The IRS has a Large Dollar Unit that specifically handles these tax debt over $100,000. For Large Dollar Cases, the IRS will send out specially trained agents called Revenue Officers in the local field branches. There’s also a Large Dollar Case Unit within the Automated Collection System (ACS) unit for cases still in the collection computer system. An IRS Revenue Officer are highly trained IRS agents and carry a badge and handcuffs.
The IRS gets into significant detail while investigating a taxpayer’s ability to pay. Because of this, it’s absolutely necessary to have not just a tax professional but anIRS Tax Attorney represent you.. When an IRS Revenue officer comes to your door and leaves a card, the IRS means business. The IRS Revenue Officer will be looking for a cover up, deceit, or fraud because the dollar amount is so high. Flat Fee Tax Service specializes in large dollar IRS cases and have represented many in the past.
DON’T FOOL YOURSELF. IRS REVENUE OFFICERS HAVE HEARD IT ALL. YOUR ARE NOT GOING TO “B.S.” A REVENUE OFFICER. THE BEST THING YOU CAN DO IS TO BE POLITE AND TELL THE REVENUE OFFICER THAT YOUR TAX ATTORNEY WILL CALL HIM/HER IMMEDIATELY.
The Basics for Large Dollar IRS Cases:
The IRS will start with a courthouse search for real property and a DMV search. The IRS will also pull credit reports from all three credit agencies.
The credit report contains a wealth of information such as average monthly charges, purchases you are making, assets you’ve purchased, and much more. The IRS can also find out who has made inquiries and whether you have turned in a financial statement to that source.
The IRS can summon the company for that financial statement and compare it against the financial statement you gave the IRS. The IRS has their own internal locator and can use this locator to review income records from over the last six years of all 1099’s, W-2’s, tax returns, or any third party reporting of income that has been given to the IRS.
WITH THE MODERN INTERNET, IT IS MUCH EASIER FOR THE IRS TO FIND OUT EVERYTHING ABOUT YOU.
A new source that is being used by the IRS is FBAR information that reports overseas bank and financial records. IRS can also inquire of a bank CTR of any cash activity over $10,000 or more.
Then a search engine called Accurint or Lexis Nexis is used to search over 37 billion current public records in order to detect fraud and verify identities and also help the IRS investigation. This search engine is one of the go to tools of the IRS.
The IRS will also look to other external sources. The public search engines such as Google, Bing, Yahoo, LinkedIn, Facebook, and other social media can let the IRS agent know about your life habits.
During their investigation, the IRS can also use information from Passports, conduct 3rd party interviews, vessel and license checks at the courthouse all at the click of a button. They will check for Patents, Trademarks, Franchises, Licenses, Domain Name of a website or even summon your homeowners policy to find out about your personal assets.
Modern technology has allowed the IRS and any government agency to access a plethora of information about you. The IRS spends a lot more time looking at these high dollar cases. at Flat Fee Tax Service, we know exactly what their questions will be and how to answer them. We work with you to remove the problem areas before the IRS gets to the case. Let our many years of experience work for you.
The tax professionals at Flat Fee Tax Relief provides valuable IRS tax debt at a very affordable fee. Our teams are located in Clearwater, FL and San Diego, CA. It is our pleasure and duty to provide you with a thorough and comprehensive consultation. Our conversation will take 20 to 30 minutes.
The time we spend on the phone will be well worth your time. We will provide you with the necessary information to make an informed decision.
FLAT FEE TAX RELIEF –FLAT FEE TAX SERVICE 1-866-747-7435
GOOD PEOPLE – DOING GREAT WORK – HONEST TAX RELIEF
Offer in Compromise – Tax Settlement – Settle with the IRS for Less
The IRS has a tax settlement program known as anOffer 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 television) 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 Relief 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 professionals 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.
The tax professionals at Flat Fee Tax Relief provides valuable IRS tax debt help at a very affordable fee. Our teams are located in Clearwater, FL and Dan Diego, CA. It is our 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 RELIEF – FLAT FEE TAX SERVICE 1-866-747-7435
GOOD PEOPLE – DOING GREAT WORK – IRS TAX DEBT HELP
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.
