by Fresh Start Tax | Aug 6, 2013 | Tax Levy and Wage Garnishments
You may contact us today to find out how to stop your IRS bank levy.
We will give you free tax advice for any do-it-yourselves taxpayers.
If you received an IRS bank levy you are not alone.
The Internal Revenue Service sends out 2.9 million bank levies and wage levies last year alone.
The Internal Revenue Service sends these bank levies out because taxpayers failed to respond to last notice sent out by the Internal Revenue Service thus forcing IRS to play the heavy hand of enforcement given to them by Congress.
Without a human hand touching the IRS bank levy, the IRS Cade2 enforcement computer generates a bank levy to the taxpayers bank accounts that are found on the IRS computer systems.
The Internal Revenue Service has your bank information because banks report to the Internal Revenue Service the information on their account holders and those who receive interest income.
How to Stop a IRS Bank Levy
To stop in IRS bank levy, the IRS has a very specific procedure to get you immediate tax relief.
The Internal Revenue Service will need to review your current financial statement as well as your monthly living financial habits.
IRS will require a financial statement which is on the form of a 433-F.
You can find that form on our website.
IRS will require that the financial statement be completely documented along with bank statements, canceled checks and proof of income, they will want your pay stubs.
IRS will then compare that to the national and regional standards in your area to make sure the you are living within your means.
Once IRS reviews that financial statement there are three categories that are exit strategies used by the Internal Revenue Service. These settlement strategies will be appropriate for your case based on your financial statement.
The Internal Revenue Service will either put your case into:
- economic hardship,
- insist on a monthly installment payment or
- recommend that you were suitable and qualified candidate for an offer in compromise.
So the best way on how to stop an IRS bank levy is to contact the Internal Revenue Service provide the necessary financial information.
Once the Internal Revenue Service has all the financial information and has your exit strategy they will immediately release your levy. Believe it or not this can happen in one day.
Once you give us your current financial statement with all your documentation as a general rule we can get your levy released that day
The Bank Levy Holding Period
A bank must wait 21 calendar days after a levy is served before sending payment. Then, on the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process. “Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332–3(b).
During the holding period, a levy might be released, or the amount owed could decrease.
Note:
If the bank receives no release, it must send the payment after the holding period. No additional notice is required.
Bank Liaison for the IRS Bank Levy
The holding period was created to settle disputes about ownership of bank accounts before money is sent.
Assign a bank liaison in each territory to settle these issues quickly.
Sometimes ownership is not settled before the holding period ends. If this happens, ask the bank for more time.
How to STOP a IRS Bank LEVY – Free Tax Advice for Levy Releases
by Fresh Start Tax | Jul 26, 2013 | Tax Help
The Appeal System of the Internal Revenue Service.
Because people sometimes disagree on tax matters, the IRS has an appeal system. Most differences can be settled within this system without going to court and not only that is a much cheaper way to go ahead and resolve your IRS dispute.
Reasons for disagreeing must come within the scope of tax laws.
A case may be taken directly to tax court if the taxpayer does not want to appeal within the IRS.
Appeal or Resolution Within the IRS
The tax decision reached by the examiner may be appealed to a local appeals office, which is separate and independent of the IRS Office that conducted the examination. An appeals office is the only level of appeal within the IRS.
IRS Conferences with appeals office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative
Instructions for requesting a conference with an appeals officer are provided in the letter of proposed tax adjustment.
In FSLG, the Letter 950 is generally used to propose adjustments to employment taxes. It states that to request a conference with an appeals officer, the taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.
Whether you file a small case request or a formal written protest depends on several factors.
If a conference is requested the examiner will send the conference request letter to the appeals office to arrange for a conference at a convenient time and place. The taxpayer or its qualified representative should be prepared to discuss all disputed issues at the conference. Most differences are settled at this level.
Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals.
Making a Small Case Request
A small case request is appropriate if the total amount of tax, penalties, and interest for each tax period involved is $25,000 or less.
If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed. The total amount includes the proposed increase or decrease in tax and penalties or claimed refund.
To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree with and the reasons it does not agree with them.
Be sure to send the protest within the time limit specified in the letter you received, which is generally 30 days.
