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.
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 days, request 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.
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.
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.
What Is the IRS Debt Forgiveness Program? IRS Debt Help?
Even the IRS understands “stuff happens” happens. That’s why the agency offers IRS debt forgiveness (IRS debt help) when you can’t afford to pay your tax debt.
Remember this, the IRS has 2 goals: collect money and close cases. Under certain circumstances, taxpayers can have their tax debt dramatically or partially forgiven. When the IRS considers forgiving your tax liability, they look at your present financial condition first. This means the IRS can’t collect more than you can reasonably pay. If any collection action would force you into a financial crisis where you lose all sense of financial security, the IRS can’t collect your tax debt.
There are many different ways to find out how much you owe, including checking online through the IRS’s new portal, calling the IRS, mailing the IRS a form, or having a tax professional do the research for you. The advantage to having an tax professional look into your IRS problem is this: the IRS won’t be asking you questions which you would be obligated to answer. No matter how you figure out how much you owe in back taxes, you’ll need to know before seeking forgiveness.
The IRS has many many rules. How much you owe is among the different rules that they have. It is important to know how much the tax debt is in order to to attack the IRS problem.
Be on the Lookout for IRS Collection Actions
If you can’t pay but you haven’t reached out to the IRS for forgiveness or assistance, you should still expect them to begin taking collection actions against you. These actions can range from seemingly benign, like loads of notices in the mail, to very aggressive, like private debt collection agencies getting involved and tracking you down. You could also find that your passport is at risk due to tax debt.
Some of the IRS’s often-used collection actions include:
Tax Lien – Federal Tax Lien – A tax lien is an IRS claim against your property, which will secure their interest in your assets if you fail to pay your tax debt. It’s kind of like “an insurance policy.” It is what we call a “passive collection.” Unlike a tax levy, a lien doesn’t mean your property will be taken immediately. However, you’ll still need to address the tax lien. Not only can a tax lien keep you from selling your property, but it can also snowball into a more aggressive action in the future. Once again, depending on how much the tax debt is, tax liens are regulated by the tax debt owed.
Tax Levy – IRS Garnishment – Bank Levy – Wage Garnishment
A tax levy is the agency authority to legally seizure of your property to satisfy your outstanding unpaid tax debt. You should have been sent a notice of levy from the IRS, which will let you know that they are planning to pursue levying actions against you.
A tax levy can be placed on personal property like your home, car, or boat. They can also be placed on your assets, like your bank funds, tax refunds, and wages.
A Wage garnishment is a type of tax levy in which the IRS will take part of your income in order to settle your existing tax debt. The IRS will order your employer and will continue garnishing your wages until your tax debt is paid or other arrangements are made to pay your tax debt.
Pay Less Than You Owe with Offer in Compromise
After paying your “allowable expenses” (everyday expenses), if it can be shown that you cannot pay the entire tax debt, you should apply for the IRS government payment plan called an Offer in Compromise (OIC) to settle your tax debt. Depending on your financial capacity and upon acceptance, the IRS significantly reduces the total debt that you can pay. This reduced amount can be paid in a lump sum or in fixed monthly payments.
The tax professionals at Flat fee Tax Relief, have a 96% Offer in Compromise approval rate. Our team members know how to shepherd a successful Offer in Compromise submission. The IRS considers your ability to pay, income, expenses, and asset equity when determining your eligibility for an OIC. While it can be a life-changing tax resolution for many people, the IRS doesn’t give an Offer in Compromise easily.
See If You Qualify for the IRS Fresh Start Initiative
The IRS has doubled the dollar threshold for taxpayers eligible for Installment Agreements, which will help more people qualify.
I am Dave Rosa. It is my duty and pleasure to provide you with a comprehensive consultation. Not to “toot my own horn” but I have been doing this for a very long time. After 20 to 30 minutes on the phone, we will know if an Offer in Compromise is the right thing to do for you. If it is great, if it isn’t we will look for another way to provide you with IRS tax debt help and reduce your tax debt.
Not filing your taxes could happen for a myriad of reasons or excuses. The most important first step is to get up to date and file your back returns. You must be compliant which means the last six (6) years of tax returns are properly filed. The tax professionals at Flat Fee Tax Relief will work with the IRS on your behalf to resolve any past issues, file your back taxes and do all we can to minimize your back tax debt and any penalties associated with your failure to file your tax returns.
