Friday, June 24, 2011

IRS Pproblems -- What Can You Do if the IRS Garnishes You -- Levies You

The very 1st thing that you can do is contact Flat Fee Tax Service, Inc. The IRS levy relief team at Flat fee Tax Service is the nationwide tax group that will have your IRS Garnishment / IRS Wage Levy stopped and released in 1 Day / 24 Hours. 

That is the quickest way to stop the IRS from taking your paycheck, wages, Social Security or Social Security Disability (SSDI).

Or, you can attempt to "do it yourself." 

An IRS Levy

If the IRS chooses to play hardball over your back tax liability or other tax-related problem that you've made no attempt to address, your wages may be garnished. It is very important for you to be aware of your rights and to know your options if the IRS garnishes / levies your wages, your paycheck, your Social Security or Social Security Disability (SSDI), as it makes more sense to work out a solution with the IRS rather than allow the IRS to continue taking money from your paycheck.
One of the harshest (and easiest) ways for the IRS to punish you for delinquent tax returns is to garnish your wages or paycheck. It is a popular misconception that the IRS can seize only your assets - financial accounts, real estate, automobile, etc. The IRS retains the authority to take money out of each one of your paychecks until your back tax debt has been paid in full.
Here are some recommended steps to follow if the IRS has garnished your wages:
  1. File Your Delinquent Tax Returns. As a rule, the IRS will not stop a levy if there are missing tax returns. Flat Fee Tax Service has had success in stopping a levy prior to the filing of the delinquent tax returns. To do this, we would need to assure/promise the IRS that we would be responsible for getting our client to be compliant. The IRS will never agree to stop a levy with an individual taxpayer if they have unfiled/delinquent tax returns. For this reason, you need to be 100 percent sure that all of your returns have been filed and are in the possession of the IRS.

  2. Determine How Much You Owe the IRS. Just because the IRS says you owe a certain amount means that the tax debt is accurate. Finding out how much you owe the IRS can be scary but simply cannot be avoided. Before you can agree to an Installment Agreement, you need to be sure that your tax debt has been reduced to its accurate amount. Should your tax returns be amended? Can the penalties and interest be eliminated through a Penalty Abatement due to reasonable cause? Are you qualified and eligible to settle with the IRS through the Offer in Compromise program? Are you Currently not Collectible?

  3. Pay Your Back Tax Debt. Once your tax debt has been paid off, the IRS will stop garnishing your wages. That is pretty obvious. Now there are a number of different ways to pay your back taxes, including paying in full, setting up an installment agreement or submitting an offer in compromise. If you can prove yourself eligible, you may also want to consider requesting to be placed under "currently not collectible" status. If the IRS agrees with your plea, they will immediately release the levy for a time period of between 18 to 24 months. For more information on any of these subjects, you can read from our informative blogs or go to our website at:

The law mandates that the IRS send you a final notice prior to garnishing (levy) your wages, your paycheck, your commissions, your Social Security or your Social Security Disability (SSDI). If you receive a final notice from the IRS then you should act fast, because the longer you wait to take action, the greater the chance of your wages being garnished. The IRS is only required to send out the Notice. The IRS is not required to make sure that you received any Notice.

IRS wage garnishment is the legal seizure of your wages done by the federal government in order to satisfied unpaid back taxes. The IRS will normally garnish 70% or more of a taxpayers income once the wage garnishment is in effect. The IRS can garnish salaries, wages, tips, bonuses and commissions. The IRS can legally seize the majority of your assets if you have been unresponsive to their repeated demands of payment or settlement of IRS taxes owed.
With IRS wage garnishment the IRS will contact your employer and require them to withhold a certain portion of your wages and send them over to the IRS. Your employer is required to do this by law and if they don't comply with the IRS they will be made liable for the amounts that should have been collected.

