IRS Notice Of Levy Help | Flat Fee Tax Service

IRS Levy – What is a Notice of Levy?

An IRS Notice of Levy is a letter sent to taxpayers who have not paid their back taxes and have an IRS lien placed against them. The IRS is notifying the delinquent taxpayer that the agency will begin enforcing collection of the tax debt using levy actions such as wage garnishment, property seizure, and bank account seizure. A notice of levy causes many problems for taxpayers. It means that the taxpayers’ accounts and assets may be frozen by the tax lien, which may prevent the possibilities of selling them or changing ownership of the items. The taxpayer only has 30 days in which to take care of the tax debt before tax levy enforcement action is taken. Failing to pay back the full amount of your tax debt after receiving an IRS notice of levy will mean that levy enforcement will start unless the necessary steps have been taken.

It’s important to note here that an IRS levy is a legal seizure of your assets to use towards a taxpayer’s outstanding tax debt. They’re different from a tax lien, as an IRS lien is a hold on assets, while a tax levy will actually take them away from the taxpayer.

What Actions Does the IRS First Take Before a Notice of Levy is Issued?

Typically, there are procedures the IRS will follow before resorting to sending a notice of levy. They go as follows. First the IRS has assessed your account, decided that you have a certain amount owed, and then they will send you a notice that demands immediate payment. This is a tax bill the agency expects to be paid upon being received. If the taxpayer neglects to pay the amount demanded, then the IRS will send a final notice of intent to levy accompanied by a notice of your right to hearing. The IRS must also include an explanation for the issuing of the tax levy, the process in which the levy happens, and the alternatives the taxpayer has when dealing with enforcement. These documents are released thirty days prior to the tax levy being ordered, allowing the taxpayer a month to respond promptly. These ‘before’ notices will be sent via certified mail and or delivered at the address the IRS has on file. In some cases, the IRS will hand deliver the notice to the taxpayer.

IRS Wage Garnishment

When Will a Levy Be Issued?

To put it simply, when the IRS computer (ACS) has enough noncompliance information, the Automated Collection System (ACS). This means that the taxpayer has not paid their taxes nor have they taken the proper steps to make arrangements in doing so. The IRS will then take enforcement action and issue a tax levy against assets you own or that others do (for instance your wages given by your employer).

What Can a Levy Be Issued Against?

There are quite a few of things the IRS can levy once the notice has been delivered and there has been no correspondence within thirty days. In terms of what the government can legally take from a delinquent taxpayer, our tax professionals list them here:

Garnish Wages – IRS Wage Garnishment

An IRS Wage Garnishment – the IRS will demand that your employer garnish your wages and send them to the IRS to be applied to your tax debt rather than to you personally. An IRS Wage Garnishment is continuous which means unless it is stopped and released, the tax levy will go on and on until the entire tax debt is paid in full.

THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE ROUTINELY HAVE AN IRS WAGE GARNISHMENT STOPPED AND RELEASED IN ONE DAY.

Independent Contractor or Vendor Payments – 1099

The IRS has all your information. When an agent is on the case, they can reach out to third parties who owe the levied taxpayer money and demand these payments are sent to the IRS instead. The IRS will seize 100% of the the money due you.

OPM Retirement Benefits, SSA Benefits, Employee Travel Advances

The IRS also has the power to take these perks from you and use them towards the entirety of your tax debt owed. Regarding Social Security Benefits and Veteran’s Pensions, the IRS can take an automatic 15% from your check. This seizure is called The Federal Payment Levy program (FPLP). Try living on what’s left.

IRS Tax Debt Help – IRS Tax Relief

Bank Accounts – IRS Bank Levy

In the worst case scenario, the IRS can put a tax lien on your bank account and lock it from you. After forty five days, they can then demand that whatever money in your account is transferred directly to the IRS. You have 21 days to get your money released back into your account. The 21 days includes Saturdays, Sundays and holidays, so you have no time to lose. You are at a disadvantage if you try to have the IRS bank levy released on your own.