Should the IRS create a tax debt via a Substitute for Return (SFR), the IRS will have the authority to enforce collection on an inflated tax debt. That means you will face a tax garnishment (wages, paycheck) and an IRS levy on bank accounts. To stop a tax garnishment and an IRS levy, you will have to, drum roll, FILE YOUR TAX RETURNS.
The IRS will not allow you to use other tax debt relief options like an Offer in Compromise or Installment Agreement until your back taxes are filed. You can’t even get yourself into an Installment Agreement if you have unfiled tax returns. Once the back tax returns are prepared and filed, our tax professionals can work with the IRS to arrange alternate settlement methods if you are unable to pay the balance due.
A Tax Levy – IRS Garnishment – Wage Garnishment is one of the seizure methods the IRS will use to collect a tax debt. If the agency sends a tax levy order to your employer the IRS will demand that your employer send major portion of your wages to the IRS to cover your tax debt. If your wages have been levied and garnished, contact our Los Angeles IRS specialists immediately. Our tax professionals routinely have an IRS garnishment stopped and released in one day. Our team will contact the IRS immediately to work out an arrangement to settle your debt and have the wage garnishment removed.
Offer in Compromise – Tax Settlement – Los Angeles, California
Offer in Compromise– Not everyone will qualify for an Offer in Compromise (OIC), but many taxpayers will. Many more than you may think. An Offer in Compromise is a settlement agreement between a taxpayer and the IRS, that will greatly reduce a tax debt. We are experienced tax professionals who have experience negotiating Offers in Compromise with the IRS. Contact us today so we can determine if your situation qualifies for this special program. Our tax professionals have a 96% Offer in Compromise approval rate.
Installment agreement– When a taxpayer cannot afford to pay their tax debt immediately, we can help you negotiate an Installment Agreement with the IRS that is the lowest amount possible. This type of payment plan option is good for those who cannot afford a lump sum payment to cover their tax debt.
Currently Not Collectible– When your account is placed into a Currently Not Collectible status, that means that your account is removed from the IRS’ active collection status. Everyone in Currently not Collectible status will not make payments on their tax debt. Furthermore, the time available to the IRS continues to run out (Statute of Limitations). There are very strict guidelines for people who qualify for this status. Contact us today so we can help you determine if you qualify.
Penalty and Interest– We are experienced at representing clients before the IRS to negotiate lower penalties or interest payments on back taxes. Sometimes it is possible to have the penalties and interest completely removed, depending on the situation.
I am Dave Rosa. it is always my pleasure and my duty to provide you with a comprehensive evaluation of your tax problem. It is a free consultation. Our conversation will only take 20 or 30 minutes. It will be well worth your time as you become very well informed as to your tax relief options.
Innocent Spouse | Injured Spouse | IRS TAX DEBT HELP
IRS Tax Relief by Separation of Liability – Equitable Relief – Innocent Spouse
An Innocent Spouse (IRS innocent spouse) is simply someone whose tax refund is used to cover the past-due debts of a spouse or ex-spouse. If you filed a joint tax return, you are jointly and individually responsible for the tax debt and any interest and penalty due on the joint return. The IRS does not care about any divorce decree. As far as the agency is concerned “it’s between you and your ex.” This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on a previously filed joint return. If you believe, that only your spouse or former spouse should be held responsible for all or part of the tax, then you can file a request for Innocent Spouse Relief.
GETTING THE IRS TO AGREE TO INNOCENT SPOUSE STATUS IS NOT EASY. IT MAY BE EASIER TO GET RECEIVE AN OFFER IN COMPROMISE. SO, IT IS VERY VERY DIFFICULT TO GET THE INNOCENT SPOUSE DECLARATION ON YOUR OWN.
By requesting innocent spouse relief from the IRS, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. In some cases, if the request has been accepted, a spouse may be relieved of the tax, interest, and penalties on a joint tax return. You must meet with the required conditions to be qualified for a request for Innocent Spouse status. If you live in community property State, then the requirements and qualification will also depend on the community property state laws.
After the agency receives and investigates your Request for Innocent Spouse Relief, the IRS will determine by taking into consideration of all information and your circumstances to evaluate which type of relief you will be qualified:
Three Types of Innocent Spouse Relief:
Innocent Spouse Relief
Relief by Separation of Liability
Equitable Tax Relief
I am Dave Rosa. It is my pleasure and duty to provide everyone who calls with a thorough evaluation of their tax problem. Our consultation will take 20 to 30 minutes to complete. By the time we finish, you will have a complete understanding of your tax relief options and what you cn expect. Our phone time with you will be well worth it.