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 RELIEF 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.
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 RELIEF HAS A 96% 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 (FEDERAL PAYMENT LEVY PROGRAM). 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.
The tax professionals at Flat Fee Tax Relief provide valuable IRS tax debt help at a very affordable fee. Our 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 RELIEF –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.
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.
FLAT FEE TAX SERVICE – FLAT FEE TAX RELIEF 1-866-747-7435
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.
Pay the tax debt in full with Penalty Abatement if possible.
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 – FLAT FEE TAX RELIEF 1-866-747-7435
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 THE LEVY 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
An Offer in Compromise is an option that you have with the IRS to settle your back income taxes. If you owe a substantial amount of money in federal taxes ($10,000 or more), you can submit an IRS settlement agreement through the Offer in Compromise program for less than your total outstanding balance and see if the IRS accepts it. Generally considered the “nuclear option” if you have a tax bill you doubt you’ll ever be able to pay off, filing an offer in compromise is a long and daunting process (an Offered settlement can take 12 months) with many confusing and seemingly contradictory requirements.
Even though the Offer in Compromise program was simplified through the Fresh Start Initiative, gathering all the necessary paperwork for an offer in compromise is incredibly time to consume as is staying on top of communications from the IRS regarding your settlement offer. However, if your income tax debt is significant and/or you are in poor shape financially, it may be worth it to take the time to submit an Offer in Compromise.
Offer in Compromise Types
First, you, the financially struggling taxpayer, need to know what type of offer in compromise you should file. There are two chief types of offers: doubt as to collectibility and doubt as to liability. Doubt of collectibility offers are made if it doesn’t look like the IRS will have any chance of collecting all or most of your outstanding balance right now or in the near future because your assets and income are outweighed by your outstanding balance. If you are filing a doubt as to liability offer in compromise, the premise for settling your back taxes is that there have been tax administration errors, and you don’t actually owe as much as the IRS says you do. Your liability isn’t supposed to exist under the current tax law, or ministerial errors were made.
An Offer in Compromise can also be made in the name of effective tax administration, where you are not arguing that tax law was correctly applied (and your balance is collectible to an extent) but that paying your outstanding taxes would cause a significant financial hardship, and the IRS isn’t going to get any money out of you as a result. For example, the value of your home could determine that your tax liability is collectible but losing your home would result in hardship.
THE ONLY TYPE OF OFFER IN COMPROMISE THAT YOU NEED TO BE CONCERNED WITH IS: DOUBT AS TO COLLECTIBILITY
Fees and Low-Income Certification
Generally, there is a $186 nonrefundable application fee when you apply for an offer in compromise. It is totally separate from any tax payments and doesn’t count toward your outstanding balance. The only exception to this is if you are submitting an offer based on doubt as to liability. The fee is also waived if you qualify for the low-income exception. If your monthly income falls at or below 250% of the poverty guidelines set by the Department of Health and Human Services, you can check off the low-income certification section of the offer in compromise form (Form 656).
FLAT FEE TAX SERVICE HAS A 95% IRS SETTLEMENT AGREEMENT SUCCESS RATE.
Eligibility and Taking Care of Unfiled Tax Returns
The IRS Tax Lawyer at Flat Fee Tax Service who is handling your IRS tax problem, will ensure that you’re eligible for an offer in compromise. If you are in open bankruptcy proceedings, you can’t make an offer.
Next, you need to make sure that you’ve filed all outstanding tax returns. The alternative is to wait for the IRS to file substitute returns on your behalf, but this frequently doesn’t have the best outcome. Substitute returns only account for the bare minimum of tax benefits and rely on data already in the system, such as W-2 and 1099’s on file, opposed to what your actual tax situation could look like. Because of this, your total outstanding tax debt could look a lot larger than it really is and make it harder for your offer to be accepted as a result.
HAVE AN EXPERIENCED IRS TAX LAWYER REPRESENT YOU.
