IRS Garnishment / IRS Levy
[Paychecks, Wages, Social Security, Disability (SSDI), Real Estate, Automobiles, Business Assets, Bank Accounts & Commissions]There are only a few requirements that must be met before the IRS Executes an IRS Bank Levy / IRS Garnishment / IRS Levy:
- The IRS must have assessed the tax debt and sent a Final Notice - Notice of Intent to Levy and Notice of your Right to a Hearing (CP 90, CP 91, Letter 1058),
- The taxpayer must have neglected or refused to pay the tax debt and,
- The IRS must have assessed the tax debt and sent a Final Notice - Notice of Intent to Levy and Notice of your Right to a Hearing.The IRS can serve the Final Notice - Notice of Intent to Levy and Notice of your Right to a Hearing in person. The IRS can leave the Notice of Intent to Levy at the taxpayer’s home or usual place of business, or send the Notice of Intent to Levy to your last known address by certified or registered mail. It is important to note that the IRS is only required to send the Final Notice - Notice of Intent to Levy to the last address known to it. The taxpayer does not need to actually receive the Notice of Intent to Levy (CP 90, CP 91, Letter 1058) for it to be effective.
Many taxpayers (you included) may never actually receive from the IRS the Notice of Intent to Levy. You may not realize that you are in danger of receiving an IRS Wage Levy / IRS Garnishment until your wages, your paycheck or Social Security are actually garnished or your Bank Account has been seized.
Your Bank will be instructed to freeze all of your funds 21 days (includes Saturday, Sundays & holidays) that are in your Bank accounts at the time of the IRS Levy. Your Bank is ordered to forward your funds to the IRS at the end of that period. Banks are obligated to follow the IRS Levy instructions. Remember, you have 21 days to get your bank account money returned .
An IRS Wage Levy / IRS Garnishment upon your paycheck, wages, commissions, your Social Security or Social Security Disability (SSDI) is considered to be a continuous IRS Garnishment /IRS Wage Levy The Levy needs to be applied only once and will be applicable to your future wages (paycheck, Social Security) until either the Levy is released by the IRS under §6343 or your back tax debt is fully paid. As your future wages (paycheck, Social Security) are earned, no additional IRS Garnishment / IRS Wage Levy action is necessary by the IRS to take a large portion from your paycheck unless steps are taken to Release the IRS Wage Levy / IRS Garnishment.
Section 6334 (c) of the Internal Revenue Code (26 U.S.C. 6334 (c)) allows Social Security Benefit and Social Security Disability (SSDI) subject to an IRS Wage Levy / IRS Garnishment for collection of your unpaid Federal Tax Debt.
If you are a Senior Citizen relying on Social Security or Social Security Disability (SSDI) for your income and you have an IRS Garnishment attached to your Social Security, the IRS is taking a portion of your very limited monthly check.
- Have the IRS Levy Stopped and Released in 1 Day/24 Hours
- Can You be Classified as Currently not Collectible?
- Can You Settle your Tax Debt through an Offer in Compromise?
Through the Federal Payment Levy Program (FPLP), Social Security or Social Security Disability (SSDI) benefit payments outlined in Title II of the Social Security Act, Federal Old-Age, Survivors, and Disability Insurance Benefits, are subject to the 15-percent IRS Levy, to pay your delinquent IRS tax debt if you do nothing.
Because the Federal Payment Levy Program (FPLP) is used to satisfy IRS tax debts, the IRS may levy your Social Security or Social Security Disability (SSDI) benefits regardless of the amount of your tax debt. This is different from the 1996 Debt Collection Improvement Act which states that the first $750.00 of monthly Social Security benefits is off limits to satisfy non-tax debts. Fifteen percent of the Social Security benefit will be levied through the Federal Payment Levy Program (FPLP) regardless of whether or not the remaining benefit sent to you is less than $750.
The IRS is not limited by IRC 6331(h) to taking 15% of your paycheck, your Social Security or your Social Security Disability (SSDI) benefits. The IRS can issue a manual levy that can continuously take ALL of your Social Security / Social Security Disability (SSDI) benefits as well as your paycheck or wages under Internal Revenue Code section 6331(a), which permits an IRS Levy on all of your wages, your salary or any other income [this would include Social Security / Social Security Disability (SSDI)]. The 15% automatic IRS Levy provision is a supplement to the manual IRS Levy power. The IRS can chose the manual approach if it deems fit and attempt to collect more than the automated 15%.
CURRENTLY not COLLECTIBLE
"Currently Uncollectable" - Also known as Currently not Collectable is a method for delaying payment (possibly eliminating payment) of your IRS Tax debt. The Flat Fee Tax Team, led by an experienced IRS Tax Attorney, will work to convince the IRS that you have no way of paying your IRS Tax debt at this time.
When you, the taxpayer, are unable to make installment payments and can prove that enforcement of an IRS Wage levy / IRS Garnishment would create significant undue economic hardship by depriving you, the taxpayer, of basic living necessities the IRS and some States will classify the account as Currently Uncollectible / Currently not Collectible and grant hardship status to suspend collection activity.
The IRS will consider you "currently not collectible" and this status will usually be for a period of 18 to 24 months. At the end of the Currently Uncollectible period, you, the taxpayer, will need to show the IRS that your economic situation has not changed. As long as you enjoy that status with the IRS, you will not be expected to pay any of the IRS tax debt. Your statutory period (IRS Statute of Limitations) does not freeze or stop. The Statute of Limitations continues to decrease as usual.
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