by steve | Nov 19, 2010 | IRS Tax Advice
Being a former IRS Agent, this question and discussion comes up about once a week.
There is a lot of confusion about the IRS Bank Levy and how much the IRS can take as well as, when does the bank have to release those funds.
This this article serve to clarify the confusion that exists about this situation. You can find this information at IRS IRM 5.11.4.3 in case you must present this to banks or financial institutions who usually have no clue about the law in this area
The relative questions that exist in this area:
How much must be surrendered to the IRS when the bank receives the levy?
The financial institution or bank must surrender the amount in the taxpayer’s bank account checking or saving accounts. A 668A (c) bank levy or garnishment attaches to any property or rights to property.
The bank or financial institution may send no more than the amount listed on the federal tax levy.
This seems obvious but some banks have been known to send the entire amount in the bank account at the time in the levy.
It is important to note that the IRS may take such enforcement action only after a Federal Tax Lien has been filed against the taxpayer.
2. How long is the bank required to hold in money for before turning it over to the IRS?
The bank is required by law to hold the money or funds in the account for a period of 21 days. The reason for this is simple.
It gives the taxpayer time enough to clear up the problem and get the tax levy released.
3. How does the bank determine when and how much to give the IRS?
When the Notice of Levy is received by the bank, that is the cut off period. It is that day only. Money deposited later is cannot be given to the Internal Revenue Service.
Another tax levy ( 668A(c) must be served to garnish these funds . Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
As side note or caution to the bank or financial institution. Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
by steve | Nov 19, 2010 | IRS Tax Advice
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Information about Offers in Compromise. This is the base information for the acceptance process to begin. To get your offer in compromise accepted you must met the Standards tests.
Review of Doubt as to Collectibility Offers
1 .Legal Basis for Compromise. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the assessed liability.
2.Policy Regarding Acceptance of Amount Offered. Where doubt as to collectibility of the tax has been established, an offer in compromise is generally considered acceptable if it closely approximates the amount that could reasonably be collected by other means, including the Service’s administrative and judicial collection powers. No asset should be eliminated from consideration or valued at zero simply because the Service would be unlikely to seize the asset
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4.Special Circumstance or Effective tax administration The IRS policies and procedures recognize that it may be appropriate in some cases for the IRS to accept an offer of less than the total reasonable collection potential of a case. These are known as “special circumstances” cases of effect tax administration. The IRS anticipates acceptance of less than reasonable collection potential in cases where, despite the proper application of the Service’s allowable expense standards and asset valuation rules, the taxpayer could not pay the full reasonable collection potential without suffering economic hardship.
5.Economic hardship defined. The inability to meet reasonable basic living expenses. Economic hardship does not include mere inconvenience or the inability to maintain a luxurious or affluent standard of living. Under the Service’s procedures, the amount accepted should reflect what could reasonably be collected less the amount a taxpayer must retain to avoid economic hardship.
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- Offers in Compromise/Settlements
- Back Tax Relief
- Bank Garnishments or Tax Levies
- Wages Garnishments or Levies
- IRS Notices of Intent to Levy or Final Notices
- IRS Tax Audits
- Hardships Cases, Payment Plans
- Innocent Spouse
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/ 6672
by steve | Nov 19, 2010 | IRS Tax Advice
Fresh Start Tax 1-866-700-1040 , the highest rated BBB tax resolution company. We can get you offer in compromise accepted.
I am a former IRS Agent who worked the Offer in Compromise Program for 10 years when I was employed at the Internal Revenue Service. I am a true tax expert in the area of Offers in Compromise. Not only did I work the Offer in Compromise program I also was a certified instructor with the IRS. I know all the strategies used by IRS to get your OIC accepted for the lowest possible amount. I know how to get your offer in compromise accepted.
Information about Offers in Compromise. This is the base information for the acceptance process to begin. To get your offer in compromise accepted you must met the Standards tests.
Review of Doubt as to Collectibility Offers
1 .Legal Basis for Compromise. Doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the assessed liability.
