11 Tips To Avoid An IRS Tax Levy | Flat Fee Tax Relief | Florida

11 Tips To Avoid An IRS Tax Levy

The Treasury Department of the United States has a well-earned reputation for being serious about collecting tax debt. The mere mention of its enforcement arm – the IRS, is sufficient to invoke anxiety and fear into the most honest of taxpayers. One reason for the trepidation generated by the IRS is that it has a potent arsenal of weapons at its disposal to pursue taxpayers who are in arrears, including tax liens and a tax levy.

Many people confuse tax liens and tax levies. While neither is desirable, a tax lien poses much less financial danger to taxpayers than a tax levy does. A tax lien represents an initial attempt by the IRS to collect revenues from taxpayers who have failed to either pay their taxes in full or to contact the agency to discuss viable repayment options. By contrast, by the time the IRS gets around to filing a Final Notice of Intent to Levy and Notice of Your Right to A Hearing, otherwise known as a tax levy, taxpayers are in imminent danger of losing valuable assets such as cars or homes to seizure.

Avoiding the dire consequences of a tax levy should be your focus. Fortunately, taxpayers who take expedient measures can frequently avoid enforcement by the IRS tax levy. Depending on the personal circumstances involved, it may be possible to dodge a tax levy long enough to contact the IRS with alternative arrangements – or even long term.

1. YOU CAN Request a 120-Day Extension

One of the few absolutely guaranteed ways to avoid a tax levy is to repay what you owe to the IRS in full. If you are here reading our material,paying the IRS in a lump sum is probably an option. Now, if you have a reasonable expectation of being able to repay your tax arrears within 120 daysrequest an extension from the IRS. Once you have made payment, the lien should be released within 30 days, which will automatically cancel the tax levy.

2. Negotiate an Installment Agreement

The IRS can less flexible about allowing taxpayers to extend payments over time when taxpayers try to negotiate their way through an IRS problem. In recent years, the IRS has changed its stance and actively encourages collaboration between agents and taxpayers. So, if you can pay what you owe within a reasonable time frame, generally six years or less, depending on your total balance in arrears, you may be able to avoid a tax levy by negotiating an installment agreement. If so, you need to act quickly to prevent the actual tax levy from going through.

3. SUBMIT an Offer in Compromise

An Offer in Compromise is a formal tax settlement that allows taxpayers to settle their tax debt by paying less than the full amount due. The Offer in Compromise process requires taxpayers to demonstrate that attempts to collect the full amount owed would present an undue financial burden or would otherwise be untenable. As might be expected, the standard for qualifying for an Offer in Compromise are strict, and taxpayers would be well advised to seek an experienced tax professional before pursuing this tax relief option.

IRS Settlement – Offer in Compromise Success

4. Demonstrate Non-collectible Status

If paying your back taxes – or the execution of a tax levy – would create severe financial hardship, you can seek what the IRS categorizes as Currently not Collectible (“non-collectible status).” Once your tax debt has been designated as non-collectible (Currently not Collectible), all attempts to collect a tax levy cease. The tax lien will remains on your record, and you must re-apply for “noncollectable status” 12 to 18 months. Please note that the Statute of Limitations will continue to run out on the collection time available to the IRS. So it is very possible that your tax debt will simply “vanish.”

5. File Chapter 7 or 13 Bankruptcy

Under most circumstances, filing either Chapter 7 or Chapter 13 bankruptcy places an immediate halt on all creditor collection actions, including tax levies. But filing a bankruptcy petition only stops a tax levy for as long as the petition is active. And especially if you file Chapter 7 bankruptcy, you may be required to relinquish personal assets anyway to obtain a discharge. We aren’t Bankruptcy Attorneys so we aren’t going to give you advice. What we can tell you is this, should any of your tax debt not be discharged with a bankruptcy, the IRS will come after you 30 days following a dismissal or discharge.

6. Petition for Innocent Spouse Relief

If you filed a joint tax return with your spouse, you are generally jointly liable for any and all tax obligations. But under limited circumstances, it may be possible to escape a tax levy if you can demonstrate that your spouse is individually responsible for being in arrears with the IRS. Qualifying for Innocent Spouse relief is extremely tough, with strict requirements in place. Many tax professionals don’t even like doing an Innocent Spouse petition because the outcome will probably be “less than desired.” If you believe you qualify, you would be well advised to seek the services of an experienced tax professional in preparing your petition. Our team at Flat Fee Tax Relief has found through the years that most people have a better chance to settle their debt through an Offer in Compromise.

7. Appeal the Notice of Levy

If you legitimately believe that the IRS has mistakenly imposed a tax levy against you, it is imperative to contact the agency by phone immediately to request an appeal. You must also follow up the phone call with a written petition to appeal the tax levy. It is your legal right to appeal a tax levy, and doing so will stop the process while your appeal is being processed.