Filing a Formal IRS Protest or Appeals with the IRS
When a formal protest is required, it should be sent within the time limit specified in the letter. The following should be provided in the protest:
- Taxpayer’s name and address, and a daytime telephone number.
- A statement that taxpayer wants to appeal the IRS findings to the Appeals Office.
- A copy of the letter proposed tax adjustment.
- The tax periods or years involved.
- A list of the changes that the taxpayer does not agree with, and reason for disagreement.
- The facts supporting the taxpayer’s position on any issue that it does not agree with.
- The law or authority, if any, on which the taxpayer is relying.
The taxpayer must sign the written protest, stating that it is true, under the penalties of perjury as follows:
“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”
If the taxpayer’s representative prepares and signs the protest for the taxpayer, he or she must substitute a declaration stating:
- That he or she submitted the protest and accompanying documents and;.
- Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.
If you need to hire professional tax help to appeal or resolve your IRS dispute contact us today a you can speak directly to former IRS agents, managers and tax instructor.
Also on staff at Fresh Start Tax is a former IRS appeals agent who worked on the South Florida IRS appeals offices for over 25 years.
We also have on staff tax attorneys and CPAs for more complicated tax issues and cases involving tax court.
You can contact us today for a free initial tax consultation.
Appeal Resolve IRS Dispute – Former IRS Appeals Agents – Ft.Lauderdale, Miami, Palm Beaches – Florida
by Fresh Start Tax | Jun 11, 2013 | Tax Levy and Wage Garnishments
Payroll Garnishment Levy – Get your Money Back Now, Former IRS Agents Who Know the System, Find Out Now, Free Consults
If the Internal Revenue Service has just levied your paycheck call us today to get your money back and your case settled.
We are comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers, and tax instructors who worked in the local South Florida IRS offices for over 60 years.
We know the exact system on how to get your money back from the Internal Revenue Service, get your levy released and worked out a tax settlement.
The process to get your money back from IRS
If you have received a notice of levy on your payroll or wages it is because you did not respond to final notices that IRS sent to you at your last known address.
As a result, the Internal Revenue Service systemically sends out computer generated levies from their CADE2 to computer.
To get your payroll levy released, IRS will need a current financial statement.
That financial statement will be on form 433-F which you can find directly on our website.
You will need to fill out that 433-F along with all the documentation to verify all the numbers that you put down on the form along with the last 3 to 6 months worth of bank statements, copy pay stubs, and a verification of all your monthly bills.
Once IRS reviews your current financial statement they will begin the process to release your payroll levy.
IRS will compare your financial statement to the national, regional and geographical standards. It is very important for the taxpayer /client to understand the national standards tests.
IRS will then provide the information to you into which closing category as a result of the financial review.
As a general rule, IRS will either place you into a
- an economic tax hardship which means you are currently noncollectable,
- they will enter you into an installment or monthly payment agreement,
- or indicate to you that you are a suitable candidate for IRS tax debt settlement otherwise called an offer in compromise.
- Once IRS indicates to the closing settlement method , t hey will immediately release your payroll garnishment tax levy.
IRS Rules about Payroll Garnishment Tax Levy
An individual’s wages, salary, payroll and other income can be levied.
Wages, salary, and other income include payment for personal services in a work relationship.
Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
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 should refer to the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
The Really Bad News Continuous Effect of Levy on Salary and Wages
Unlike other IRS tax levies, a levy on a taxpayer’s wages and salary has a continuous effect. this means it never stops until the IRS issue your employer or release of the payroll garnishment levy.
It attaches to all future payments, until the levy is released.
Wages and salary include fees, bonuses, commissions, and similar items. All other levies only attach to property and rights to property that exist when the levy is served.
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. So the payroll garnishment levy is a much more punishing garnishment.
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.
Exempt Amounts
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.
Note:
The support order can originate from a court or administrative process under the laws and procedures of a state, territory or possession.
If you need an immediate release of a payroll garnishment levy contact us today.
We are A+ rated by the Better Business Bureau and have been in practice right here in South Florida since 1982.
We are the fast, friendly, and affordable tax firm comprised of local South Florida tax professionals.