Compiling a Personal Financial Statement
You need to prove that your income and assets are insufficient to pay your entire outstanding tax balance. IRS Form 656 has two different financial statement forms, one for individuals and businesses, with an extra section for self-employed taxpayers. This statement is incredibly exhaustive as you must provide information about your and your spouse’s employment, whether your dependents and other people living in your household contribute to the household income, household expenses, vehicles and other assets, and virtually anything else related to your ability to pay down your tax debt. You must include copies of documents such as pay stubs, car notes, student loan payments, and other proof of your expenses, income, assets, and debts to substantiate what you entered on the financial statement. If you are self-employed, you need to provide an extensive breakdown of assets used in your business as well as where your income comes from and the type of expenses you have.
The purpose of collecting so much financial information is so that the IRS can determine if you can pay your balance in a reasonably short time frame and that it doesn’t merit the other resolution options available to you such as going on a payment plan or making your account temporarily uncollectible.
Making the Offer in Compromise and Choosing a Payment Plan
Once you’ve compiled your financial statement, which should support your Offer in Compromise amount and how much you are able to pay, you then make the actual offer. The offer price should be as close to the original tax liability as possible, within reason.
You also will specify if you will make the offer in five payments or less with a lump-sum payment plan or periodic plan (typically monthly). If you are opting for the lump-sum option, your package must include a payment for 20% of the total offer amount. For periodic plans, including the first period’s payment in your package. You then need to stay current on these payment plans while waiting for the IRS to make a decision.
Waiting for the IRS to Respond
Once you submit the settlement offer and your initial payment, you must honor the payment arrangement proposed in your offer even though it will take time for you to get a response. While the IRS is processing your offer, you need to keep making these payments or else your offer will be voided. The only exception to this rule is if you meet the low-income certification guidelines.
Another important factor to consider is that while you wait for the IRS to accept or reject your offer in compromise, penalties and interest will still mount on your outstanding balance. Collection actions will be suspended, but you may still receive a federal tax lien that won’t be released until the terms of the offer have been satisfied. Because of this, if you have any outstanding installment agreements, then you don’t need to make payments on them.
If you received a notice that your offer was accepted, or two years passed from the date that the IRS received your offer, and they still didn’t respond with a decision, then your offer has been deemed acceptable. You still must keep up with the payments that you were making while waiting for a response, except that now your outstanding balance has been reduced to your offer amount. If you have any federal tax refunds for future tax years, they will also be applied to your outstanding balance.
A Returned Offer in Compromise and Rejections
A common mistake people make when submitting an offer in compromise that comes back to them is confusing it for a rejection. The IRS will sometimes send back an offer in compromise package if the information is missing. Other reasons for returning the offer package include failure to enclose the application fee or make the first payment, didn’t file the required tax returns, or didn’t pay current tax liabilities while the offer was being considered. While being in open bankruptcy proceedings generally deems you ineligible, you can still try to submit an offer in compromise, and it will just get returned instead of outright rejected.
This distinction is important because having an offer package returned to you doesn’t give you a right to an appeal. Your submission date completely resets once you’ve gathered all the missing information and/or payments and can resend your offer, starting the entire process all over again. This means that you will need to update your financial statement as well as provide new and current supporting documents.
If your Offer in Compromise is rejected, however, you will receive a formal rejection notice in the mail with detailed instructions on how to elevate your case to the IRS Office of Appeals. Your request for an appeal has to be made within 30 days from the date on this letter, or else you’ll have to start an entirely new offer from scratch. You will usually be given reasons for rejection and have the opportunity to dispute them as well as make a counteroffer for the amount you will pay over time.
Potential Consequences of Submitting an Offer in Compromise
If the IRS accepts your Offer in Compromise, you will never be able to dispute the amount in court or anywhere else. If you wind up having to file for bankruptcy after the offer has been accepted, the amount of federal taxes you owe now can’t be disputed.
If you suspect that you are going to default on a payment plan once they IRS has accepted an offer in compromise, you should contact the IRS immediately so your offer isn’t voided in the event of an emergency such as job loss, domestic violence, or health problems.
