to set up the trust fund penalty against those person or persons responsible for making deposits. Those individuals who fail to pay over the 941 payroll taxes can and will be held personally responsible for the money to the IRS.
On many large dollar cases the IRS also has the option of making criminal referrals.
If you will owe large dollars to the Internal Revenue Service as a result of payroll tax it is critical you contact a tax professional to go ahead to handle your IRS representation. Simple cases and low dollar cases those taxpayers can handle those on their own.
The trust fund recovery penalty
General rule for trust fund recovery
Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No penalty shall be imposed under section 6653 or part II of subchapter A of chapter 68 for any offense to which this section is applicable.
Preliminary notice requirement
In general
No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mail to an address as determined under section 6212 (b) or in person that the taxpayer shall be subject to an assessment of such penalty.
Timing of notice
The mailing of the notice described in paragraph (1) (or, in the case of such a notice delivered in person, such delivery) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days.
Statute of limitations
If a notice described in paragraph (1) with respect to any penalty is mailed or delivered in person before the expiration of the period provided by section 6501 for the assessment of such penalty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of—
1. the date 90 days after the date on which such notice was mailed or delivered in person, or
2. if there is a timely protest of the proposed assessment, the date 30 days after the Secretary makes a final administrative determination with respect to such protest.
IRS payroll tax problems
Federal Income Tax and Social Security and Medicare Taxes
You generally must withhold federal income tax from your employees’ wages. You withhold part of Social Security and Medicare taxes from your employees’ wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee’s Form W-4 and the methods described in Publication 15, Employer’s Tax Guide and Publication 15-A, Employer’s Supplemental Tax Guide (PDF).
Notice 1036 (PDF) contains the percentage method income tax withholding tables, the Social Security and Medicare tax withholding rates, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employers Tax Guide (PDF), contains the percentage method tables and the wage bracket tables that some employers use.
Employers should start using the new withholding tables as soon as possible in 2013, but not later than February 15, 2013.
Federal Unemployment (FUTA) Tax
You report and pay FUTA tax separately from Federal Income tax, and Social Security and Medicare taxes. You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay. Refer to Publication 15, Employer’s Tax Guide and Publication 15-A, Employer’s Supplemental Tax Guide (PDF) for more information on FUTA tax.
Employers in some states may owe more tax under the Federal Unemployment Tax Act (FUTA) than they expect if they operate in a credit reduction state. Employers in credit reduction states must increase the FUTA tax rate on wages subject to taxes under that state’s Unemployment Insurance (UI) program when they prepare their Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
by Fresh Start Tax | Feb 19, 2013 | Tax Help
IRS Tax Levy Resolution – Bank, Wage Levy Removals 1-866-700-1040
We are comprised of tax attorneys, CPAs, and former IRS agents, managers, and tax instructors.
We have over 60 years of working directly for the Internal Revenue Service in the local, district, and regional offices of the Internal Revenue Service.
While at IRS week we taught tax law. Let our years of experience work for you.
With this said. we know all the tax policies, tax procedures and the exact process IRS uses to release tax levies on your bank account or an IRS wage levy garnishment.
There is a very specific process to go ahead and get Tax Levy Resolution on IRS Tax Levy.
Please note:
Bank Levies have a 21 day hold and Wage Garnishment Levies are continuous.
As a general rule a professional firm should be able to get a levy released within days.
When money is owed to the IRS
Any time money is owed to the Internal Revenue Service the Service will want an updated financial statement.
Those financial statements will either be a 433-F or 433-A depending which unit is working your case.
If the case is at the service center the IRS will require a 433-F, if your case is being worked out the local IRS office with a revenue officer , the agent will require a form 433-A. The IRS will ask you to fully document the financial statement that is turned in to the IRS for review.
Upon the review of the financial statement the IRS will place your case in one of three category.
First category.
IRS will determine that you are a IRS tax hardship and you at this time cannot pay the tax. IRS will close the case off of enforcement collection computer and suspend your case for a period of of 2 to 3 years. It should be noted that penalties and interest continue to be paid on this tax liability until the case comes out to the field for a new review.
Category two.
IRS will determine you can make an installment agreement or a payment plan. IRS will make this determination based on your current income and expenses. If your income exceeds your current expenses IRS will want to surplus income turned over to them for a monthly installment payment.
Category three.
