Contacting the IRS, even if it is just to buy yourself time to resolve the issue, goes a long way towards preventing IRS bank levies or other adverse actions. If you have been already levied, you should be aware that they will keep coming after you until the liability has been satisfied in full. Having a levy against your bank accounts is bad news. You probably feel completely helpless and do not know where to turn.
That is why I encourage you to reach out to me. I understand how the IRS works and know tactics that can help ease your situation. However, do not wait. Once you receive that notice from the IRS, the clock starts ticking. If you can make a start on getting your situation resolved during that 21 days, there is a strong probability that the IRS will give you a break. What do you have to lose at this point? Certain public assistance payments including public assistance and public welfare payments from a government agency.
Assistance that comes under the Job Training and Partnership Act. Residences are exempt from levy in small deficiency cases. Primary residences and certain business assets are also exempt, except barring special approval or in certain instances of jeopardy that is documented by the IRS.
Self-employed people in particular often struggle with pyramiding. If you are self-employed, you should set up an estimated tax account, which allows you to set money aside with each payment you receive. That way, you can avoid the trap of falling further behind on your taxes every year. There is no way around the problem of unfiled tax returns or unfiled Form s and Form s. The IRS is aware that you failed to file, and unfortunately, there are no free passes — the IRS will not stop until you bring your taxes up to date, and they will ensure that you do so by placing a levy on your wages and bank accounts.
Not only that, but the IRS and the state of Maryland have the ability to investigate further into the matter and even prepare your tax returns on your behalf. Known as a Substitute for Return SFR , this a process in which the IRS estimates your tax liability, and you usually wind up owing far more than you would have had you filed on your own.
The IRS is legally required to send a Final Notice before they can issue a levy, and they must wait at least 30 days before they can implement the levy. During this day window, you have the right to request a Collection Due Process Appeal CDP , which could lead to the levy action being halted or eliminated entirely. A bank levy can occur due to either unpaid taxes or unpaid debt. However, a debtor who owes money to the federal government would not have as much protection as he would if he owed a private creditor.
The IRS provides sample case scenarios for levies and what you can do. The best way to avoid a levy is prevention: file your returns on time and pay your taxes when they are due. If you need more time to file, you can request an extension , and if you can't make a full payment, contact the IRS and arrange to pay the balance in installments.
They don't go away, and in extreme cases, delinquent tax bills can lead to time in prison. There are different ways to make tax payments. You may be able to set up a payment plan or settle your tax debt for less than the full amount you owe. In some cases, there may also be other options. If you do not work with the IRS to resolve your tax debt and respond to their billing notices, the IRS may levy your property.
The IRS proposes a couple of hypothetical scenarios for levies that may be removed. For example, a son is a signer on his elderly mother's bank account to help her pay her bills, but a levy has been put on his property for some reason. The IRS says the mother or her power of attorney should call the IRS at the telephone number shown on Form A C DO and be prepared to explain why the funds in the bank account are the property of the mother. The IRS may ask for substantiation that the mother is the owner of funds in a bank account.
In the second hypothetical scenario, the IRS has levied a person's bank account after they have fully paid all of their tax liability. Internal Revenue Service. Consumer Financial Protection Bureau. Accessed April 26, Taxpayer Advocate Service. Federal Trade Commission. Income Tax. The longer you ignore your tax obligations, the more pressure they will apply.
That is where I can help. I can put our experience to work for you and make sure you never end up in a levy situation. I may even be able to help you negotiate a settlement with the IRS to pay less than the full amount of your debt.
I may be able to get the IRS to abate some or all of those dreaded penalties that may add up to more than your original tax debt. If a bank levy has caused financial hardship, I will work to get that money back from the IRS. Do yourself a favor. Contact the Law Offices of Darrin T.
0コメント