So you got an IRS tax levy? You are not alone.
Last year the IRS sent out 1.8 million bank and wage garnishment tax levies to taxpayers. The IRS sends these levies out by a completely automated driven ” Date System.”
They follow a strict set of standards when sending Bank or Wage Garnishment levies out. If they say the federal tax levy is being sent, it will be sent. Not a human hand touches these levies as they are all automated.
You may ask, how do they know where to send the levy?
You have given them that information. Your tax return is the source of the IRS levy information.
On your tax return is income information from 1099 and W-2 wage sources. The IRS simply sends the levies out to those sources on your tax return. There is no CSI investigation or a blanket sweep of banks. Just your tax return.
The IRS sends all taxpayers at least 4 notices that you owe tax. The last notice is called the Intent to Levy. You will have 30 days to respond to this notice or bill.
This is your next step.
Before you call the IRS, serious thought should be given to hiring a professional tax firm that has extensive IRS experience.
Do not use a tax mill. A tax mill is a major company that hires sales persons that get a commission to bring your case into the company they work for. They know nothing about tax law. Ask to speak directly to the person that will handle your case and question them on their IRS work experience.
The next thing you need to do is to make sure all tax returns are filed and current. If they are not filed, ask the IRS for more time to get your returns in. The IRS will not close out your case unless all tax returns are filed.
Next, fill out a 433-F, an IRS financial statement. Be prepared to document the financial statement. The IRS will want total proof of all income and expenses listed.
Once you have that in order, you are ready to call the IRS. 1-800-829-3903
Big Caution….. the IRS uses the national standards tests for every location in the United States. They will ask for your income and allow the national standards for your area. They will subtract your expenses from your income and if there is a surplus, that will be your monthly payment to the IRS. If your expenses outweigh your income, your case can be put in hardship.
If you are not sure about this process, call a tax professional to walk you through this. It is the most important part of the process in closing your case.
The IRS will probably close your case with the following ways.
1. filing of an offer in compromise
2. a part payment agreement or
3. your case could be put in hardship.
Good Luck!
