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IRS Levy Release Helpdotcom |
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Glossary of Tax Terms Asset Seizure (Levy)Asset Seizure, or levy, is an action the IRS can take as payment of tax liabilities. The IRS can seize personal and business assets. Asset seizure is usually the result of ignoring an IRS problem. If IRS attempts to communicate are ignored, it will attempt to get a taxpayer's attention by sizing their assets. And it will make good on its threat to do so. Among the items seized can be real estate, vehicles, business equipment, personal property, bank accounts, retirement funds, Social Security and accounts receivable. After the assets are seized, they are sold at a public auction. We can help when a threat of seizure has been received, and even after assets have been seized. But time is of the essence. An Asset Levy Release can be sought to release your assets, and the process of moving toward an overall financial solution can begin. Full payment of taxes, penalties, and interest is not the only way to resolve an asset seizure. Equity Search personnel are experts in helping evaluate the options. If you are at the point of Asset Seizure, there is no time left—call immediately. Asset Levy ReleaseOnce assets have been seized, it is possible to get them released pending certain negotiations with the IRS via an Asset Levy Release. If property has been seized, time is of the essence. If contacted in time, we can help obtain an Asset Levy Release. Bank LevyIf taxes are owed, the IRS can send a Notice of Levy to a taxpayer’s bank. Upon receiving the money, all money in all accounts associated with a taxpayer’s social security number is frozen. The money becomes inaccessible. If attempts are made to cash checks written against the frozen account, those checks will bounce. Only the balance of funds in the bank on the day the levy notice is received by the bank is affected - deposits may be made at anytime after the levy has been received and the account holder will have access to those newly deposited funds. The bank holds the money for 21 days, and then it must remit the funds to the IRS. Although IRS Bank Levies are more difficult to release than IRS Wage Levies, it can still be done. The 21-day period where your assets are frozen is our opportunity to negotiate with the IRS and find a way to reach an agreement to release the bank levy. A Bank Levy Release is an action taken by the IRS that unfreezes a levied bank account and reopens access to funds. Obtaining a Bank Levy Release is a negotiation process with the IRS. We can help negotiate with the IRS and obtain the release within the 21-day window. After obtaining the release, we can move forward by discussing options for further negotiation regarding IRS tax liability. Currently Not Collectible (CNC)“Currently Not Collectible” is a status assigned to taxpayer’s debt to the IRS when the taxpayer can’t afford to make any payments for a certain period of time. Currently Not Collectible is assigned when even small monthly payments would cause severe economic hardship. If the IRS agrees that a debt is Currently Not Collectible, it won’t pursue collection for a certain period. Where possible, we strive to classify a client as CNC in order to give him/her time to become more financially stable. CNC status suspends a taxpayer’s account for a year or two. After that time, the IRS will contact the taxpayer for updated financial statements. During this time, however, interest and penalties continue to accrue on the unpaid taxes, and the tax debt doesn't go away. Despite the drawbacks, it is an essential process for some to help regain financial footing. We analyze each new client's case to determine whether Currently Not Collectible is the right approach, and whether it is or isn't, we always highlight the best possible solution for each individual client. Federal Tax LienA Federal Tax Lien is a public record filed by the IRS proclaiming that a taxpayer owes taxes. The Tax Lien is filed with the County Clerk in the county from which the taxpayer or the business operates. A Lien can cause significant financial challenges, for example, difficulty in obtaining credit. There are a variety of options in getting a lien released. It is important to act on a Federal Tax Lien in order to prevent further action by the IRS. Further action could include seizure of business and personal property, levies on bank accounts or wages (taking wages or money in savings and applying it toward the taxes owed). IRS will typically not release a lien until the underlying tax debt is either completely paid or expires due to the Statute of Limitations on Collection. Offer in Compromise (OIC)An Offer in Compromise allows taxpayers to get a fresh start by settling all back tax liabilities for an amount less than the full amount owed. If a taxpayer can't pay their tax debt in full, or has a dispute with the amount the IRS claims he owes, the taxpayer can propose to resolve the matter with an Offer in Compromise. The ultimate goal is a resolution that is in the IRS and taxpayer's best interests. We maintain professional relations with several of the nation's best OIC firms and frequently offer client referrals to our trusted colleagues. Payroll Taxes—Failure to Pay on TimeWhen you fail to pay payroll taxes on time, IRS penalties and interest will immediately start to accrue. The IRS is highly aggressive in their efforts to collect past-due payroll taxes. Penalties assessed on delinquent payroll tax deposits or filings can significantly increase the total liability in just a few months. The penalties can cause additional hardship for a business where cash flow is already a problem. Professional representation in matters concerning failure to pay payroll taxes is