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.
Are Your Wages Being Garnished by the IRS? Our Tax professionals Can Fix That.
The tax professionals at Flat Fee Tax Relief routinely stop an IRS garnishment (wage garnishment). Our team can negotiate with the IRS to set up payment plans that both satisfy the IRS, and keep you from financial collapse . We can complete your Offer in Compromise and handle the negotiation process to reach the lowest settlement amount possible.
What is an IRS Garnishment (wage garnishment)?
When you owe money to the IRS, theenforcers at the IRS will stop at nothing to collect on that tax debt. This includes taking a sizable portion of your paycheck before it ever even reaches your hands.
An IRS garnishment or “tax garnishment” on on your wages is a type of tax levy the IRS uses to take a percentage of your paycheck directly from your employer. While limitations do exist, employers often fail to provide employees with the necessary Statement of Exemptions and Filing Status form that needs to be completed and returned to the IRS within three days. This can lead to wage garnishments of 75% or more of your paycheck.
Dealing with the IRS directly can be a very painstaking process. Individuals lack the information and resources necessary to accurately complete required documentation. The IRS isn’t in your corner. They make it incredibly challenging to reach any sort of agreement in releasing your wage garnishment.
STOP AN IRS GARNISHMENT – TAX GARNISHMENT – WAGE GARNISHMENT
If you have an ongoing tax debt and the IRS feels that you’re not paying fast enough, the agency has the option of garnishing your wages. A wage garnishment (IRS Tax Levy) is simply a legal seizure of your wages (paycheck) so that the government can satisfy the outstanding tax debt. Typically, an IRS wage garnishment is very severe and only allows you to keep a small portion of your wages.
The IRS will an order to levy to your employer, and before the wage garnishment starts you’ll be asked to complete a garnishment form. You’ll have three days to determine how many tax exemptions you’re allowed to take, and it is these exemptions that will determine how much money you get to keep for living expenses. If you don’t complete the form in time, the IRS will proceed in a manner that works for them. With every paycheck, a portion will go to you and the rest will go to the IRS.
THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE ROUTINELY HAVE AN IRS GARNISHMENT STOPPED AND RELEASED IN ONE DAY.
If you are facing wage garnishment (IRS Tax Levy), you owe it to yourself to consult with the tax professionals at Flat Fee Tax Service. When you meet with us, we’ll ask you several questions, such as:
Were your wages garnished while you were in bankruptcy?
Did the IRS send you proper notices?
Have filed all of your tax returns?
Has the Statute of Limitations on the collection expired?
Do you have a spousal defense?
These are just a few of the reasons why the IRS might choose to stop and release the wage garnishment. There are other circumstances and options available to you as well. This is why you should meet with an experienced tax professional, who has has a track record, to discuss your particular tax problem and all of the tax relief options available to you.
The most important thing to remember is that if you do not have to live with an ongoing wage garnishment (IRS tax levy). A tax garnishment doesn’t have to be as crippling as the IRS wants it to be. True, out of all your creditors, the IRS is legally allowed to take the largest portion of your wages. And, unlike other creditors, it doesn’t have to go to court to get a judgement before doing so. Working with Powell Tax Law, you can work out a tax settlement or at the very least a installment agreement with the IRS so that if you must live under wage garnishment, you can still have a life.
I am Dave Rosa. It is always my pleasure and my duty to provide everyone who calls in, to provide a comprehensive and realistic evaluation of your tax problems.
Still, the best way to deal with wage garnishment is to avoid it altogether. The tax professionals at Flat Fee Tax Service can represent you when the prospect of garnishment is still only a threat or is actually an order to levy. All the possible alternatives to wage garnishment – bank loans, collection delays, payment plans, offer in compromise (IRS settlement) – have one thing in common: they are negotiated by people who understand the system. If you’re not that person, you need professional help. Remember, the IRS has the right to take other property such as your bank account and other assets to satisfy an outstanding tax debt. Let out team of professionals represent you so you can make other arrangements.
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.
California Franchise Tax Board (FTB) Bank Levy – How To Release And Resolve
The State of California is broke. Everyone knows this fact. The California Franchise Tax Board is very aggressive and very tough to negotiate with. We do not recommend you “go it alone.”