Commissions – Independent Contractors (Insurance Agents, Real Estate Agents, etc.)

Depending on the situation, if the taxpayer is going to be receiving commission from a certain project or legal endeavor, then the IRS will take action and claim the commission to help satisfy tax debt. The IRS will keep it all.

Property (Includes Rental Property)

Any piece of property that the taxpayer owns which could help satisfy their tax debt. This starts with a home and can go all the way to toy vehicles that could be used to satisfy tax debt. Any piece of property that the taxpayer owns which the IRS considers valuable, they can levy and use towards the outstanding amount owed. If you own rentals, the IRS can seize the tenants payments.

Anything of Value

Truthfully, when the IRS has decided to take enforcement action, it’s possible that they can levy anything the taxpayer owns and use it towards the tax debt. Even possessions or holdings that are not considered assets to the taxpayer could be levied and used to resolve the amount owed.

What to Do Once You Receive the Intent to Levy Notice?

To state it simply, the obvious way to avoid having your assets taken and penalties added to your account is to pay off the debt owed. This will resolve matters with the IRS and dismiss the investigation issued for your account. However, if the taxpayer cannot pay the amount owed, then there are alternative programs which they might be eligible for. These are payment programs tailored towards taxpayers that are not in the financial situation to pay off their debts. The two main alternatives being an installment agreement and an offer in compromise.

Installment Agreement

This is basically a payment plan similar to the way one would pay off a loan. Depending on what is agreed between the taxpayer and the IRS, the taxpayer will then be put on a monthly installment plan and pay off their debt in increments. These terms usually last anywhere from 3-6 years. Again, depending on what is agreed, it is possible that through this payment plan the taxpayer will end up paying a larger amount in interest.

Offer in Compromise – Tax Settlement

Offer in Compromise

An Offer in Compromise is a tax settlement between the IRS and the taxpayer for an amount drastically less than the tax debt. Due to the IRS not wanting to implement a forgiveness policy for all those who cannot pay their taxes, eligibility for this plan is limited to those who lack the ability to pay after deducting their allowable expenses. The taxpayer needs to meet very specific criterion and must prove to the IRS that there is no possibility that they could pay the tax owed. The IRS, usually coordinating with a tax professional representing the delinquent taxpayer, will come to an agreement on how much is owed and will settle with one lump sum payment.

FLAT FEE TAX SERVICE HAS A 95% OFFER IN COMPROMISE SUCCESS RATE.

The Different Types of IRS Levy Notices.

The short is answer is no. There are different notices for different types of situations. For instance, a CP297 and CP90 act as notifications to taxpayers that they have an outstanding balance the IRS has tried to collect, and because they’ve been noncompliant the IRS will now take action against them. This action being that they will levy their assets, bank accounts, wages, and more. However, a CP523 is sent to those who entered an installment agreement but did not fulfill the terms. This type of notice will explain why the account defaulted, the conditions of the levy, and the options thereafter to avoid having assets seized.

An L-1058 and L-T11 usually succeeds the final notice balance due letter. This type of levy notice states that a taxpayer has an overdue balance and they have failed to address or resolve the account with the IRS. Due to this negligence and the notices that were sent prior, the IRS will issue a levy on the taxpayer’s assets after a thirty day period.

Then a CP91 and CP298 are notices sent to taxpayers who still owe money to the IRS despite the letters sent warning them of a 15% levy that is going to be placed against their social security benefits (FPLP). These notices typically arrive after a CP297 or CP90.

As you can see, there are multiple different types of levy notices. It’s important that if a taxpayer received a notice, they do the proper research in understanding what sort of notice they have received. Being that levy notices are indicative of a serious tax problem, it’s recommended the taxpayer seeks professional help in formulating a plan of action to ensure their assets are not seized.