FLAT FEE TAX SERVICE – 95% OFFER IN COMPROMISE SUCCESS RATE
What should you do when you receive an IRS Notice well the short answer is to call the IRS tax professionals at Flat Fee Tax Service. Why is that? Our IRS Tax attorneys have been successfully defending taxpayers and having their tax levies stopped and tax debt settled. That’s why.
Receiving a notice from the IRS is not something most people look forward to. You may be confused as to what the notice is saying, and afraid of the possible consequences, such as owing substantial back taxes, interest, and penalties.I
There are two important things to know about most IRS notices:
1. You may have the right to challenge or appeal the action the IRS is taking, and You usually have a limited time to do so.
2. If you toss the IRS notice aside and forget about it, you may lose out on your chance to appeal an incorrect tax assessment or to stop an IRS collection action. The IRS is also much easier to deal with when you are proactive about solving your tax problems, rather than failing to respond to IRS notices and hoping for the best.
There are many different types of IRS notices, but the Notice of Deficiency and the various collection notices are two common ones that you should be aware of.
The Notice of Deficiency
The Notice of Deficiency, also known as a 90-day letter, is the last best chance to disagree with the IRS determination of additional tax due. Don’t ignore it! If you do, you will be very unhappy later.
Once you receive this notice, you have 90 days to file a petition in Tax Court. If you have any reason to believe that the IRS has made an error in computing the tax, you should contact a tax litigation attorney immediately, so you can argue your case in Tax Court.
After filing your petition, you may not need to go to court at all. Your tax attorney may be able to negotiate a settlement that eliminates some or all of the assessed tax. Even if you and your attorney decide that the IRS is likely to win their case, you can negotiate an installment plan or Offer in Compromise in order to avoid any IRS collection actions.
IRS Collection Notices
There are many different types of notices to inform you that the IRS is about to use its broad collection powers to take your assets. Some of these notices include:
If you receive any of these IRS notices, you need an IRS Tax Attorney. When the IRS sends out one of the above notices, it means that the IRS is about to—or already has—seized your property, whether it was the funds in your bank account, a portion of your wages, or something else.
IF YOU HAVE RECEIVED ANY OF THESE IRS NOTICES, YOU NEED AN IRS TAX ATTORNEY TO PROTECT YOUR RIGHTS.
You have a right to challenge these collection actions, whether they have already happened or not. In most cases, you can request a Collection Due Process hearing, but you only have 30 days to make such a request.
You may or may not be able to dispute the INCOME tax assessment at this point, but you can challenge the specific collection action being taken, and either agree to a payment plan or Offer in Compromise, either of which is preferable to having the IRS drain your bank account or garnish your wages.
CALL OUR IRS TAX HELP PHONE AT 1-866-747-7435 FOR YOUR FREE AND CONFIDENTIAL CONSULTATION.
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The IRS will allow a taxpayer to pay off an income tax debt through an installment agreement. Because interest and penalties will apply. The IRS encourages taxpayers to pay taxes immediately because the IRS is a very powerful collection agency. To “encourage” a taxpayer to pay off their past due to income tax debt, interest and penalties will be added and can equal 8% to 25% per year. If you do nothing, your overdue income tax debt could double in 4 years.
For most financially struggling taxpayers the thought of paying the entire income tax debt all at once is not possible. An installment agreement is an alternative allowed by the IRS. The IRS has four different types of installment agreements: guaranteed, streamlined, partial payment, and non-streamlined.
BEFORE YOU AGREE TO AN IRS PAYMENT CONSULT WITH AN EXPERIENCED IRS TAX RELIEF EXPERTCALL: 1-866-747-7435.
Owe less than $10,000, (not including interest and penalties);
In the previous five years, the taxpayer has filed tax returns, paid taxes owed, and has not entered into an installment agreement;
The taxpayer is unable to pay the tax liability when due;
The tax liability will be paid off within three years; and
The taxpayer must pay at least the minimum monthly payment (tax liability, interest, and penalties divided by 30)
Under this payment plan, the IRS will not file a federal tax lien against the taxpayer.
