Ten things you need to know about IRS Tax Levies.

1. IRS has a list of levy information for all taxpayers on their master computer, the information goes back seven years.
2. IRS gets the levy information from your 1040 tax return and attached documents, the W-2’s, 1099’s and and various other sources such as interest or dividend income information.
3. IRS has a record of all bank checks you have sent them and they keep this bank information on file.
4. IRS will send a federal levy 668(a) or 668(W) out 6 weeks after you have received your CP-504, Notice of Intent to Levy. The 6 week period starts from the date on the IRS letter or notice.
5. Whether you sign for the certified notice letter that IRS sends out or not, the 6 weeks still runs from the date on the letter.
6. IRS must give you a right to a hearing before the tax levy may be sent. This is a 30 day period of time for a tax hearing
7. IRS can and will send out multiple levies to bank accounts, Form 668(a) and on wages, Form 668(w).
8. An IRS bank levies, 668(a), is a 21 day freeze on funds in the account the day the levy hits the bank, this gives you 21 days to resolve the case.
9. A wage garnishment, 668(w), or levy on wages is continuous and will not be removed or released until the case is closed.
10. IRS will not release any levy until all tax returns are current.

What is the next step in the process after you have received a tax levy or Notice of Intent to Levy

• Contact Fresh Start Tax at 1.866.700.1040 and we will handle IRS for you;
• Make sure all tax returns are filed and you are current on all filings;
• Prepare and document an IRS financial statement, Form 433F.

The IRS Financial Statements, Form 433F

The IRS Financial Statements are the single biggest problem for taxpayers when trying to close their IRS case. It is this document “alone” and the corresponding documentation that determines the outcome of your case. The biggest cause of concern and problems comes from lack of knowledge in packaging the 433F. The lack of knowledge can significantly change the outcome of your case. Paying too much to the IRS can cause financial hardship. Be very aware that your lack of knowledge is IRS’s success.
 
 

Here are some tips for success for dealing with the IRS financial Statements

The 433 F “Financial Statement”

Form 433F is a financial Statement that is primarily used by the Automated Collection System of the Internal Revenue Service, also call the ASC Unit. The ACS Unit has offices set up in regions across the United States, but it works through an 1-800 telephone system. All calls to ACS are routed into one national telephone system. Those calls are routed to regions whose telephones lines are available to pick up. It is possible calls from Florida are worked in California. One benefit about this system is that it allows taxpayers on the East Coast to call up to 8:00 PM, Eastern Standard Time to handle their cases. The downside to this system is that it is almost impossible to close the case with one telephone call. Fresh Start Tax has the ability to make this happen.
What typically happens when you call the 1 800 telephone number is that the IRS agent asks you to complete the 433F with all supporting documentation. If you have all the 433F with the documentation you will fax it to the IRS agent directly. If you are missing one or more piece of information you must call back to submit the missing documents. You call the 1 800 telephone number again and talk to a different agent. You never get the first agent to work the case again. You have to go over the whole case again and at that time the second agent who reviews the 433F may ask for different documentation that the first agent never inquired about. This process can repeat itself over and over.
This is the most frustrating system in the world and IRS knows it. When you finally close your case with an agent it must be approved by a supervisor. In most cases the agent your working with will say “a supervisor will get back to you and let you know if it is approved”. Many times no supervisor calls. You must call them back, to find out if your case if closed. If you do not confirm that your case is closed, it is very possible the case will hit the enforced collection system of the IRS. If this happens a federal tax lien and/or federal tax levies on bank accounts and wage garnishment may take place. Always call back to confirm your case is closed. By the way, wait times on the phone can be up to 45 minutes. Mondays and after Holidays the wait time is big. You need to find the time and patience to call back.
 
 

The basic tips to close your case when calling the IRS using the 433F Financial Statement

• Complete every line on the 433F;
• Answer all questions. Write none or not applicable in boxes that do not apply to you;
• Have all documents ready to be faxed the IRS. Do not call them until all documents are ready to be faxed;
• Make sure you have bank statements, pay stubs and supporting documentation for expenses;
• When IRS tells you they need managerial approval to close your case, make sure you contact them back or your case will still be open in the system. Do not assume the case will close itself.

Other Key Tips:

• IRS will ask you for the last three months income statement or pay stubs. However this could have been your largest months of income. If this is the case, send them the entire year or past 6 months whichever lowers your average income. Use the lowest period of income to prove your case;
• If you are going through a time of financial hardship or other difficult times, the 433F does not ask for that, but send it to them as part of the package. Remember, IRS does not know your circumstances so by all means show it to them;
• Show past medical bills or other debt you are facing. Remember, paint the picture for them.

 
Fresh Start Tax are professional experts in this field. We can get you your very best result.
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