I am Dave Rosa. It is my duty, my responsibility, and my pleasure to provide you with a thorough evaluation of your tax problem. Our conversation will take 20 to 30 minutes. By time we complete our consultation, you will know what your tax relief options are and what you can expect to by our tax professionals.

CALL 1-866-747-7435

FLAT FEE TAX SERVICE – GOOD PEOPLE – DOING GREAT WORK

https://www.flatfeetaxservice.net

http://www.flatfeetaxservice.us

https://affordable-irs-tax-help.business.site

IRS Wage and Bank Levy in San Diego | Flat Fee Tax Service

SAN DIEGO WAGE AND BANK LEVY TAX RELIEF

What to Know About Tax Levies and Garnishment in San Diego

If you owe back taxes to the IRS or Franchise Tax Board (FTB), your income,your wages and assets (bank account), including real and personal property, can be pursued by the taxing authorities as a means of collecting the tax liability.

Tax Settlement – Offer in Compromise

FLAT FEE TAX SERVICE CAN HAVE YOUR WAGE AND BANK LEVY

STOPPED IN ONE DAY.

AFTER THE WAGE AND BANK LEVY HAVE BEEN RELEASED,

LET’S PUT TOGETHER YOUR TAX SETTLEMENT.

What is a Bank Levy and Wage Garnishment?

The IRS has the authority to collect unpaid taxes by issuing a wage garnishment to your employer or a bank levy to one or more of a taxpayer’s bank accounts. The tax levy can attach to money within a savings account, checking account, retirement account, and other accounts, such as brokerage accounts. The IRS or state taxing authority may also issue a tax levy notice to your employer, resulting in an ongoing wage garnishment until the levy is either satisfied or released. Wage levies and bank levies are legal orders that recipients must comply with.

This can easily happen: the IRS is levying my bank account and issued a wage garnishment to my employer. What can I do?

Most bank and wage levy actions are taken by the Internal Revenue Service in an effort to grab the attention of the debtor taxpayer. If you receive a wage garnishment on your income or a tax levy at your financial institution, be sure to contact an experienced tax professional to prevent further enforcement actions.

I am Dave Rosa. It is my duty, my responsibility as well as my pleasure to provide you with a thorough and complete consultation. Our conversation will take 20 to 30 minutes.

If you have a tax levy and/or wage garnishment in the San Diego, California area, give our team of tax professionals. Flat Fee Tax Service routinely has bank levy and wage garnishment stopped and released in as little as one day.

FLAT FEE TAX SERVICE – 1-866-747-7435

GOOD PEOPLE – DOING GREAT WORK

https://www.flatfeetaxservice.net

http://www.flatfeetaxservice.us

CA FTB Tax Debt Forgiveness | California State Tax Debt | Flat Fee Tax Service

Are you experiencing tax debt problems with the IRS? If you are, often tax debts are also owed to the state of your residence. California is one such State that collects taxes from its residents on top of what they owe to the IRS. It’s also possible to have tax debt with the California Franchise Tax Board in the absence of any debt to the IRS. Just like the IRS, owing taxes to the CA FTB is a serious matter. It’s more than helpful to know your options if you’re a taxpayer that falls into this category. Those that owe more than $10,000 should consider contacting one of our Tax Attorneys. You may benefit from a CA FTB tax debt forgiveness program. Take a look at your options below.

Options In CA FTB Tax Debt Forgiveness

California Collects Taxes Through The Franchise Tax Board (FTB)

As per current 2018 California tax law, residents that owe taxes to the FTB have 5 different options for dealing with a tax debt. Understand that not every tax relief option offers CA FTB tax debt forgiveness, but they do provide a means of settling your tax debt.

  1. Offer In Compromise.
  2. Installment Agreement with Penalty Abatement if possible.
  3. Hardship Status.
  4. Pay the tax debt in full with Penalty Abatement if possible.
  5. Do nothing and see what happens with collections.

