An IRS Garnishment (wage garnishment) is a type of IRS enforcement method used by the Internal Revenue Service where a portion of your wages or salary are deducted from each paycheck and applied towards paying off your tax debt. An IRS wage garnishment is continuous which means it will take your wages/paycheck until it is stopped and released. An IRS garnishment ends when the taxes are paid in full or another payment method such as an installment agreement is arranged. The IRS may garnish as much as 100% of your paycheck when the IRS implements a Manual Levy.
Many people find that they cannot live on the amount remaining after the garnishment is taken out, so they seek a modification. Wage Garnishment modifications can help protect income and maintain a level that makes it possible to live.
THE TAX PROFESSIONALS AND IRS PROBLEM SOLVERS AT FLAT FEE TAX RELIEF ROUTINELY STOP AN IRS GARNISHMENT IN ONE DAY.1-866-747-7435
The IRS has a broad ability to order a tax levy. A Tax levy will fall into 2 categories. The first are levies directed to the taxpayer and cover the property owned by the taxpayer, this is sometimes called a seizure. The second category is a tax levy served on third parties who hold intangible property belonging to the taxpayer, such as banks and employers.
In some cases, the IRS can seize your property. Generally in Florida, homestead laws protect your primary residence. However, it is critical that you find out your rights by speaking with an experienced and qualified tax attorney.
The IRS can serve the tax levy to your bank, your retirement plan holder, and to your life insurance company if your life insurance policy has a cash surrender value (whole life). A bank levy can also be used to remove cash from a bank account. Once the IRS places a levy order, your financial institution will be required to remove all funds available in your accounts up to the amount you owe, hold it in a separate account for 21 days and then send it to the IRS. It may be possible to obtain a release of a levy to help save you from losing your entire savings, so it is important that you seek immediate counsel from a legal or tax professional.
YOU HAVE 21 DAYS TO GET YOUR MONEY BANK. THIS 21 DAY PERIOD INCLUDES SATURDAYS, SUNDAYS AND HOLIDAYS. NEEDLESS TO SAY, YOU HAVE NO TIME TO WASTE.
Are Your Wages Being Garnished by the IRS? Our Tax professionals Can Fix That.
The tax professionals at Flat Fee Tax Relief routinely stop an IRS garnishment (wage garnishment). Our team can negotiate with the IRS to set up payment plans that both satisfy the IRS, and keep you from financial collapse . We can complete your Offer in Compromise and handle the negotiation process to reach the lowest settlement amount possible.
What is an IRS Garnishment (wage garnishment)?
When you owe money to the IRS, theenforcers at the IRS will stop at nothing to collect on that tax debt. This includes taking a sizable portion of your paycheck before it ever even reaches your hands.
An IRS garnishment or “tax garnishment” on on your wages is a type of tax levy the IRS uses to take a percentage of your paycheck directly from your employer. While limitations do exist, employers often fail to provide employees with the necessary Statement of Exemptions and Filing Status form that needs to be completed and returned to the IRS within three days. This can lead to wage garnishments of 75% or more of your paycheck.
Dealing with the IRS directly can be a very painstaking process. Individuals lack the information and resources necessary to accurately complete required documentation. The IRS isn’t in your corner. They make it incredibly challenging to reach any sort of agreement in releasing your wage garnishment.
STOP AN IRS GARNISHMENT – TAX GARNISHMENT – WAGE GARNISHMENT
If you have an ongoing tax debt and the IRS feels that you’re not paying fast enough, the agency has the option of garnishing your wages. A wage garnishment (IRS Tax Levy) is simply a legal seizure of your wages (paycheck) so that the government can satisfy the outstanding tax debt. Typically, an IRS wage garnishment is very severe and only allows you to keep a small portion of your wages.
The IRS will an order to levy to your employer, and before the wage garnishment starts you’ll be asked to complete a garnishment form. You’ll have three days to determine how many tax exemptions you’re allowed to take, and it is these exemptions that will determine how much money you get to keep for living expenses. If you don’t complete the form in time, the IRS will proceed in a manner that works for them. With every paycheck, a portion will go to you and the rest will go to the IRS.
THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE ROUTINELY HAVE AN IRS GARNISHMENT STOPPED AND RELEASED IN ONE DAY.
If you are facing wage garnishment (IRS Tax Levy), you owe it to yourself to consult with the tax professionals at Flat Fee Tax Service. When you meet with us, we’ll ask you several questions, such as:
Were your wages garnished while you were in bankruptcy?
Did the IRS send you proper notices?
Have filed all of your tax returns?
Has the Statute of Limitations on the collection expired?
Do you have a spousal defense?
These are just a few of the reasons why the IRS might choose to stop and release the wage garnishment. There are other circumstances and options available to you as well. This is why you should meet with an experienced tax professional, who has has a track record, to discuss your particular tax problem and all of the tax relief options available to you.
The most important thing to remember is that if you do not have to live with an ongoing wage garnishment (IRS tax levy). A tax garnishment doesn’t have to be as crippling as the IRS wants it to be. True, out of all your creditors, the IRS is legally allowed to take the largest portion of your wages. And, unlike other creditors, it doesn’t have to go to court to get a judgement before doing so. Working with Powell Tax Law, you can work out a tax settlement or at the very least a installment agreement with the IRS so that if you must live under wage garnishment, you can still have a life.