important—the way a business owner answers the IRS’ questions can determine whether or not the business survives. Although we prefer not to handle Payroll Tax issues ourselves, our network of professional contacts provides our clients with excellent assistance. We also recommend that our clients seek local representation since most IRS Payroll Tax issues are handled from a local IRS Field Office. Innocent or Injured SpouseIf the IRS is trying to collect taxes from debt incurred by a person’s spouse or former spouse for Federal or state tax debt, child or spousal support debt or other debt, that person may qualify for relief as an “innocent spouse” or “injured spouse.” Filing a joint return means that both parties have agreed to be jointly and individually liable for all taxes, penalties and interest due on that joint return. Even if a divorce decree or other agreement states that a former spouse will be responsible for amounts due on previously filed joint returns—both parties are liable. We can help determine whether you qualify for innocent or injured spouse stats, and can help negotiate relief. Installment Agreements (IA)An installment agreement is a negotiated payment plan to pay off IRS tax debt over a specified period of time. In general, after initiating an installment agreement, the IRS will review a taxpayer’s financial situation in approximately two years and determine whether the monthly payments can be increased. In an installment agreement, penalties and interest continue to accrue, even while the taxpayer makes monthly payments. This can mean that, despite a large monthly payment to the IRS, the outstanding balance may continue to increase due additional penalties and interest. We always include IA calculations in our work for our clients, and we explain the intricacies of these agreements and negotiate them with the IRS to maximize the chance that an agreement favorable to the taxpayer is accepted. we always keep our clients' best interests in mind in our dealings with IRS and structure the negotiations to result in the best outcome for each client. Taxpayer Assistance Order (TAO)When appropriate, but typically as a last resort (as problems can almost always be solved by other means) an Application for Taxpayer Assistance Order can be filed with the Taxpayer Advocate Service. The Taxpayer Assistance Order (TAO) is initiated by filing IRS Form 911. It applies to cases where a taxpayer is suffering or is about to suffer significant hardship because of the manner in which Internal Revenue Laws are administered. Examples of hardship might include the inability to buy food, pay household bills, make payroll; or owning property that is under imminent seizure or sale by the IRS. Through a TAO, IRS may stop levies and other actions. In addition to other requirements, before submitting a TAO it must be demonstrated that attempts were made to resolve this matter with the Revenue Officer in charge of a case. As soon as Form 911 is filed, all collection efforts must cease. A Problem Resolution caseworker tries to intervene on behalf of the taxpayer and resolve the problem—usually an agreement whereby the taxpayer makes an effort to pay or makes a compromise on the tax liability. We resolve most of cases without the need for TAO, but we also have a wonderful relationship with them and appreciate their help when we cannot reach what seems to us to be the best possible solution to our clients' problems. Taxpayer AdvocateThe Taxpayer Advocate Service is an IRS program that provides an independent system to assure that tax problems, which have not been resolved through normal channels, are promptly and fairly handled. Each state and service center has at least one local Taxpayer Advocate, who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. The Taxpayer Advocate independently represents taxpayer interests and concerns within the IRS. This is accomplished in two ways:
Trust Fund Recovery PenaltyThe money a business withholds from an employee's paycheck to pay federal income tax and the employees' share of FICA and Medicare is called a Trust Fund. These withholdings are held 'in trust' until the business pays it to the IRS. The Trust Fund Recovery Penalty, commonly known as the 100% Penalty, is assessed for Trust Funds not paid to the IRS. The IRS may assess the penalty against anyone responsible for collecting or paying these funds who willfully fails to collect or pay them. Determining who the “responsible person” is and whether or not willfulness exists depends upon the facts and circumstances in each case. In such cases, we recommend that you seek local representation due to the complexity of these issues and the need for face-to-face meetings with your representatives and also with IRS personnel. Wage LevyA Wage Levy, or garnishment, is the action the IRS may take in order to get the attention of a taxpayer who is ignoring IRS attempts at collecting past due taxes. The Wage Levy may be activated against wages, salary or other income. The IRS sends a Notice of Levy to the taxpayer’s employer, mandating that they withhold a specified amount from the taxpayer’s paycheck. The entire paycheck is usually note garnished, but the person may be left with only a small amount to live on. That amount is usually not enough for you to pay the bills, mortgage or other living expenses. A Wage Levy continues until the IRS releases it or the total tax liability has been paid. As you see all over this website, releasing IRS Wage Levies is our top service. Wage Levy ReleaseIf your wages have been levied you probably are frightened beyond belief. You would appreciate some fast action to get your paycheck restored and put a muzzle and a leash on the IRS Pit Bull. That's why we're here. It's what we do best. |
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