Leaving all the decisions to the CA FTB and their collection pursuits is rarely, if ever, your best option. Like the IRS, the CA FTB has the power to issue tax liens that may result in property seizure as covered in the California Taxpayer’s Bill of Rights.  The CA FTB will also garnish your paycheck and levy your bank account. Follow as we describe the other options in more detail.

JUST SO YOU KNOW, THE FRANCHISE TAX BOARD

IS OFTEN MORE DIFFICULT THAN THE IRS.

CA FTB Tax Debt Forgiveness – Offer In Compromise

An Offer In Compromise is the best option for FTB tax debt forgiveness. A CA FTB Offer In Compromise is an agreement between you and the CA FTB to settle the tax debt for less than the amount owed. Like the IRS, the CA FTB may accept an Offer in Compromise (OIC) if they believe it is the most they will be able to collect. You can consider it CA FTB tax debt forgiveness if your offer is accepted. They are more likely to accept an Offer In Compromise if you are older than if you are younger. We had one client who owed over $200,000 in CA FTB debt have his Offer accepted for $500. The CA FTB is going to look at your income, expenses, assets, and potential future income in their determination. If you owe more than $20,000 to the FTB it is strongly recommended to hire a tax professional to handle it for you.

PLEASE NOTE: THE CALIFORNIA FRANCHISE TAX BOARD HAS

20 YEARS TO COLLECT A TAX DEBT.

CA FTB Installment Agreements

The California Franchise Tax Board (FTB) does make Installment Agreements available to residents that owe back taxes. It’s not a form of tax forgiveness because you end up paying the full amount with interest and penalties combined.  Installment Agreement requests done online are typically accepted as long as the amount owed is less than $25,000. In the online Installment Agreement request form, there is a financial disclosure section and taxpayers may propose a monthly payment amount.

Note that it is possible to make a request for a Penalty Abatement from the Franchise Tax Board. This is a form of CA FTB tax debt forgiveness, though you will have to provide good cause as to your inability to file and pay on time.

Can You File For Hardship With The CA FTB? Currently not Collectible

The CA FTB Provides A Financial Disclosure Statement On The Installment Agreement Application

The CA FTB collections department will place your account into a hardship status if you qualify. You have to prove you cannot or can barely cover your basic living expenses based on reasonable expenses. The FTB will look at your expenses and determine if they are reasonable. If so and you are barely making it at the end of the month or in the red, your account can be placed into hardship status. The information is given by providing Form FTB 3561 and the supporting documents listed at the end of it.

The CA FTB hardship (Currently not Collectible) expires one year after the date of its approval in most cases. You can resubmit before the expiration of the hardship. The FTB has 20 years to collect on a debt in most cases. Time is ticking while in hardship, but it is a long way to expire. Most people qualified for hardship have a good chance at Offer In Compromise. Talk to a tax attorney to get an accurate assessment. We provide a free consultation. Call 1-866-747-7435.

BOTTOM LINE – Offer In Compromise Is The Best Form of CA FTB Tax Debt Forgiveness

Offer In Compromise is the way to go if you qualify. The other options are there if you do not. If you don’t care to deal with the FTB alone or owe more than $10,000 in tax debt, contact one of our expert Tax Attorneys. We can’t promise CA FTB tax debt forgiveness, but we can promise that we will negotiate to secure for you the best deal legally possible.

FLAT FEE TAX SERVICE – 1-866-747-7435

GOOD PEOPLE – DOING GREAT WORK

BBB ACCREDITED – A PLUS RATING

https://www.flatfeetaxservice.net

http://www.flatfeetaxservice.us

https://affordable-irs-tax-help.business.site

California State Bank Levy | Tax Garnishment | Flat Fee Tax Service

California Franchise Tax Board (FTB) Bank Levy – How To Release And Resolve

The State of California is broke. Everyone knows this fact. The California Franchise Tax Board is very aggressive and very tough to negotiate with. We do not recommend you “go it alone.”