A California Franchise Tax Board bank levy (also wage levy) is a legal action by the State of California where funds are taken from a bank account (also your paycheck) of a tax debtor for back due tax debts. This state tax levy is called an “Order To Withhold,” FTB bank levies are difficult to release and in most situations a release is not possible especially if you are attempting to do so on your own.. If you have received a bank levy or wage levy, you should still proceed immediately on resolving your case as other collection action may be in the works.
When Is A California Franchise Tax Board Bank Levy Issued?
Tax Levies are issued to bank accounts after a final notice to the taxpayer is sent requesting them to resolve the balance and no contact or arrangements are made. Time beyond what is stated in the letter can be granted if you or your tax attorney call in to resolve the case. Doing nothing almost always eventually results in a levy on any bank account at a bank for which you have received a 1099. Often a California Franchise Tax Board lien has gets filed if it already is not on file.
Take immediate action on the debt on your own or hire a tax attorney to get things going. Otherwise you risk a FTB bank levy or wage levy. The best way to take action is to resolve the tax debt, which prevents the tax levy from happening in the first place.
Stopping A California FTB Bank Levy Before It Starts
A California Franchise Tax Board (FTB) bank levy is stopped when your case is resolved or pending resolution. Collection action is not stopped by filing an Offer In Compromise in all cases, but it is in most.
The four most common ways to resolve a balance with the FTB are:
Pay In Full – Pay off the debt completely – This is probably not an option.
File Bankruptcy – Stops the FTB from taking any further collection action
An FTB Offer in Compromise is considered the best form of California tax forgiveness, but not everyone will qualify. A California Franchise Tax Board (FTB) bank levy or wage levy will not be issued if any of the other options is in place.
California Franchise Tax Board Levied My Bank Account! What Do I Do?
Release the Tax Levy, If Possible
Releasing the tax levy is very difficult. The majority of cases result in seizure of funds. The FTB issues an Order to Withhold. The bank holds funds for 10 days before being transferred over to the FTB. An extension on the FTB taking the money can be issued by an FTB agent if you contact them and are dealing with them to try and get it released. The same holds true if your wages are levied.
There are three main ways to release a California Franchise Tax Board bank levy:
Prove a financial hardship (Currently not Collectible)
Show that the money belonged to someone else
Show that the tax levy took funds that are exempt from the tax levy
Prove another extraordinary circumstance
Proving Financial Hardship for A
FTB Bank Levy Release
Releasing an FTB bank levy by financial hardship is tough. Being elderly helps in this type of argument for a California Franchise Tax Board bank levy release as well. Eviction notices can help build your case as well. Financial hardship is tough to prove on your own. Even though you may qualify for a 12 month hardship on your case, this does not mean you are in hardship enough for them to release your bank levy every time. Do not wait until you get a better job or have more money to contact the FTB. You could get levied in the process.
The Money Is Not Mine! Release My Bank Levy!
A tax attorney holding money in trust for clients would get a release. Your grandma accidentally deposited her money into your bank. Prove it and that would get a release usually. In order to get this kind of FTB bank levy release you need good proof in the form of documentation. An explanation by itself is not going to work.
Exempt Funds From California Franchise Tax Board Bank Levies
Social Security income and veterans’ benefits are exempt from FTB levies.The funds can be released if they are levied by you or your tax attorney contacting the FTB. Other forms of public assistance are usually exempt as well. This is the easiest type of FTB bank levy release to get.
Other Extraordinary Circumstances for FTB Bank Levy Release
FTB bank levies can be released, but you must prove an extraordinary circumstance that makes sense to the FTB agent handling the case. Don’t count on the FTB agent accepting anything here.
The First Levy Won’t Be The Last If You Do Nothing
Get to resolving your case or hire a tax attorney to handle it for you once you receive a California Franchise Tax Board bank levy. Receiving the levy is a sign that your case is deep in collections. Do not plan on getting the levy funds back, but it might be possible. If you do it is a bonus.
FLAT FEE TAX SERVICE – TAX ATTORNEY – 1-866-747-7435