I am Dave Rosa. It is always my pleasure and my duty to provide everyone who calls in, to provide a comprehensive and realistic evaluation of your tax problems.
Still, the best way to deal with wage garnishment is to avoid it altogether. The tax professionals at Flat Fee Tax Service can represent you when the prospect of garnishment is still only a threat or is actually an order to levy. All the possible alternatives to wage garnishment – bank loans, collection delays, payment plans, offer in compromise (IRS settlement) – have one thing in common: they are negotiated by people who understand the system. If you’re not that person, you need professional help. Remember, the IRS has the right to take other property such as your bank account and other assets to satisfy an outstanding tax debt. Let out team of professionals represent you so you can make other arrangements.
Taxpayers who are not initially able to pay their taxes can first expect to receive some notices in the mail, along with a set of instructions explaining their rights as taxpayers. Many times, an IRS Seizure can be resolved with an installment plan using Form 9465 or going online (IRS website). However, taxpayers who owe large balances on their tax returns and refuse to communicate with the IRS will eventually face the possibility of having a tax lien or tax levy (wages – paycheck – bank account) placed on some or all of their property. Here’s how this process works and how it can be avoided.
Tax Liens – A federal tax lien is a public notice that someone owes back taxes to the IRS. It gives the IRS the authority to seize any proceeds from sales of any real estate/property by a delinquent taxpayer. The rules pertaining to tax liens are outlined in Section 6321 of the IRS Code. Tax liens prevent delinquent taxpayers from selling their property with a clean title until the IRS has been paid in full or the IRS agrees to subordinate the lien. Furthermore, the tax lien follows the property and not the taxpayer/owner, which means that anyone unlucky enough to buy the asset from the taxpayer will inherit the tax lien as well. Then the IRS has two people that it can go after for its money. Now do you see how this works?
There are two types of tax liens; one is a “silent automatic tax lien” and the other involves a notice sent from the IRS to the recorder’s office of the taxpayer’s county of residence. The latter type of lien is listed by the various credit reporting services and will have a substantial negative impact on the taxpayer’s credit score. The only way that a tax lien can be released is via payment in full, plus interest and penalties, discharging the tax debt in bankruptcy or an Offer in Compromise. If the enforcement time has expired (Statute of Limitations) for tax collection expires, then that can also release the tax lien.
Appealing and Avoiding a Tax Lien – Taxpayers can protest a tax lien with the IRS Office of Appeals. Should you decide to try this on your own, you will need to contact the manager of the unit that is filing the tax lien first. If that does not prevent the tax lien, then they must send Form 9423, the Collection Appeal Request, to the collection office. An appeals officer will decide the taxpayer’s case within five business days. However, it should be noted that these steps will seldom prevent a tax lien. Taxpayers who receive notices of liens should contact the IRS Taxpayer Advocate immediately and do their best to convince them (remember this, they are still the IRS) that posting the tax lien is not in their best interest, because it will reduce your credit score and thereby interfere with your ability to pay your tax debt by means such as a loan.
A Tax Levy (IRS Garnishment)- If the IRS is not able to recover unpaid taxes with a tax lien, then the next step is to levy the taxpayer’s assets. A tax levy is the actual seizure of taxpayer assets (wages, paycheck, bank account, rental income, etc.) by the IRS. This is the final method of enforcement of taxation when all other attempts to collect taxes have failed. Tax levy notices are usually issued to the employers and financial institutions of delinquent taxpayers.
The rules and procedures for a tax levy on an asset are outlined in Section 6330 of the Internal Revenue Code. The IRS must provide the taxpayer with a written notice of intent to levy along with an explanation of the right to appeal at least 30 days before taking action. Please note, the IRS can send the Notice of Intent to Levy and the Notice to Levy to any address that they have on file for you. If you have moved at any time, the IRS notice could have been sent to an old address. Furthermore, the IRS only has to sent the Notice to Levy once.
THE TAX PROFESSIONALS ROUTINELY HAVE A TAX LEVY
IRS SEIZURE STOPPED IN ONE DAY.
Taxpayers can try to head off this action by negotiating with the IRS and setting up a payment plan or selling off an asset. An Offer in Compromise can absolutely work here too, but more drastic measures such as bankruptcy or changing employers may also be necessary. THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE DO NOT RECOMMEND THAT A TAXPAYER QUIT THEIR JOB. IT IS TOTALLY UNNECESSARY.
There are also situations where taxpayers can gift or transfer certain assets to other family members in order to prevent them being seized by the IRS. Putting paper assets into safe deposit box with their own tax ID number can often keep them out of reach. Taxpayers can also try to show the IRS that an asset being seized has little value. But the most effective strategy when dealing with a tax levy is to convince the IRS that the IRS garnishment will directly create a financial hardship that will only make it more difficult to pay the tax.