An Offer in Compromise is an IRS tax Settlement: The good, the bad, and the ugly.
There are many positives and negatives to deciding whether an Offer in Compromise is the right next-step in resolving your IRS debt.
One thing is for sure: An Offer in Compromise (a/k/a OIC) is not a one-size-fits-all affair. There are many factors to think about before attempting to settle with the IRS.
A successful tax settlement can put a smile on your face and have you jumping for joy (the IRS said yes and your tax debts are over!).
Or, like “all things IRS” the IRS, an Offer in Compromise (OIC) can leave you a little frustrated as it requires an understanding of how to navigate though the IRS settlement guidelines that often have no fairness or reason.
What you want, though, is to know what to expect, and to make a fully informed decision about whether the IRS compromise process is right for you.
Here, then, are the good, the bad, and the ugly of an Offer in Compromise:
An OIC can be as advertised – a fresh start from your IRS debt.
No more looking over your shoulder with fear of an IRS seizure of your wages or bank accounts.
Improved credit score – after an offer in compromise is complete, the IRS will release all tax liens filed against you.
IRS collections are put on hold while the Offer in Compromise is investigated. After acceptance, you will have peace from IRS certified mail letters, visits from IRS Revenue Officers and wondering what’s around the corner.
You have put the IRS behind you and can buy a house, a car, and save for retirement.
The Bador not so good:
The IRS will do a comprehensive investigation of your finances before settling, requiring completion of their Form 433A or 433B to disclose your income, expenses and assets.
You will have to tell the IRS where you work and bank, and list your assets, including your house, cars, valuables and retirement accounts.
Verification will be required, including an IRS review of your paystubs, tax returns, bank statements, business profit and loss, and proof of payment of your monthly bills.
While an Offer in Compromise is being reviewed, the IRS timeline to collect from you (10 years), stops running. In that regard, it can be a bad idea to try to settle when only a few years remaining for the IRS to collect.
After acceptance, the IRS will put you on a five year probation, requiring full compliance in filing and payment of all taxes. Not performing to IRS expectations going forward will default the settlement.
The Ugly (Not all that ugly)
An Offer in Compromise is not a quick fix – a settlement offer can take the IRS a minimum of 9-12 months to investigate, with another 6 months if appeal is needed; the IRS then allows 5-24 months to pay the tax settlement.
The IRS has guidelines that can impose their will over yours on budgeting matters. Making credit card payments, or have a high monthly mortgage or car loan? Forget it, the IRS may want that money in their settlement calculations.
If the IRS determines they can collect the amount you owe, your settlement offer will be turned down (with appeal rights).
The IRS does not have an open door policy on offers. It is not a handshake deal – the settlement amount is not based on fairness but collectibility of the debt.
The IRS most recently rejected 60% of the offers it received, consisting of 41,000 rejections out of 68,000 submissions.
FLAT FEE TAX SERVICE HAS A 96% OFFER IN COMPROMISE APPROVAL RATE
It is easy to be lead to believe how simple it all is. And make no mistake, an Offer in Compromise can be a wonderful way to rid yourself for good of the IRS. But like the Clint Eastwood film, you need to know the good, the bad and the ugly to make sure that an OIC is the right move for you.
And keep in mind that there are other tax relief options – a settlement compromise is not the only way to clear the IRS out of your life. The IRS can agree that you owe the tax debt but not force you to repay it (known as being Currently not Collectible, where the IRS puts you in their bad debt category and leave you alone). The IRS has 10 years to collect taxes – maybe you let the time frame expire (Statute of Limitations) rather than compromising.
I am Dave Rosa. It is my responsibility and my pleasure to provide a thorough, comprehensive and free consultation. Our conversation will take 20 to 30 minutes.
At the end of our conversation, you will have a complete understanding how you tax problem can be relieved.
IRS Problem – IRS Tax Settlement – Los Angeles – California
The tax professionals at Flat Fee Tax Service specializes in IRS tax problem resolution for businesses and individuals. If you have received a notice please call us today at 866-747-7435. We understand tax laws, tax rules and are experts at representing taxpayers before the IRS. We can also help with IRS problems.
Flat Fee Tax Service provides valuable IRS tax debt help and is committed to helping you find a fair solution to your tax debt issue. We will work with you to file back taxes, end an IRS garnishment, avoid property seizure, stop a tax levy and tax liens. An IRS Tax Attorney will resolve your IRS problem. When you work with our IRS tax problem specialists we will, during our consultation, analyze your situation and outline your tax relief options for you. We can help solve your IRS problems and end the harassing phone calls.