2.Policy Regarding Acceptance of Amount Offered. Where doubt as to collectibility of the tax has been established, an offer in compromise is generally considered acceptable if it closely approximates the amount that could reasonably be collected by other means, including the Service’s administrative and judicial collection powers. No asset should be eliminated from consideration or valued at zero simply because the Service would be unlikely to seize the asset
3.Financial Analysis.The IRS field office does a through review of all income and expenses before an OIC is accepted.Call Fresh Start Tax for a through analysis of your case.
4.Special Circumstance or Effective tax administration The IRS policies and procedures recognize that it may be appropriate in some cases for the IRS to accept an offer of less than the total reasonable collection potential of a case. These are known as “special circumstances” cases of effect tax administration. The IRS anticipates acceptance of less than reasonable collection potential in cases where, despite the proper application of the Service’s allowable expense standards and asset valuation rules, the taxpayer could not pay the full reasonable collection potential without suffering economic hardship.
5.Economic hardship defined. The inability to meet reasonable basic living expenses. Economic hardship does not include mere inconvenience or the inability to maintain a luxurious or affluent standard of living. Under the Service’s procedures, the amount accepted should reflect what could reasonably be collected less the amount a taxpayer must retain to avoid economic hardship.
Our Company Resume:
- Our staff has over 110 years of professional tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
- Highest Rating by the Better Business Bureau ” A ”
- Extremely ethical and moral principles used
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Premium on client communication
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies. Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Back Tax Relief
- Bank Garnishments or Tax Levies
- Wages Garnishments or Levies
- IRS Notices of Intent to Levy or Final Notices
- IRS Tax Audits
- Hardships Cases, Payment Plans
- Innocent Spouse
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/ 6672
by steve | Nov 19, 2010 | IRS Tax Advice
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How to stop the IRS Enforcement Computer System . WAGE GARNISHMENT AND BANK LEVIES
IRS requires three specific things to stop enforcement action. IRS will need:
- IRS will need ALL tax returns filed and brought current. IRS will not release any tax levies until this happens.
- IRS will need a current financial statement, a 433F, with documentation to verify the financial statement is correct.
- IRS will need to know how you are planning to close your case. The Three options in closing your case are :
- that you are under a current hardship and cannot pay at this time
- that you want to enter into a installment agreement or payment plan with the IRS
- that you want to file a quality offer in compromise with the IRS
There is one other option if we find the IRS no willing to cooperate. we can contact:
The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. The National Taxpayer Advocate, Nina Olson, heads the program. Each state and campus has at least one local Taxpayer Advocate, who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. The goals of the Taxpayer Advocate Service are to protect individual and business taxpayer rights and to reduce taxpayer burden. The Taxpayer Advocate independently represents your interests and concerns within the IRS. This is accomplished in two ways:
* Ensuring that taxpayer problems which have not been resolved through normal channels, are promptly and fairly handled;
* Identifying issues that increase burden or create problems for taxpayers: Bringing those issues to the attention of IRS management and making legislative proposals where necessary.
So if you are having a problem or need help with the Internal Revenue Service, call us today. Video conferencing also available
by steve | Nov 18, 2010 | IRS Tax Advice
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We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service.
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* Offers in Compromise/Settlements
* Back Tax Relief
* Bank Garnishments or Tax Levies
* Wages Garnishments or Levies
* IRS Notices of Intent to Levy or Final Notices
* IRS Tax Audits
* Hardships Cases, Payment Plans
* Innocent Spouse
* Abatement of Penalties and Interest
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by steve | Nov 18, 2010 | IRS Tax Advice
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- Extremely ethical and moral principles used
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Premium on client communication
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
Fresh Start Tax is one of the premier tax resolutions firms in the country.
We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations.
We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies.
Some of our many specialties include the following:
- Immediate Tax Representation
- Offers in Compromise/Settlements
- Back Tax Relief
- Bank Garnishments or Tax Levies
- Wages Garnishments or Levies
- IRS Notices of Intent to Levy or Final Notices
- IRS Tax Audits
- Hardships Cases, Payment Plans
- Innocent Spouse
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Trust Fund Penalty Cases/ 6672