The IRS Streamlined Installment Agreement
In most cases, a taxpayer that qualifies for a guaranteed agreement will also qualify for the streamlined installment agreement. A streamlined installment agreement has the following requirements:
The tax liability, interest, and penalties do not exceed $25,000;
The balance can be paid off within 60 months; and
The proposed payment is equal to or greater than the “minimum acceptable payment” (the minimum acceptable payment is the greater of $25 or the minimum payment amount reached by dividing the tax liability, interest, and penalties by 50)
The taxpayer must pay a fee of $105 to set up the installment agreement or $52 for a direct debit installment agreement. To restructure or reinstate a previous installment agreement, the IRS charges a $45 fee. Like a guaranteed installment agreement, the IRS does not file a federal tax lien.
IRS Partial Payment Installment Agreement
A partial payment agreement allows the IRS to enter into agreements with taxpayers for the partial payment of a tax liability. To qualify for this arrangement, the taxpayer must complete a financial statement using Form 433-F to report income and living expenses. The IRS will review and verify the information. If the taxpayer has assets that can be sold to pay some of the tax debt, the IRS will require the taxpayer to provide additional information.
If approved, the taxpayer will be required to participate in a financial review every two years. This review may result in the increase in installment payments or the termination of the agreement.
IRS Non-Streamlined Installment Agreement
If a financially struggling taxpayer owes $25,000 or more and can make monthly payments to the IRS, a non-streamlined agreement can be an option. The IRS will not automatically approve this agreement; instead, the taxpayer must negotiate with the IRS by providing detailed financials. The taxpayer must file Form 433-F, Collection Information Statement. This form collects information about income, debts, living expenses, assets, accounts, and allows the taxpayer to propose an installment payment amount.
It will usually take a few months for the IRS to review a proposed payment plan. The IRS may refuse a proposed agreement if it considers some of the taxpayer’s living expenses unnecessary, if the untruthful information was provided, or if the taxpayer failed to complete a prior installment arrangement.
If a taxpayer is unable to pay a tax liability through a non-streamlined agreement, consider filing an Offer in Compromise.
BEFORE YOU COMPLETE A FINANCIAL FOR THE IRS
CONSULT WITH AN EXPERT IRS TAX PROFESSIONAL
the IRS Will Accept Payments
Taxpayers can make installment payments in the following ways:
Check or money order
Electronic Federal Tax Payment System (EFTPS)
Online Payment Agreement (OPA)
When Will the IRS Revoke an Installment Agreement
The IRS can revoke an installment arrangement under the following circumstances:
The financially struggling taxpayer misses a payment;
The financially struggling taxpayer does not file a tax return or pay taxes after the agreement is entered into ;
The financially struggling taxpayer provided inaccurate information on Form 433-F; or
The financially distressed taxpayer is paying under a partial payment installment agreement and a review indicates a change in their financial position.
BEFORE YOU AGREE TO AN IRS INSTALLMENT PAYMENT PLAN
FIND OUT IF YOUR CURRENTLY NOT COLLECTIBLE
FIND OUT IF YOU ARE QUALIFIED FOR AN IRS SETTLEMENT
DO NOT AGREE TO PAY THE IRS MORE THAN YOU NEED TO PAY
CONTACT FLAT FEE TAX SERVICE
“America’s Best & Most Affordable IRS Income Tax Relief Team”
our clients with IRS wage garnishment ROUTINELY HAVE their IRS wage GARNISHMENT stopped, released and removed in one (1) business day.
The tax professionals at Flat Fee Tax relief have been routinely saving our client’s paychecks, bank accounts and Social Security for more than a decade. Located in Clearwater, FL and San Diego, CA, we provide valuable IRS tax debt help at a very affordable fee.
IRS wage garnishment and IRS Levies will be stopped, released and removed in one business day if done properly. One has to realize that the last resort the IRS utilizes is a wage garnishment or levy. This is one of the most lethal weapons available to the IRS. There are several ways to have the levy or garnishment released.
The first thing that has to be done is to verify that the taxpayer is in compliance with the IRS. Being in compliance means that all outstanding and missing tax returns for every year have been filed with the IRS. Those tax returns include 1040’s, 1099’s, quarterly estimated tax payments, 940/941’s depending on the particular situation of the taxpayer.
