IRS Notice of Levy on Wages – Get Fast, Affordable Tax Relief – Former IRS Agents 1-866-700-1040.
If you have received a IRS notice of levy on your wages contact us today and we can go over all the tax options you have to get permanent and immediate IRS tax relief.
The Internal Revenue Service will send out a notice of levy on your wages if you have not responded to an IRS letter, IRS notice, or IRS tax bill.
The IRS notice of levy on wages is a continual tax garnishment of your wages and your employer may not release the levy on your wages until it receives an official release of levy from the Internal Revenue Service.
As a general rule you can get your wage levy garnishment released within 72 hours if you can provide the information and documentation the IRS requires.
IRS will require a current financial statement and will require that all tax returns are filed in the current in the year. The IRS will also will want to make sure your financial statement is completely documented.
As a general rule you can simply call the one 800 number on your tax bill make direct contact with an agent and fax all the information to the agent.
The agent will have to close out your case with one of in their three clothing methods.
IRS Closing methods:
IRS will either put your case in:
1. a tax hardship,
2. IRS will advise you that your case could be a possible IRS tax settlement or a offer in compromise,
3. or the IRS may require an installment payment from you.
Your current financial statement will determine the closing method IRS will use on your case.
Can you be fired from your job.
Can a Employer Threatens to Fire Taxpayer Because of a Levy?
Sometimes an employer threatens to fire an employee to avoid handling a levy.
This might be a violation of 15 USC 1674. Each case is different in there is no rule of thumb.
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.
You will refer the to the Wage and Hour Division of the Department of Labor (DOL).
The Department of Labor not IRS, must decide if the employer violated the law.
Levy on Wages is a Continuous Effect of Levy on Salary and Wages
Unlike other IRS tax levies, a tax wage levy on a taxpayer’s wages and salary has a continuous effect. Yes, forever!
It attaches to future payments, until the levy is released.
It includes wages and salary include fees, bonuses, commissions, and similar items. Should you have any questions on this call us today.
All other tax levies only attach to property and rights to property that exist when the levy is served.
Examples on this issue:
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. Keep in mind the date, place, and time of service is very important.
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.
Retirement, Royalties.
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. IRS will have to serve notice on a 668-a.
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 the Levy on Wages
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.
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
Claiming the Exempt Amount
The Notice of Levy on Wages, Salary, and Other Income (Form 668-W) was developed for use when an individual may be entitled to the minimum exemption from levy in IRC 6334(a)(9) and includes a Statement of Exemptions and Filing Status.
The employer gives the statement to the taxpayer to complete and return within three days.
If it is not received by then, the exempt amount is figured as if the taxpayer is married filing separate with one exemption.
The taxpayer can give the statement to the employer later to change the exempt amount.
The employer needs to use this statement rather than the employee’s W–4, Employee’s Withholding Certificate.
Taxpayers may claim different exemptions for withholding from those claimed on their return.
Publication 1494- tax tables
Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income – Forms 668-W(ACS), 668-W(c)(DO) and 668-W(ICS), is sent with the levy to help figure the exempt amount.
The taxpayer can give a new statement to the employer later to have the exempt amount recomputed.
Side-notes.
1. The taxpayer’s filing status or personal exemptions may change.
2. There may be a change in exempt rates in a new year.
Exempt Amounts
The statement is completed under penalty of perjury.
Accept the information on the statement, unless there is reason to question it. If exemptions are disallowed, notify the employer and the taxpayer in writing.
The taxpayer can provide evidence that the statement is right and request managerial review.
Include a statement that the taxpayer may provide evidence to prove the statement is accurate and may request a managerial review of the dis-allowance.
IRS Notice of Levy on Wages – Get Fast, Affordable Tax Relief – Former IRS Agents
