How To Get IRS Tax Bank Levy Released Immediately + Know the System

Fresh Start Tax

 

The IRS bank levy is the chief collection tool of the collection division to collect back taxes on taxpayers that have failed to pay.

 

The IRS over the years typically files anywhere between 1/2 a million to a million, both  Bank and wage garnishment levies.

It requires no manpower for the Internal Revenue Service to actually file an IRS bank lev, it is done systematically out of the IRS CADE2 computer.

The Internal Revenue Service keeps its levy sources by collecting  your financial information on their computerized system and recording it over the last six years, yes all 1099, W-2, and any financial institution that has required information to file with the Department of treasury appear on this system. Also if you have written a check to the Internal Revenue Service in the past six years records that is a levy source as well.

If you have not paid the Internal Revenue Service, a final notice of a  bank or wage garnishment levy is systematically filed.

The good news about the IRS bank levy is this, your money is frozen in the bank for 21 days, that is, you have 21 days to contact the Internal Revenue Service and they will issue a release of the bank levy but you have to know how to accomplish that and how to make sure that takes place within 21 days.

If the Internal Revenue Service has sent your bank a tax levy and you wish to get an immediate release, call us today. Since 1982.

 

We have over 200 years of professional tax experience, over 100 years of working directly for the Internal Revenue Service and our staff is composed of certified public accountants, enrolled agents, and former IRS agents, managers and teaching instructors.

We are true experts in IRS bank levies. As former IRS agents we have filed hundreds and hundreds of bank levies so we know the process of getting immediate releases of the documents.

When you call us we will give you a free initial tax consultation, walk you through the program and not only get you your IRS levy release but settle your case at the same time.

There is a very methodical way to get your IRS levy released.

THE HOW TO:

IRS will require a basic financial statement along with documentation and after review decide whether to put you into a currently not collectible, payment agreement or may encourage you to file an offer in compromise.

The Internal Revenue Service will have to be contacted and complete documentation of your current financial statement must be given to the Internal Revenue Service or they will make an immediate determination if the financial statement is complete.

We generally immediately send in a power of attorney for all our clients complete and prepare the financial statement along with the documentation, call the Internal Revenue Service and get immediate releases of the federal bank or wage garnishment levies.

After a review your financial statement we will be able to set up a course of strategy and get your levy released immediately.

As a general rule within 24 hours of receiving your current financial statement we can get your bank levy released by the Internal Revenue Service.

Information you need to know about the IRS bank levy.

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

IRS Levies are different from IRS 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 levy can be issued?

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

• The IRS assessed the tax and sent you a Notice and Demand for Payment (a tax bill);

• You neglected or refused to pay the tax; and

• 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. If you have moved and not let the Internal Revenue Service know, many tax payers find themselves between a rock and a hard place because IRS sends the last final notice to the last filed address on the tax return.

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 a levy?

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). Or, the IRS could seize and sell property that you hold (such as your car, boat or house).

 

What if a levy on my wages, bank, or other account is causing a hardship?

If the levy on your wages is creating an immediate economic hardship, the levy must be released. If the levy on your bank account or other account is creating an immediate economic hardship, the levy may be released.

An economic hardship occurs when we have determined the levy prevents you from meeting basic, reasonable living expenses. In order for the IRS to determine if a levy is causing hardship, the IRS will usually need you to provide financial information so be prepared to provide it when you call.

A levy release does not mean you are exempt from paying the balance.

The IRS will work with you to establish a payment plan or take other steps to help you pay off the balance. To help ensure quick action, please have the fax number available for the employer, bank or other financial institution that is processing the levy.

When the levy is on a bank account, the Internal Revenue Code (IRC) provides a 21-day waiting period for complying with the levy.

The waiting period is intended to allow you 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 the mail. The date and time of delivery of the levy is the time when the levy is considered to have been made.

In the case of a bank levy, funds in the account are frozen as of the date and time the levy is received. Normally, the levy does not affect funds you add to your bank account after the date of the levy.

IRS Wage Levies may Follow

If the IRS levies (seizes) your wages, part of your wages will be sent to the IRS each pay period until:

• You make other arrangements to pay your overdue taxes,
• The amount of overdue taxes you owe is paid, or
• The levy is released.

Part of your wages may be exempt from the levy and the exempt amount will be paid to you. The exempt amount is based on the standard deduction and an “amount determined” calculated in part based on the number of dependents you are allowed for the year the levy is served.

The IRS mails Publication 1494 (PDF) with the levy which explains to your employer how to determine the amount exempt from levy.

Your employer will provide you with a Statement of Dependents and Filing Status to complete and return within three days. If you do not return the statement in three days, your exempt amount is figured as if you are married filing separately with no dependents (zero). If you have other income sources, the IRS may allocate the exemptions to the other income source and levy on 100% of the income from a particular employer.

Levies are different from liens.

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

A federal tax lien comes into being when the IRS accesses a tax against you and sends you a bill that you neglect or refuse to pay it. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.

You have the right to appeal if the IRS advises you of the intent to file a Notice of Federal Tax Lien. Your appeal rights are explained in IRS Publication 1660, Collection Appeal Rights (PDF).