The first thing to do in order to determine if you are in compliance with IRS regulations is to immediately contact the IRS upon receipt notice of an IRS garnishment or levy. Be advised that you need to be extremely cautious (the IRS is not your “buddy”) when contacting the IRS in regards your IRS income tax problem. Before the IRS will give you any information on your compliance, they will immediately interrogate you, trying to find out what bank accounts you have, what other incomes you have and the assets you own. This is all in an effort to begin to levy, garnish or seize any assets the taxpayer may have. This is one of the main reasons why an IRS tax professional should contact the IRS on behalf of the financially struggling taxpayer. An IRS Tax Attorney does not have to release that personal information to the IRS. Our goal at this point is to determine if the taxpayer is in compliance with the IRS.
Everything is determined by the IRS computers and the automated collections system (ACS). The only way to be brought into compliance is by filing all years that were not filed. Depending on what the computer states, you may have to file 6 year’s worth of IRS tax returns or they may even go back to 15 year’s worth of taxes. This is why the IRS must be contacted immediately to figure out what needs to be done to bring the taxpayer back into compliance.
If there are compliance issues, the IRS will inform the tax professional or the taxpayer what taxes must be filed. It is important to prepare these taxes, but not to mail them in. They need to be faxed to the IRS so they are acknowledged in the IRS computers immediately and the processing of these returns can start within hours, not weeks or months. Normally, the IRS will not release the wage garnishment until the tax returns are at least submitted for processing to the IRS.
Our IRS Tax Attorneys Have Had Great Success in Stopping an IRS Levy Prior to Filing Missing Tax Returns
If necessary, the tax return department at Flat Fee Tax Service, Inc. can expedite the preparation of your tax returns. Once it is determined that a taxpayer is in compliance, the next thing the IRS is looking for is a resolution to the outstanding income taxes owed to the IRS. A taxpayer will either need to enter into an Installment Agreement, be declared to be Currently not Collectible (CNC) or file an Offer in Compromise settlement (OIC).
Should the financially struggling taxpayer owe more than $25,000, the IRS will request your financial information through certain IRS Forms in order to determine how much, if anything, the taxpayer can afford to pay towards the entire income tax liability. If your file is being handled in the automated collections division, an IRS 433F form (a simplified Collection Information Statement) has to be prepared and submitted along with supporting documentation. If the file is with an IRS Revenue Officer, an IRS 433A form (a detailed Collection Information Statement) has to be prepared and filed with the Revenue Officer, also along with the supporting documentation. The IRS has many years of experience in squeezing uninformed taxpayers and the IRS knows that in 90% of the cases, the wage garnishment or IRS levy is a hardship on the taxpayer, and the proper procedure is that after submitting these financials, the IRS should release the wage garnishment within hours. Unfortunately, some taxpayers try to perform this procedure by themselves. Without an experienced tax professional involved, the IRS will simply drag their feet and prolongs the taxpayer’s agony because it is the IRS’s position to take this drastic action due to the fact that the taxpayer did not comply with any of their prior requests. The IRS tax professional chosen to represent you should force the IRS to comply with the rules and regulations to have these matters expedited within hours and not weeks or months.
WHEN YOU NEED THE BEST IRS INCOME TAX REPRESENTATION GO WITH THE BEST
VERY, VERY IMPORTANT: There is a second method of having an IRS wage garnishment or IRS levy stopped, removed and released. Our IRS Tax Attorneys will initiate procedures to prove to the IRS that this IRS wage garnishment is a true and immediate hardship to the taxpayer. A hardship to the taxpayer is that housing, transportation or food expenses are at an immediate risk; i.e. if your electricity is about to be disconnected, and you can provide a statement from your service provider showing that your electricity is being shut off due to non-payment or if you are able to provide an eviction notice or foreclosure notice due to non-payment the same method applies. Asking the IRS to release the wage levy based on these facts is a very difficult task because the IRS is receiving nothing in return providing a solution to the outstanding taxes. This is an uphill fight with the IRS but the IRS is supposed to follow procedures and in most situations, the taxpayer is unable to resolve this issue without a tax professional.
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