A California Franchise Tax Board bank levy (also wage levy) is a legal action by the State of California where funds are taken from a bank account (also your paycheck) of a tax debtor for back due tax debts. This state tax levy is called an “Order To Withhold,” FTB bank levies are difficult to release and in most situations a release is not possible especially if you are attempting to do so on your own.. If you have received a bank levy or wage levy, you should still proceed immediately on resolving your case as other collection action may be in the works.

When Is A California Franchise Tax Board Bank Levy Issued?

Tax Levies are issued to bank accounts after a final notice to the taxpayer is sent requesting them to resolve the balance and no contact or arrangements are made. Time beyond what is stated in the letter can be granted if you or your tax attorney call in to resolve the case. Doing nothing almost always eventually results in a levy on any bank account at a bank for which you have received a 1099. Often a California Franchise Tax Board lien has gets filed if it already is not on file.

Take immediate action on the debt on your own or hire a tax attorney to get things going. Otherwise you risk a FTB bank levy or wage levy. The best way to take action is to resolve the tax debt, which prevents the tax levy from happening in the first place.

Stopping A California FTB Bank Levy Before It Starts

A California Franchise Tax Board (FTB) bank levy is stopped when your case is resolved or pending resolution. Collection action is not stopped by filing an Offer In Compromise in all cases, but it is in most.

The four most common ways to resolve a balance with the FTB are:

An FTB Offer in Compromise is considered the best form of California tax forgiveness, but not everyone will qualify. A California Franchise Tax Board (FTB) bank levy or wage levy will not be issued if any of the other options is in place.

California Franchise Tax Board Levied My Bank Account! What Do I Do?

Release the Tax Levy, If Possible

Releasing the tax levy is very difficult. The majority of cases result in seizure of funds. The FTB issues an Order to Withhold. The bank holds funds for 10 days before being transferred over to the FTB. An extension on the FTB taking the money  can be issued by an FTB agent if you contact them and are dealing with them to try and get it released. The same holds true if your wages are levied.

There are three main ways to release a California Franchise Tax Board bank levy:

  • Prove a financial hardship (Currently not Collectible)
  • Show that the money belonged to someone else
  • Show that the tax levy took funds that are exempt from the tax levy
  • Prove another extraordinary circumstance

Proving Financial Hardship for A

FTB Bank Levy Release

Releasing an FTB bank levy by financial hardship is tough. Being elderly helps in this type of argument for a California Franchise Tax Board bank levy release as well. Eviction notices can help build your case as well. Financial hardship is tough to prove on your own. Even though you may qualify for a 12 month hardship on your case, this does not mean you are in hardship enough for them to release your bank levy every time. Do not wait until you get a better job or have more money to contact the FTB. You could get levied in the process.

The Money Is Not Mine! Release My Bank Levy!

A tax attorney holding money in trust for clients would get a release. Your grandma accidentally deposited her money into your bank. Prove it and that would get a release usually. In order to get this kind of FTB bank levy release you need good proof in the form of documentation. An explanation by itself is not going to work.

Exempt Funds From California Franchise Tax Board Bank Levies

Social Security income and veterans’ benefits are exempt from FTB levies.The funds can be released if they are levied by you or your tax attorney contacting the FTB. Other forms of public assistance are usually exempt as well. This is the easiest type of FTB bank levy release to get.

Other Extraordinary Circumstances for FTB Bank Levy Release

FTB bank levies can be released, but you must prove an extraordinary circumstance that makes sense to the FTB agent handling the case. Don’t count on the FTB agent accepting anything here.

The First Levy Won’t Be The Last If You Do Nothing

Get to resolving your case or hire a tax attorney to handle it for you once you receive a California Franchise Tax Board bank levy. Receiving the levy is a sign that your case is deep in collections. Do not plan on getting the levy funds back, but it might be possible. If you do it is a bonus.

FLAT FEE TAX SERVICE – TAX ATTORNEY – 1-866-747-7435

STOP A TAX LEVY

https://www.flatfeetaxservice.net

http://www.flatfeetaxservice.us