IRS Tax Levy and Garnishment Relief

by Louis Meeks on December 15, 2014 in Blog

IRS Tax Levy and Garnishment Relief

In the tax world, the terms IRS tax levy and garnishment relief can get tossed around a lot, but they mean essentially the same thing: the IRS is going use its authority to seize money owed to it by a taxpayer, typically from a bank account or the taxpayer’s wages.

When a taxpayer is levied, they typically receive a number of notices prior to the levy going into place. The language varies based on the stage of the collection process the taxpayer is in, but generally it will include amounts owed, and deadlines for responding before the IRS will proceed with the levy. These deadlines are for real, and taxpayers need to keep a close eye on them to avoid the levy.

How to avoid a levy or garnishment before it happens:

Typically, with enough notice and concerted effort by the taxpayer, levies can be avoided before they are even issued. Taxpayers are encouraged to reach out to the IRS and work out a payment arrangement to satisfy the past due taxes, or seek an alternative resolution based on a financial hardship (e.g. currently non-collectible status, an Offer in Compromise, etc.). As long as taxpayers actively respond and meet their deadlines, and ultimately resolve their issues with the IRS, levies can be avoided.

IRS Tax Levy and Garnishment Relief:

Once a levy is in place on money, it is often more difficult to get the levy or garnishment released. As a general rule, the IRS will only release a levy under one of two circumstances:

1. Pay the amount owed in full
2. You enter into a payment or hardship agreement with the IRS

For most taxpayers with significant tax debt, the only way to release an IRS tax levy or garnishment is to enter into a payment agreement with the IRS. “Hardship agreement” is an umbrella term, referring to either Currently Non-Collectible Status (where the IRS seeks no money on a monthly basis for a limited period of time), an Offer in Compromise (where the IRS agrees to accept less than what is owed, based on the taxpayer’s reasonable collection potential), or finally, a partial payment installment agreement (in which the IRS accepts a smaller monthly payment that will never fully satisfy the debt).

The type of agreement that is best suited for the taxpayer varies greatly depending on the taxpayer’s individual financial circumstances, and the overall amounts owed. Because there are a variety of options available to taxpayers, if you owe significant amounts of debt, it is likely in your best interest to contact a tax attorney to better explain your options.

One final note to consider: If the IRS levies a bank account, rather than wages, it can often be more difficult to recover the levied amounts. Once a bank account is levied, the bank will hold onto the proceeds for 21 days before forwarding the money to the IRS. During those 21 days, the taxpayer can attempt to resolve the issue. However, reversing bank levies often requires a pressing financial emergency or the like before the IRS will recant. With that in mind, it’s just one more reason being proactive about tax problems is almost always in your best interests.

If your wages or bank accounts have been subject to an IRS tax levy or garnishment, please contact the tax professionals at Victory Tax Solutions. Our team of experienced tax attorneys will be able to accurately assess your problem and make recommendations that better suit you, and may help avoid or release a pressing tax levy or garnishment. We can be reached at 877-772-0123.

©2014VictoryTaxSolutions.com
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IRS Tax Attorney For Federal Tax Matters

by Louis Meeks on December 15, 2014 in Blog

WHY AN IRS TAX ATTORNEY SHOULD BE YOUR FIRST CALL FOR ANY FEDERAL TAX MATTER

When you receive a notice from the Internal Revenue Service for taxes owed, they prominently display that the amount owed is “due immediately.”  Most likely, the amount asserted by the IRS is more than something that you can pay outright.  Upon further review of the notice, you find that they do provide a telephone number for contact.  You then wonder, should I go ahead and contact them immediately, even if I plan on talking to an IRS tax attorney regarding this debt?

If you cannot fully pay and/or have some questions about the source and/or amount of the liability asserted in the notice, STOP – don’t dial that IRS contact number.  Although the notice may indicate that “immediate action” is necessary, the truth is, in many circumstances, that any sort of collection action such as garnishment or tax liens may not actually be scheduled to occur for months later – especially if this is your first notice.

If you choose to contact the IRS yourself, without any knowledge or idea of the basis for your debt or what types of payment programs you could potentially qualify for, you could unknowingly provide information to the IRS that could be used against you later in the matter.  Similar to the “Miranda warnings” given in potential criminal cases, “anything you say can be used against you” when you talk to the IRS – the only difference is, the IRS doesn’t have to give you this warning before you speak to them!

Also, be advised that, when you contact the IRS regarding that tax bill, they will push you to begin payment on that balance.  Unless you have a thorough knowledge of your income and allowable living expenses at the time of your call, it is very likely you could be placed in an inappropriate repayment program that could cost you hundreds or even thousands of dollars more than you needed to pay.  You could even be put into a program that creates an unnecessary hardship in your life.

For these reasons, as well as many more, contact with an IRS tax attorney should be your first move in any kind of a tax situation that is going to require a determination of liability, determination of the amount of debt owed, and/or negotiation of a payment plan on the tax balance.  An IRS tax attorney knows the best way to go about determining the exact nature of your tax debt, and whether there are any arguments for a reduction or elimination of that debt.  The IRS tax attorney will further be familiar with the programs available in your living situation, and can expertly guide your case into the optimum program for your needs.  Finally, the IRS tax attorney provides that much-needed “buffer” between you and the IRS, which saves you from the stress and aggravation of direct contact with the aggressive collection efforts of the IRS agents.

At Victory Tax Solutions, we have experienced tax attorneys on staff, ready to assist you with your tax matter.  With your first call, you will receive the kind of attention and professionalism that will give you the assurance and peace of mind that is important when dealing with such a stressful issue.  Please call us right away!

©2014VictoryTaxSolutions.com
Publishing Rights: You may republish this article in your web site, newsletter, or ebook, on the condition that you agree to leave the article, author’s signature, and all links completely intact.