I am Dave Rosa. For more than a decade it has been my pleasure and duty to provide taxpayers with a comprehensive tax relief consultation. Our conversation will only take 20 to 30 minutes. This will be well worth your time.
The Bottom Line – The IRS has enormous power to issue tax liens and/or a tax levy against taxpayers who refuse or neglect to pay their tax debt. Taxpayers have rights during these proceedings. There are many strategies that can be used to try to prevent or delay the IRS from seizing personal as well as business assets. For more information, give our tax professionals a call.
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:
Pay In Full – Pay off the debt completely – This is probably not an option.
File Bankruptcy – Stops the FTB from taking any further collection action
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
If you are facing and getting hit with an IRS wage garnishment, it is important to act fast so you can limit the impact the IRS will have on your financial well being. The IRS will continuously take the money from your paycheck with little regard to your other financial needs. The IRS does not care about your rent, your mortgage, your car payment or feeding your family unless they are forced to do so.
There are many methods that can be used to stop an IRS wage levy (IRS garnishment) if you have an experienced IRS tax relief professional handling your income tax problem. The method you use will be determined by your tax, financial, and work situation. The most ideal method to choose would be one that resolves your income tax problem as well as stops the IRS wage levy “in its tracks.”
STOP YOUR IRS WAGE LEVY TODAY. CALL: 1-866-747-7435
Ideally, an IRS wage garnishment (IRS levy) will be stopped in one day (often within hours) and your income tax problem will be resolved at the same time or very soon afterward. When the IRS sends their final notice of intent to levy the IRS will state that you need to pay your past due to tax debt in full or come to some other form of arrangement to prevent the levy from happening. Typically you can still do that even after the levy has taken effect. Below are some methods to pay in full or make some other form of arrangement.
Pay your income tax debt in full – IF YOU COULD DO THIS, YOU WOULDN’T BE THE TROUBLE YOUR NOW IN. Once your income tax debt has been paid in full the wage garnishment will immediately stop. Even if you can’t pay in full maybe you can borrow from family or friends (not recommended), have a garage sale and sell some assets, refinance your home, or even try to pay taxes on a credit card (also not recommended).
SO, LET’S FORGET THIS OPTION.
Enter into an Installment Agreement – An installment agreement is a PAYMENT PLAN between you and the IRS that says you will pay off your tax debt in monthly increments until everything has been completely paid off. Once you have an installment agreement accepted by the IRS, the wage garnishment/seizure will be stopped. You will remain in good standing with the IRS as long as you keep up on your monthly payments and do not default on your agreement. The IRS prefers this method to be used if taxes cannot be paid in full.
PLEASE NOTE: MOST PEOPLE DEFAULT ON THEIR IRS PAYMENT PLANS BECAUSE THE AMOUNT AGREED UPON WAS MORE THAN THE STRUGGLING TAXPAYER COULD REALLY AFFORD. WHEN YOU DEFAULT, AND, MOST LIKELY, YOU WILL, THE IRS WILL LEVY YOU AGAIN.
YOU CAN SETTLE WITH THE IRS FOR LESS.
Submit an Offer in Compromise – An offer in compromise is an IRS settlement program that allows financially struggling taxpayers to settle for less than the total amount of back tax debt that they owe. This is a very hard filing to get accepted if you do not know what you’re doing. Less than 1/2 of the IRS settlement submissions are actually accepted by the IRS. If you are considering this type of filing it is highly suggested that you do some in-depth research to see if you are actually a likely candidate.
You should consult with an experienced IRS tax attorney to get their opinion. When you file for an offer in compromise your wage levy will typically be delayed until your offer has been reviewed. It will not stop it if the IRS thinks you are using the filing as a stalling tactic though. If your offer is accepted you will be considered in good standing with the IRS and no wage levy will exist.
THE IRS TAX PROFESSIONALS AT FLAT FEE TAX SERVICE CAN TELL YOU DURING OUR INITIAL CONSULTATION IF YOU ARE QUALIFIED AND ELIGIBLE FOR AN IRS OFFER IN COMPROMISE.
Currently not Collectible – The IRS does have some guidelines as to when it is unfair to collect from a taxpayer. The only problem is they will not stop collecting until it is proved to them that it is unfair to collect from the taxpayer. If you can prove to the IRS that the garnishing and seizing of your wages, Social Security, Social Security Disability (SSDI) or Veteran’s Pension causes financial hardship the garnishment (levy) will be stopped. This is only a temporary solution and may or may not resolve income tax problem. If you get placed into Currently Not Collectible status, it is possible to run out the Statute of Limitations on the IRS collection enforcement.
The IRS will check on you every 12 to 18 months to see if your financial condition has improved so that you can make payments. If you cannot, the Currently not Collectible status will continue.
IF YOU QUALIFY FOR CURRENTLY NOT COLLECTIBLE, WE RECOMMEND THAT YOU “GO ALL THE WAY” AND DO AN OFFER IN COMPROMISE.
An IRS garnishment (levy) is very difficult to deal with and it is important that you act fast to limit the effectiveness of this collection method and get your paycheck freed. It is highly suggested that you consult with an experienced IRS tax professional when dealing with an IRS wage garnishment.