Tax Help | Fresh Start Tax

Employers + Received a Wage Garnishment on Employee or Vendor, This is what to do

by Jim Magary | Mar 14, 2016 | Tax Help

What if I Get a Levy Against One of My Employees, Vendors, Customers, or Other Third Parties?

We are former IRS agents, managers and tax instructors.

If one of your employees have received an IRS wage garnishment and unique questions answered call us today for a free initial tax consultation.

We can get a levy release for your employee or vendor.

Employers

If you get a levy against one of your employees, vendors, customers, or other third party, you must turn over to the IRS any property you have that belongs to the person levied against. The IRS uses the levy forms described below.

Regardless of the IRS form used, a levy attaches to property or rights to property you hold that belongs to the person levied against.

In general, the IRS uses the levy form that contains the most appropriate instructions about how to comply with the levy. Please read the instructions on the levy carefully.

The IRS generally uses Form 668–W(ICS) or 668-W(C)DO to levy an individual’s wages, salary (including fees, bonuses, commissions, and similar items) or other income.

Form 668-W(ICS) and/or 668-W(C)(DO) also provides notice of levy on a taxpayer’s benefit or retirement income.

The IRS generally uses Form 668–A(C)DO to levy other property that a third party is holding. For example, this form is used to levy bank accounts and business receivables.

Employers generally have at least one full pay period after receiving a Form 668-W(ICS) or 668-W(C)DO, Notice of Levy on Wages, Salary and Other Income (or other levy form) before they are required to send any funds from their employee’s wages to the IRS.

Encourage your employees that have a levy placed on their wages to contact the IRS as soon as possible to discuss a release of levy and resolution of their tax liability.
Wage levies are continuous

The Internal Revenue Code allows for continuous levies with respect to wages, salaries and certain other types of property. This means that a levy on wages and salaries continuously attaches until it is released.

Examples of property continuously attached include:

1. Salary and wages, and
2. Deferred compensation payments, such as retirement or pension income

Amount owed

Levy forms include a “Total Amount Due.” This amount is calculated through the date shown below the total amount due.

Interest and any applicable penalties will continue to accrue after the date shown. To get an updated payoff figure, the person who owes the tax liability will need to contact the IRS.

This information cannot be released to the employer.

A continuous wage levy may last for some time. When all the tax shown on the levy is paid in full, the IRS will issue a Form 668-D, Release of Levy/Release of Property from Levy. The IRS may also release a levy if the taxpayer makes other arrangements to pay their tax debt.

Wage levy exempt amount

In the case of a levy on wages, the employer will pay the employee any amounts exempt from levy.

The IRS calculates the exempt amount based on the standard deduction and the number of personal exemptions the employee is allowed. IRS Publication 1494 (PDF), which is mailed with the Form 668-W(ICS) or 668-W(C)DO, explains to the employer how to compute the amount exempt from levy.

A levy includes a Statement of Exemptions and Filing Status. The employer gives this statement to the employee to complete and return within three days.

If the employer does not receive the statement in three days, the exempt amount is figured as if the person is married filing separately with one exemption.

The IRS will notify the employer when the taxpayer is not entitled to levy exemptions.

If a wage levy continues from one calendar year to the next, the employee may submit a new Statement of Exemptions and Filing Status and ask their employer to re-compute the exempt amount.

Bank and other levies

When the levy is on a bank, credit union or similar account, the Internal Revenue Code provides for a 21-day waiting period before the bank must comply with the levy.

The waiting period allows the taxpayer time to contact the IRS and arrange to pay the tax or notify the IRS of errors in the levy.

Generally, IRS levies are delivered via U.S. mail. The date and time of delivery of the levy is the time when the levy is considered to have been made.

This means funds in the account are frozen as of the date and time the levy is received. Normally, the levy does not affect funds deposited to the account after the date of the levy.

If a release of levy from the IRS is not received within 21 days of receipt of the levy, funds in the account as of the date and time the levy was received must be sent to the IRS.

Follow the instructions on the levy form for remitting levy payments.

How To Get a IRS BANK LEVY RELEASED NOW + Help Now + Former IRS

by Jim Magary | Mar 14, 2016 | Tax Help

We are affordable professional tax firm that can stop an IRS tax levy immediately. Since 1982 A+ rated by the BBB.

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We are composed of CPAs and former IRS agents who have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.

There is a very specific system used to get an IRS tax levy released, whether it be a bank levy or wage garnishment levy. Being former IRS agents we know the system.

Not only were we former IRS agents and teaching instructors we also taught new IRS agents or jobs. We understand all the systems, formulas, and all the protocols to get an immediate relief of a IRS tax levy.

Knowing the system makes this a streamlined process and is able to get faster and quicker tax relief.

We can stop your IRS tax levy right now and settle your case at the same time.

Within 24 hours of receiving your current documented financial statement we can get an IRS bank levy or wage garnishment levy released and settle your case all at the same time.

You should know that IRS finds no joy in issuing bank and wage garnishment levies.

It simply does so because taxpayers did not respond to final IRS notices. Per the IRM IRS must follow up with enforcement action. IRS collects billions of dollars a year through the enforcement tool of an IRS bank and wage garnishment levy.

IRS will close and settle your case generally one of three ways.

After a review of your current financial statement (433f ) IRS will place you either into :

1.currently not collectible status,

2. ask you for a monthly payment agreement or

3. you could submit an offer in compromise if you are a qualified and suitable candidate.

We will review with you your options to find out which is the best fit based on your current financial condition. Remember, your documented financial statement holds the key.

Call us today for a free initial tax consultation.

First of All, what is a IRS Tax Levy?

A levy is a legal seizure of your property to satisfy a tax debt.

Levies are different from liens.

A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.

Where does Internal Revenue Service (IRS) authority to levy originate?

The Internal Revenue Code (IRC) authorizes levies to collect delinquent tax. See IRC 6331. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.

What actions must the Internal Revenue Service take before a IRS tax levy can be issued?

The IRS will usually levy only after these three requirements are met:

1• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);
2• You neglected or refused to pay the tax; and
3• The 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.

The IRS 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.

Please 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.

When will the IRS issue IRS tax levies?

If you do not pay your taxes (or make arrangements to settle your debt), and the IRS determines that a levy is the next appropriate action, the IRS may levy any property or right to property you own or have an interest in.

For instance, the IRS 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).

Call us today and hear the truth about your case.

Stop your IRS tax levy within 48 hours and settle your case at the same time.

How To Get a IRS BANK LEVY RELEASED NOW + Former IRS

IRS Tax Levy Help Defense + Stop Tax Levies NOW + Bank, Wage Garnishments + Former IRS

by Jim Magary | Mar 14, 2016 | Tax Help

We are affordable professional tax firm that can stop an IRS tax levy immediately. Since 1982 A+ rated by the BBB.

We are your best course of action for IRS tax levy defense.

We are the affordable professional firm that knows the system inside and out.

We are composed of CPAs and former IRS agents who have over 65 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service.

There is a very specific system used to get an IRS tax levy released, whether it be a bank levy or wage garnishment levy. Being former IRS agents we know the system.

Not only were we former IRS agents and teaching instructors we also taught new IRS agents or jobs. When you have received an IRS tax levy it only makes sense to have former IRS agents provide you tax levy defense and case settlements all at the same time.

We understand all the systems, formulas, and all the protocols to get an immediate relief of a IRS tax levy.