IRS may determine that you should file an offer in compromise Should you meet the stiff criteria to file for IRS tax debt settlement. No offer in compromise or IRS tax debt settlement should be set into Internal Revenue Service unless it is looked at by a true professional. Many taxpayers find themselves in trouble in doing offers and compromises by themselves. Many times they give IRS a road map right into their financial life.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
- IRS Tax Levy Resolution, Bank, wage Levy Removals
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE Net Radio.com – Monthly Radio Show-Business Weekly
IRS Tax Levy Resolution – Bank, Wage Levy Removals – Former IRS
by Fresh Start Tax | Feb 17, 2013 | Tax Levy and Wage Garnishments
TAX LEVY IRS – Stop the IRS Tax Levy with Former IRS Agents 1-866-700-1040
If you have received a Tax Levy from the Internal Revenue Service call us today and get your tax levy removed or released. We know the exact process that can get immediate releases.
We are former IRS agents, managers, and instructors with over 60 years of direct working knowledge and experience of the Internal Revenue Service
We worked on the local, district, and regional offices of the IRS.
We also taught Tax Law.
As a result of our years of experience we are both fast and affordable in the processing and stopping of a IRS tax Levy.
IRS will require a current financial statement along with complete documentation and with that in hand we can begin the quick and fast process of getting your IRS Tax Levy removed and stopped.
Tax issues that may arise as a result of an IRS tax Levy
Bank disputes with IRS tax levies
The Bank Liaison
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
A bank liaison in each territory to settle these issues quickly.
Sometimes ownership is not settled before the holding period ends.
If this happens, you may ask the bank for more time.
Multiple Signature Authority for a Bank Account
You should know from the very beginning that as long as you have signature authority in a bank account whether that bank account is in your name or not the IRS has a right to levy any money out of that account. IRS has the same privilege as any signator on the account.
A 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.
As noted in Treasury Regulation 301.6332–1(c)(4) the unrestricted right to withdraw funds is an interest which is subject to levy.
A working example
A bank is served with a notice of levy for an unpaid tax liability due from the taxpayer in the amount of $3,000. The bank holds $3,000 in a checking account in the names of a taxpayer and a third party.
Although all of the deposits into the account were made by the third party, the taxpayer has an unrestricted right to withdraw the funds from the account.
The bank may send the Internal Revenue Service the entire account balance at the end of the 21 day holding period.
A very important note about IRS tax levies
The bank is not liable to the third party for any amount, even if the third party proves that the funds in the account did not belong to the taxpayer, because the taxpayer’s unrestricted right to withdraw the funds is an interest which is subject to levy.
The third party may, however, seek the return of the funds from the United States by making an administrative wrongful levy claim under IRC 6343(b) or file a suit under IRC 7426(a)(1) should the administrative claim be denied.
A non-liable third party may claim ownership of funds in a bank account when multiple people hold signature authority for that bank account. This dispute should be treated as a 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.
For bank levies if additional time is needed beyond the 21 day hold period to determine ownership, there should be a request that the bank holds the funds.
Amount that Must be Surrendered as a result of a tax levy by the IRS
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.
However, it must send no more than the amount shown on the notice of levy.
By law, banks cannot immediately honor the IRS levy.
Another 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.
What if the Employer Threatens to Fire Taxpayer Because of a Tax Levy from the IRS
Sometimes an employer threatens to fire an employee to avoid handling a levy.
This might 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.
These cases should be referred by the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
668-Wage levies have a continuous effect -Continuous Effect of Levy on Salary and Wages
Unlike bank or other tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. It attaches to future payments, until the levy is released. Wages and salary include fees, bonuses, commissions, 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.
When other income is levied, the levy reaches payment the taxpayer has a fixed and determinable right to. If the taxpayer’s right to that payment is not dependent upon the performance of future services, then the levy will reach the future payments as well.
Royalty tax levies
A Form 668-A is issued to levy an author’s royalties. The author has a fixed and determinable right to royalties for books that have already been published. The levy reaches royalties for sales of those books in the future. The levy does not reach royalties for books that are written and published later. A new levy must be served to take those royalties.
A retirement income tax levy
A Form 668-W is issued to levy a taxpayer’s retirement income. The taxpayer has a fixed right to the future payments; therefore, the levy remains in effect until it is released.
Exempt Amount from tax levies by the IRS
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:
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.
Then, this total is divided by 52.
Income that is not paid weekly is prorated, so the same amount is exempt.
In addition, the amount the taxpayer needs to pay court ordered child support is exempt.
Note:
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Call us today and get fast and quick tax results. We are A+ rated by the Better Business Bureau and we are fast and affordable.
TAX LEVY IRS – Stop the IRS Tax Levy – Former IRS Agents, Quick and Affordable
by Fresh Start Tax | Feb 17, 2013 | Tax Help
Cannot Pay the IRS – There are Options – Former IRS Agents 1-866-700-1040
During these tough economic times many people are financially strapped and are having a hard time just making ends meet. IRS does not advertise this but it is very possible that you may qualify for an economic tax hardship with the Internal Revenue Service.