Payroll Garnishment Levy – Get your Money Back – Ft.Lauderdale, Miami, Attorneys, Former IRS
by Fresh Start Tax | Jun 11, 2013 | Tax Levy and Wage Garnishments
IRS Levy – Bank Accounts, Miami, Ft.Lauderdale
If the IRS has sent a levy to your bank account or on your wages contact us today.
We can get your money back and your case settled.
We can get your IRS levy released as fast as anybody in the industry simply because of our years of experience and the numbers of IRS levies we have released over the years.
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and instructors who worked out of the South Florida IRS offices for over 60 years.
As a result of our years of experience we know the exact protocols to get an IRS levy whether it be a bank account levy or a wage garnishment levy released as soon as possible.
We have been in practice right here in South Florida since 1982 and we are A+ rated by the Better Business Bureau. Fresh start tax is an IRS specialty tax firm. All we do is resolve IRS problems.
The process of getting an IRS levy released
Certain steps must be taken to get an IRS levy released.
IRS will require a current financial statement which is on form 433-F.
You can find that form on our website. You will need to complete this financial statement and provide all necessary documentation to prove the validity of the financial statement.
Along with the completed financial statement IRS will require bank stubs, pay stubs, and a copy of all your monthly expenses.
IRS will then take that financial statement income and compare it against what is called as the national and regional standards test. You can find those national and regional standards on our website as well.
Contact us today for a free initial consultation and we can start the immediate process of getting your IRS tax levy released.
By Law, What is a Tax Levy
A levy is a legal seizure of your property to satisfy a back tax debt.
Tax levies are different from tax liens, the two are often confused.
A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt. It also should be known that a levy is an actual seizure.
If you do not pay your taxes the IRS may seize and sell any type of real or personal property that you own or have an interest in.
The IRS could seize and sell property that you hold such as your car, boat, or house, or
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. There are a few things that the Internal Revenue Service cannot seize.
Three requirements are met before an IRS levy can be issued:
1. The IRS has assessed the tax and sent you a Notice and Demand for Payment;
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.
How delivery of the Notice and demand must take place
The Internal Revenue Service 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 are in a financial Hardship
If the IRS determines the levy is creating an immediate economic hardship, the levy may be released.
A levy release does not mean you are exempt from paying the balance.
The IRS will work with you to establish payment plans or take other steps to help you pay off the balance.
Note to Employers on the IRS Wage Levy
Employers generally have at least one full pay period after receiving a Form 668-W, Notice of Levy on Wages, Salary and Other Income before they are required to send any funds from their employee’s wages.
The employers should 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.
You can ask the IRS Manager for help
You may ask an IRS manager to review your case, or you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a Collection Due Process hearing with the IRS office listed on your notice.
You must file your request within 30 days of the date on your notice. Some of the issues you may discuss include:
- You paid all you owed before we sent the levy notice,
- We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
- We made a procedural error in an assessment,
- The time to collect the tax (called the statute of limitations) expired before we sent the levy notice,
- You did not have an opportunity to dispute the assessed liability,
- You wish to discuss the collection options, or
- You wish to make a spousal defense.
It is very possible to get an IRS levy released within a 72 hour period.
Once Fresh Start Tax is retained and the tax payer provides us with the necessary documentation, as a general rule we can get the IRS levy, whether it be a bank account levy or a wage levy released the same day.
Fresh Start Tax, since 1982 A+ rated by the Better Business Bureau.
IRS Levy – Bank Accounts, Wage Levy – Miami, Ft.Lauderdale – Affordable, Fast – Attorneys, Former IRS
by Fresh Start Tax | Jun 6, 2013 | Tax Help
Need Back Tax Help Former South Florida IRS agents
We are local tax firm that specialize in IRS and State Tax Problems and Back Taxes.
If you are in South Florida and need back tax help call us today for a free initial tax consultation.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents, managers, tax instructors who worked right here in the local Fort Lauderdale and Miami Internal Revenue Service offices.
We are A+ rated by the Better Business Bureau and have been in private practice in South Florida since 1982.
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- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
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Areas of Professional Tax Practice:
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- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
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Miami – Need Back Tax Help – Affordable Former South Florida IRS Agents