IRS PROBLEM – IRS TAX DEBT HELP include:
Failure to File – UNFILED TAX RETURNS
(Filing Back Taxes)
Not filing your taxes can happen for many reasons. The most important first step is to get up to date (IRS compliant) and file your back returns. The tax professionals at Flat fee Tax Service will work with the IRS on your behalf to resolve any past tax return issues, file your back taxes and do all we can to minimize your back tax debt and any penalties associated with your failure to file.
The IRS will not allow you to use other tax debt relief options like an Offer in Compromise or Installment Agreement until your back taxes are filed. Once the back tax returns are filed we can work with the IRS to arrange tax settlement methods if you are unable to pay the balance due.
IRS TAX LIENS – IRS LEVY – TAX GARNISHMENT
Never ignore a notice from the IRS, especially a “Notice of Intent to Levy” – it can have very serious consequences. The IRS can place a tax lien on your property, house, car or wages or even go as far as seizing your property in order to collect the back taxes. Contact our tax professionals immediately so we can stop a tax levy and begin to negotiate a tax settlement on your behalf. When you work through the tax professionals at Flat Fee Tax Service, we can show the IRS that you are trying to resolve the issue quickly.
IRS Garnishment – Wage Garnishment
An IRS Garnishment – Wage Garnishment is one of the ways the IRS uses to collect the taxes you owe. If they contact your employer they will demand that your employer send at least part of your wages (maybe all of it) to the IRS to cover your tax debt. If your wages and paycheck have been garnished, contact our tax professionals immediately if you want to save your paycheck in one day. We will contact the IRS to stop te IRS Garnishment and work out an arrangement to settle your tax debt.
THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE ROUTINELY HAVE AN IRS GARNISHMENT STOPPED AND RELEASED IN ONE DAY.
Not everyone will qualify for an Offer in Compromise (OIC), an IRS settlement agreement, A successful Offer in Compromise can help you settle your tax debt for less than what you owe. We are experienced tax professionals who have experience negotiating Offers in Compromise with the IRS. Contact us today so we can determine if your situation qualifies for this special program.
THE CLIENTS OF FLAT FEE TAX SERVICE HAVE A 96% OFFER IN COMPROMISE SUCCESS RATE.
When you cannot afford to pay your tax debt immediately, tax professionals can help you negotiate lowest possible Installment Agreement with the IRS. This type of payment plan option is good for those who cannot afford a lump sum payment to cover their tax debt but have to many assets to settle.
When your account is placed into a Currently Not Collectible status, that means that your tax debt is removed from the IRS’ active collection status. You may owe less than $10,000 (the minimum for an Offer in Compromise) or you have some assets that may not be accessible to you. The Statute of Limitations will continue to run out on the collectibilty of your tax debt. Contact us today so we can help you determine if you qualify.
I am Dave Rosa. It is my pleasure and duty to provide all who call for their free consultation a complete and thorough evaluation. Our conversation will take 20 to 30 minutes to complete. When we finish, you will know what all of your tax relief options.
Our team of tax professionals not only have a stellar record of success, but we provide our clients with very affordable tax debt help.
Offer in Compromise – Tax Settlement – Settle with the IRS for Less
The IRS has a tax settlement program known as an Offer in Compromise (OIC) which provides financially distressed taxpayers an opportunity to settle their tax debts, including interest and penalties, for a lump sum which is less than the total amount of your tax debt. Some tax debt companies advertise (usually on late night cable tv) this as if it is a brand new or limited time program. In fact an Offer in Compromise has been around since the 1954 version of the Internal Revenue Code. It is true, however, that over the years the IRS has, at least based upon its official guidelines, become more lenient. Nevertheless, except for cases where the taxpayer is truly and irreparably broke, it will require expertise and hard work to convince the IRS that an Offer in Compromise is the appropriate tax settlement solution.
The amount of the Offer in Compromise will vary depending upon your income, assets, liabilities, and future income prospects. Current IRS guidelines allow for the tax settlement to be paid in several installments over a period as long as two years, however, the total payments are higher for a lump sum Offer in Compromise. Many Flat Fee Tax Service clients have paid $100 to $500 to settle with the IRS.
A TAXPAYER DOES NOT NEED TO BE “DESTITUTE” TO QUALIFY TO ACHIEVE A SUCCESSFUL OFFER IN COMPROMISE.