There are provisions within the Internal Revenue Service manual that allows for taxpayers that are going through a financial crisis to apply for this economic tax hardship and in doing so IRS will go ahead and put your case into a currently non-collectible file.
The Process
1. For this process to happen, the Internal Revenue Service will require a current financial statement. IRS will require either a 433-F or a 433 -A depending on which unit is currently working the case.
2. IRS will expect that this financial statement be correctly documented and also you will have to have all tax returns currently filed with the IRS.
3. IRS will also ask if you are currently making estimated tax payments or you have sufficient withholding being taken out so you will not owe taxes this year. IRS may ask you to adjust your current withholding to put you in a current tax hardship.
Should IRS determine that your case is a current hardship, IRS will put you into the currently noncollectable status. As a result your case will stay suspended for the next two or three years until your adjusted gross income reflects a change in your ability to pay the IRS.
When the CADE 2 computers of IRS finds that your AGI has sufficiently increased, your case will send the case back in to the billing cycle to be put back into the system once again.
SUMMARY OF ECONOMIC HARDSHIP
When the taxpayer’s liability can be collected in full, but collection of the federal tax would create an economic hardship, the IRS will consider all facts before taking collection action or enforcement action such as federal tax liens or federal tax levies.
The definition of economic hardship is derived from Treasury Regulations § 301.6343-1.
An Economic hardship occurs when a taxpayer is unable to pay reasonable basic living expenses.
The determination of a reasonable amount for basic living expenses will be made by the Internal Revenue Service and will vary according to the unique circumstances of every individual taxpayer.
Department of Labor Platforms
The IRS in accordance with the United States Departmental of Labor have set up platforms to determine these hardship and living standards. They can be found on our website.
These standards are also being used by the United States Department of Justice in the normal course of U.S. bankruptcy proceedings. Because economic hardship is defined as the inability to meet reasonable basic living expenses, it applies only to individuals (including sole proprietorship entities).
Compromise on economic hardship grounds is not available to corporations, partnerships, or other non-individual entities.
The taxpayer’s financial information and special circumstances must be examined by the Agent and fully documented to determine if they qualify for an economic hardship. All documentation must be in writing.
Financial analysis includes reviewing basic living expenses as well as other considerations. The IRS may go back for the last 3 years, examine all canceled checks and will complete a full asset check.
IRS will /may also examine credit reports and loan applications and sale of assets for the last 3 years.
The IRS will/can also look to see if the taxpayer has placed assets beyond the IRS reach.
In addition to the basic living expenses, other factors to consider that have impact upon the taxpayers financial condition include:
1. The taxpayers age and employment status,
2. Number, age, and health of the taxpayers dependents,
3. Cost of living in the area the taxpayer resides,
4. Any extraordinary circumstances such as special education expenses or natural disaster,
5. Medical situations that have effected the life of the taxpayer or others in his family,
6. The education of the taxpayer is sometimes considered as well.
This list is not all-inclusive. Other factors may be considered in making an economic hardship determination.
Other Factors
Other factors that support an economic hardship determination may include:
1. The taxpayer is incapable of earning a living because of a long term illness, medical condition or disability, and it is reasonably foreseeable that the financial resources will be exhausted providing for care and support during the course of the condition.
2. The taxpayer may have a set monthly income and no other means of support and the income is exhausted each month in providing for the care of dependents.
3. The taxpayer has assets, but is unable to borrow against the equity in those assets, and liquidation to pay the outstanding tax liabilities would render the taxpayer unable to meet basic living expenses.
4. Someone in the immediate family of the taxpayer has been hit with a catastrophe.
An act of God causing an unforeseen occurrence.
Remember, each situation is different and each and every case is based on its own merit. No two cases are ever the same.
Economic Hardship – IRS will release Levies
A tax levy is required to be released when the Service determines the levy is creating an economic hardship, i.e., the levy will cause the individual to be unable to pay their reasonable necessary living expenses.
In order to obtain a release of levy for economic hardship the taxpayer must act in good faith.
Examples of failure to act in good faith include, but are not limited to:
a. failing to make full disclosure of assets
b. inflating actual expenses or costs
c. falsifying financial information.
The decision to release a levy due to economic hardship requires financial analysis. The financial analysis requires sufficient financial information to confirm the levy is causing the taxpayer to be unable to meet necessary living expenses.
Cannot Pay the IRS – Economic Hardships – There are Options – Former IRS Agents
Fresh Start Tax comprised of tax attorneys, CPAs and former IRS agents. We have over 206 years professional experience in over 60 years of working directly for the Internal Revenue Service.
Call us today and hear all the options you have in resolving your case.1-866-700-1040.