When filed, the Notice of Federal Tax Lien is a public document that alerts other creditors that the IRS is asserting a secured claim against your assets.

Credit reporting agencies may find the Notice of Federal Tax Lien and include it in your credit report. An IRS levy is not a public record.

Call us today for a free initial tax consultation and speak to a true IRS tax expert regarding your IRS bank levy or wage levy garnishment.

We are one of the nation’s top defense tax firms.

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IRS Tax Debt Settlement / How To Settle With the IRS / Former Agents Explain the System

Fresh Start Tax

The chief way to settle your debt with the Internal Revenue Service is to file an offer in compromise. that is the program to settle with IRS.

 

There are many myths about the offer in compromise program. There are strict standards that the IRS employee before they accept an offer in compromise. I know because I’ve both accepted offers in compromise taught new employees to accept the offer in compromise or reject them and I know the system inside and out.

I suggest that every client or taxpayer before they file an offer in compromise either do one of two things.

Number one, call a true tax expert who knows the offer in compromise inside out or to fill out the IRS pre-qualifier tool for the offer in compromise.

If you’re calling a professional firm you want to make sure the representative has at least filed 100 offers. It takes a lot of experience and knowledge to get an offer in compromise through.  some are very simple and don’t need a lot of experience while others demand. expertise skill level.

The Internal Revenue Service spends several hours, much more than you think to accept an offer in compromise. As a general rule, the average agent can spend between 20 to 40 hours to accept an offer in compromise.

After that takes place, the revenue officer must convince their local supervisor, the area manager, and the General Counsel of Internal Revenue Service to accept the offer.

It literally goes back and forth in the system. Some exceptions do exist. Dollar amount has a lot to do in the direction your offer will take.

Why?  because all offers and compromise are a matter of public record.

That public record is available at eight regional IRS offices in the United States. Even though offers are open to public inspection only one person last year looked through the IRS offers in compromise files. IRS is not made electronic copies for review.

There is a base rule for Internal Revenue Service accepting an offer in compromise.

You must give IRS the total equity in all your assets before IRS will consider or contemplate the acceptance. Some exceptions exist, assets consist of houses, pension plans,  stock, business valuations, IRS wants to make sure you’re actually borrowing the money to settle.

If you are interested in filing an offer in compromise you can call us today for a free initial tax consultation and I will walk you through the process of the true IRS debt settlement called the offer in compromise.

FACTS:

IRS last year accepted approximately  30,000 offers in compromise in approximately 75,000 were accepted. The average settlement was $9500.

Don’t let this average settlement fool you, it’s based on an average of all the offers accepted.

Offers in compromise are excepted by formula  not by judgment.

The basic formula are the total value of your assets times what you have left over a month on a current income and expense statement times the number of months left in the statute. Some exceptions do apply

 

 Due diligence that can be used by IRS.

You want to make sure your financial statement is accurate.

IRS has a host of web-based tools that can search your assets, places were you work, your income, your real estate records, your car records, your business records, insurance records , financial statement you’ve given institutions, credit reports and financial statements you’ve given the credit companies.

Make sure you are very honest in the submission of your offer in compromise

 

 So what is an offer in compromise, a tax debt settlement

An offer in compromise allows you to settle your tax debt for less than the full amount you owe.

It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship.

IRS consider your unique set of facts and circumstances:
• Ability to pay;
• Income;
• Expenses; and
• Asset equity.

IRS generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time.

The Offer in Compromise program is not for everyone.

If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.

Make sure you are eligible

Before IRS can consider your offer, you must be current with all filing and payment requirements.

You are not eligible if you are in an open bankruptcy proceeding.

Use the Offer in Compromise Pre-Qualifier to confirm your eligibility and prepare a preliminary proposal.

Submit your offer

You’ll find step-by-step instructions and all the forms for submitting an offer in the Offer in Compromise Booklet, Form 656-B (PDF).  Your completed offer package will include:

• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms;

• Form 656(s) – individual and business tax debt (Corporation/ LLC/ Partnership) must be submitted on separate Form 656;

• $186 application fee (non-refundable); and

• Initial payment (non-refundable) for each Form 656.

Select a payment option

Your initial payment will vary based on your offer and the payment option you choose:

• Lump Sum Cash: Submit an initial payment of 20 percent of the total offer amount with your application. If your offer is accepted, you will receive written confirmation. Any remaining balance due on the offer is paid in five or fewer payments.

• Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer. See your application package for details.

Understand the process

While your offer is being evaluated:

• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.

If your offer is accepted

• You must meet all the Offer Terms listed in Section 8 of Form 656, including filing all required tax returns and making all payments;
• Any refunds due within the calendar year in which your offer is accepted will be applied to your tax debt;
• Federal tax liens are not released until your offer terms are satisfied; and
• Certain offer information is available for public review by requesting a copy of a public inspection file.
If your offer is rejected
• You may appeal a rejection within 30 days using Request for Appeal of Offer in Compromise, Form 13711 (PDF).

 

Have any questions, call us today for a free initial tax consultation and speak to a true IRS tax expert on how to settle an IRS tax debt with former IRS agents