8. Allow the Statute of Limitations to Run

The IRS is limited by statute on the amount of time that a tax lien is allowed to stand. The Statute of Limitations is usually 10 years from the date of assessment. If the statute of limitations expires before the IRS imposes a tax levy, you are officially off the hook. But this is a very risky strategy, especially since the IRS may simply impose a new tax lien against your account. It is possible to play a “cat and mouse game” with the IRS but do not try this strategy on your own. On the other hand, if you can demonstrate that the statute of limitations has ALREADY expired, your odds of escaping a tax levy improve significantly. Do not attempt this approach without expert legal advice.

9. Claim IRS Procedural Error

This is a possibility but in all sincerity, saying a “Hail Mary” would be better than doing this. In most cases, taxpayers receive multiple warnings before the IRS executes a tax levy. But sometimes mistakes are made. If you can demonstrate that you did not receive sufficient notice of a tax levy, or that the IRS committed some other procedural error in assessing your account, you can request a Collection Due Process hearing, which will halt a tax levy for 30 days after the date of the hearing. The only thing the IRS must prove is that their Notices were sent. The IRS is under no obligation to ensure that you receive the notices.

10. File a Request through the Collection Appeals Program

If you are not satisfied by the results of an appeal or a Collection Due Process hearing, you may file a petition for under the Collection Appeals Program before a tax levy has been executed. You may also file a petition to recover assets such as bank accounts or wages that were wrongfully seized by tax liens under the Collection Appeals Program. But if seized assets such as a home or a car have already been sold, you are pretty much out of luck.

11. CALL FLAT FEE TAX RELIEF TO STOP AN IRS TAX LEVY IN ONE DAY.

Flat Fee Tax Relief has been providing this very valuable TAX LEVY RELEASE service for more than a decade. Our tax professionals and IRS problem solvers were the very first tax relief company to offer this. When our competitors saw how successful we have been, they followed. Flat Fee Tax Relief has always been the Leader in both tax levy release and with tax settlements through the Offer in Compromise program.

FLAT FEE TAX RELIEF – FLAT FEE TAX SERVICE
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IRS Bank Levy Help | IRS Levy Info | Flat Fee Tax Relief | Florida

How to Reverse an IRS Bank Levy

Emergency Bank Levy Information:

If are facing an IRS or state bank levy, our experienced team will create distance between you and the taxing authorities. We buy our clients much needed time and reasonable solutions.

Bank Levies 101 – IRS Bank Levy

A tax levy ordered by the IRS is an enforced collection, where money is taken out of your bank account. An IRS bank levy or wage garnishment will happen if you do not pay your tax debt or make arrangements to settle your tax liability. The following are seizure actions available to both the IRS and state:

  • Seizure and sale of property that you hold (such as your car, boat, or house), or
  • tax levy on property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, rental income, accounts receivables, the cash value of your life insurance, or commissions).

The government usually levies only when the following three conditions have occurred:The government assessed the tax and sent you a Final Notice – Balance Due

You neglected or refused to pay the tax, and

The government sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the tax levy. The government usually sends this final notice to your last known address by certified mail, return receipt requested, but they may give this notice to you in person, or leave it at your home or your usual place of business.

Important Note: If the government (IRS) doesn’t have your current address because you have not notified them directly of an address change, you may not get the notice. If they send a notice to an old address, it is still considered sent and the agency can proceed with asset seizure. (We see this happen to our clients over and over again)

If an IRS levy is placed on your bank account, the tax levy attaches funds that have cleared and are available for withdrawal, up to the amount of the levy. The bank must wait, however, until 21 days after a levy is received before sending the money to the government.  The holding period allows you time to resolve any dispute about account ownership or get professional advice on your situation.  After 21 days, the bank must send the money, plus, if applicable, any interest earned on that amount.

AS YOU CAN READ, YOU DO NOT HAVE ANY TIME TO WASTE.

IRS Tax Levy – Bank Levy

IRS (CP501-504 letters) Levy Final Notice

If you have received bank levy, threat of bank levy or an IRS CP 504, it’s a very serious matter because you are about to have your assets and/or money taken by force, often over night.

What does a CP letter mean?

The CP notice is telling you that the IRS intends to enforce collections. The IRS can and will seize (levy) your state tax refund, and other property or your rights to property, including:

  • Wages, real estate commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets (including your car and home)
  • Social Security benefits (Automatic 15% Levy – Federal Payment Levy Program )

Call 1-866-747-7435 today for a free evaluation

I am Dave Rosa. It is my pleasure and duty to provide you with a thorough evaluation of your tax problem. our conversation will take up 20 to 30 minutes of your time. This will be well worth your time.

OUR TEAM OF TAX PROFESSIONALS ROUTINELY HAVE AN IRS TAX LEVY STOPPED AND RELEASED IN ONE DAY.

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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.

IRS Tax Debt Help

The tax professionals at Flat Fee Tax Service provide valuable IRS Tax Debt Help at a very affordable fee. Our teams are located in San Diego, CA and Clearwater, FL. It is our 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.

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