One fact which some tax resolution companies fail to properly explain to new clients it that if the entire amount of the tax, plus accrued interest and penalties can be paid over the remaining life of the collection statute of limitations, the IRS will not consider accepting the Offer in Compromise. This results in a very strange phenomenon. In some situations, the more you owe, the more likely it is that the IRS will accept an Offer in Compromise.
CURRENTLY THE IRS HAS BEEN APPROVING APPROXIMATELY 42% OF THE
Our tax lawyers have found that the negotiation of an Offer in Compromise (OIC) is a lengthy process usually takes 10 to 12 month to complete. While the IRS is processing the Offer in Compromise submission, the IRS must leave you alone. If the IRS fails to reject or accept the Offer in Compromise during a two-year period, the tax settlement will be deemed to be accepted. During the time the OIC is pending, the IRS will not require any payments on old taxes. However, during the time an OIC is pending, you must pay all of your current taxes as they become due, including any quarterly estimated income tax payments and federal payroll tax deposits. If you fail to do so, the IRS will immediately reject your OIC and you will not be entitled to any appeal rights. Furthermore, your deposit, discussed below, will be applied to your taxes and if you wish to make a new Offer in Compromise, you will need to make an additional deposit.
At the time the Offer in Compromise is filed, a deposit must be submitted. The amount of the deposit is 20% of the amount offered for a “lump sum” Offer in Compromise. For a “periodic payment” Offer in Compromise, you must include the first proposed installment with the IRS settlement offer. While a periodic payment OIC is being evaluated by the agency, you must make subsequent proposed installment payments as they become due. If the OIC is rejected, withdrawn, or returned, the IRS keeps any deposits made and applies them to the back taxes you owe. There is also a filing fee for an Offer in Compromise. As of 2016, the filing fee was $186.
If the Offer in Compromise is accepted, you must file and pay all taxes (including any estimated taxes and federal tax deposits) for a period of five years following the acceptance of the OIC. You are going to be required to “be good” for five (5) straight years. If you fail to file your If you breach this or any other term of the OIC, the IRS may immediately proceed against you to collect the entire amount of the original tax liability including interest and penalties, less any payments already received under the terms of the Offer in Compromise, with interest on the unpaid balance accruing from the date of default. An accepted IRS settlement may also be revoked if the IRS determines that there has been a falsification of concealment of assets, or a mutual mistake of a material fact sufficient to cause a contract to be reformed or set aside. In the event your OIC is accepted, a record of the amount of the taxes due and the amount accepted will be available for public inspection for a period of one year at the local IRS office.
The mere act of submitting the Offer in Compromise will extend the time the IRS has to collect the overdue taxes from you for a period of one year, plus the time that the IRS is considering your OIC. This means that if your Offer in Compromise is rejected, the time it took from beginning to to rejection will be added to the Statute of Limitations. Submitting the offer may also delay the earliest time in which you could discharge your taxes bankruptcy. Until the OIC is accepted, interest and penalties continue to accrue on the outstanding balance due. Any refunds owed to you by the Internal Revenue Service for tax years before the end of the calendar year during which the OIC is accepted will be kept by the IRS. Upon acceptance of the OIC, you will give up all rights to dispute the correctness of the tax for any of the years compromised.
THE IRS WANTS TO ACCOMPLISH TWO (2) THINGS: COLLECT MONEY AND CLOSE FILES. AN OFFER IN COMPROMISE ACCOMPLISHES BOTH OF THESE GOALS. THE IRS WILL HAVE COLLECTED “SOMETHING” AND THE FILE IS CLOSED. SO, IF IT CAN BE SHOWN THAT YOU CANNOT PAY YOUR TAX DEBT WITHIN THE STATUTE OF LIMITATIONS, THE IRS HAS AN INCENTIVE TO APPROVE THE TAX SETTLEMENT.
I am Dave Rosa. It is my duty and pleasure to provide you with a comprehensive and free consultation. my conversation with you will take 20 to 30 minutes. You can be assured that at the end of our conversation, you will know if you should do an Offer in Compromise or not.
We have have been doing successful Offer in Compromise submissions for the past twenty years. Our tax professionals will get you through this settlement process successfully.
FLAT FEE TAX SERVICE – 1-866-747-7435
GOOD PEOPLE – DOING GREAT WORK – HONEST TAX RELIEF
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.
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.
IndependentContractor 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.
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.
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.
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.
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.
FLAT FEE TAX SERVICE – GOOD PEOPLE – DOING GREAT WORK
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.
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.