The Wage Levy Process

The IRS typically follows a standard process that leads up to a wage levy. If you receive an intent to levy it should be no surprise to you since you likely received multiple letters and most likely multiple phone calls from the IRS. Once the IRS has went through their entire series of letters the last one you will receive before wage garnishment is used is the "Notice of intent to Levy". Once this notice is sent the IRS can begin collections 30 days after you receive this notice. The IRS will then look at your financial situation and decide which levy method would allow them to collect the amount owed the quickest. If you are a salaried employee it is pretty likely that they will choose to garnish your wages. In order for the IRS to begin collections they must have satisfied the following three requirements:
  1. The IRS assessed you with a tax a tax liability and demanded payment for it.

  2. You did not pay that tax amount that was assessed or you didn't not come to some other sort of agreement with the IRS.

  3. The IRS sent you a "Final Notice to Levy and Your Right to a Hearing" (CP 90, CP 91, CP 278, Letter 1058, LT 11, etc) and 30 days have passed since you received that notice
Once the IRS has met the previous three requirements they can begin the levy. If they have not met those three requirements it is possible that you could appeal the tax levy and win. Contrary to popular opinion, it is rather easy for the IRS to execute a wage garnishment / levy. The IRS will match your back tax debt with information in their computer files (Automated Collection System) and out goes the Levy order. 
There are many ways to stop or prevent wage garnishment. The IRS does has many different methods to allow taxpayers to get back onto good terms with them, no matter how bad their financial situation is. It is the responsibility of the taxpayer to know what these methods are and what is available to them. The IRS is not going to help you. The function of the IRS is to collect money.
Once the IRS serves your employer or Social Security with the Levy, it will continue until the tax debt is paid or stopped.

IRS Notice CP 90/297/297A - What They Means & What to Do

The IRS will send a CP 90/CP 297 notice to let you know of the intent to levy federal payments that are due to you. This can include a salary, Social Security benefits, or OPM retirement benefits. There are also other items that are subject to levy and can be included in a CP 90/CP 297 notice such as real estate, bank accounts, car, business assets, commissions, and wages.
The CP 297A is different than the CP 90/CP 297 as it is the notice that says a levy has been issued on such things as contractor payments if operate a business, employee travel costs, Federal reimbursements and retirement funds. The CP 297A is aimed at the self-employed.
Other/Similar Levy Notices are: CP 91, CP 1058, LT 11.

Next Steps With CP 90, CP 297 or CP 297A?

If you receive any of these notices the first thing that you should think about is paying the money that is being requested. This is the quickest way to either avoid a levy being issued, or to have this released. An envelope is enclosed as to make it easy for you to send the payment that is due.

If I Received A CP 90, CP 297 or CP 297A or Other Notice, When Should I Respond To IRS?

You should never wait to respond to an IRS CP 90/CP 297/CP 297A notice. These notices are important, and will have great impact on your life. If you cannot pay the IRS the money that they are demanding, an experienced tax professional can help limit the damage to you.

What If I Can't or Don't Want To Pay Federal Taxes Assessed or Owed?

If you cannot pay the full amount, an action plan needs to be implemented to protect your paycheck or Social Security. Those who do not make any attempt to deal with a CP 90/CP 297/CP 297A notice will face ongoing IRS problems and levies.

Who Can I Talk to To Discuss CP 90/CP 297/CP 297A?

I am Dave Rosa, the V. P. of Client Relations. I will be conducting your confidential consultation. It is my duty to you, as well as Flat Fee Tax Service, Inc., to provide you with an honest and straightforward evaluation of your IRS problem. Flat Fee Tax Service, Inc. is known nationwide as the tax relief firm that will have your IRS Wage Levy stopped and released in 1 Day/24 Hours. We do not employ salesmen. There will be no pressure. We strive to keep our costs as low as possible so that we may pass those savings on to our clients. We will be a positive benefit to our clients.

• Experienced Tax Attorneys
• Lower fees - higher value
• Integrity, credibility, personal service & results
• No Salesman - No Pressure - No Complaints

• Fixed with no hidden charges
• Payable in monthly installments
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• Always competitive and affordable

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1 comment:

  1. You can have an IRS Garnishment / IRS Wage Levy stopped and released. If you have delinquent tax returns, it will make it more difficult to release the levy but not impossible.