Owe Back Taxes
Our staff includes Board Certified Tax Attorneys, Certified Public Accountants, Former IRS Agents, Managers and Enrolled Agents that can resolve your back tax issue and problems today.
Over 25 million taxpayers owe back taxes to the Internal Revenue Service. Call us today to discuss any of the options to settling back taxes.
It is imperative to act on any and all IRS notices that you receive. Contacting a professional firm will provide you with significantly better results.
The IRS has a number of tax programs to help you deal with your situation. All these programs are based on your current financial situation. As you read below you will find out the best way to resolve your tax problem on your back taxes.
IRS Enforcement Tools.
IRS files over 3.8 million tax levies and files over 900,000 tax liens each year.
If you fail to act on your final IRS notice the following enforcement actions will follow. IRS will:
1. File a Bank Levy which completely seizes all money out of your bank account
2. File a Wage Garnishment or Wage Levy which is a continuous levy on your wages
3. File a Federal Tax Lien
IRS files over 3.8 million tax levies and files over 900,000 tax liens each year. If you fail to act on a IRS Final Notice and Right to Hearing you can expect the IRS to use enforcement action to collect back taxes that you owe.
This is the final notice the IRS sends before seizure:
Final Notice
Notice Of Intent To Levy And Notice Of Your Right To A Hearing
Please Respond Immediately
We previously asked you to pay the federal tax shown on the next page, but we haven’t received your payment. This letter is your notice of our intent to levy under Internal Revenue Code (IRC) Section 6331 and your right to appeal under IRC Section 6330.
We may also file a Notice of Federal Tax Lien at any time to protect the government’s interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien.
If you don’t pay the amount you owe, make alternative arrangements to pay, or request an appeals hearing within 30 days from the date of this letter, we may take your property, or rights to property. Property includes real estate, automobiles, business assets, bank accounts, wages, commissions, social security benefits, and other income. We’ve enclosed Publication 594, which has more information about our collection process; Publication 1660, which explains your appeal rights; and Form 12153, which you can use to request a Collection Due Process hearing with our Appeals Office. To preserve your right to contest Appeals’ decision in the U.S. Tax Court, you must complete, sign, and return Form 12153 within 30 days from the date of this letter.
How we resolve your IRS problem on your back taxes owed.
AZ Tax Agents will settle and negotiate your case with the Internal Revenue Service using the following steps:
1. We will immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS. We handle all IRS tax negotiations and settlements.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax IRS transcripts, file and prepare your tax returns within days, even if you lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A or 433F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
5. There are five different settlements techniques on back taxes, the list below are the ways IRS will close your case off of the IRS enforcement computer.
IRS settlement options
1. Hardship Settlements. The inability to pay your taxes at the current time. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently non collectible. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. IRS will require a detailed financial statement with supporting documentation to support your hardship condition on your back taxes.
2. Payment Agreements, Installment Agreements or Payment Plans – Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required. Depending on the dollar amounts IRS has programs fitting all needs on back taxes.
3. IRS Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
A. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
B. Doubt to Liability – The IRS incorrectly set up a tax liability again you.
C. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
4. The Filing of a Bankruptcy – Yes taxes can be discharged in a Bankruptcy proceeding. There are some basic rules in order to have your taxes discharged.
The general rules that govern dischargeability are:
a. the taxes must be three years or older
b. the return(s) must be filed for at least two years
c. the returns must be assessed for at least 240 days
5. The running of a statute of limitations.
Each taxpayer’s case is very different and many different events could have occurred during the statute period. As a general rule, the statute of limitation period is ten years from the date of assessment. It is best to have a true tax professional pull a transcript and conduct a detailed research to determine the correct statute period.
IRS policies can be complicated and burdensome, but with the proper knowledge, these policies can be easily navigated. If you owe back taxes to the IRS call us today for a free tax consultation.
Negotiate Offer in Compromise/Tax Debt Settlements
5 Facts about the Offer in Compromise Settlements
1. The average Offer in Compromise Settlement takes between 6- 9 months to work by the IRS,
2. The average Offer in Comprise settlement is 14 cents on a dollar,
3. 38% of all offers in compromise are accepted by the IRS,
4. All accepted Offers in Compromise Settlements are a matter of Public record,
5. The average time it take the IRS to work an Offer in Compromise is between 10 – 20 hours.
IRS Payment Plans
Over 6 million taxpayers enter into IRS payment plans, installment agreements or monthly payments each and every year in back taxes.
Taxpayers must complete and fully document IRS form 433F that you can find directly on our website to get in IRS payment plan.
The Internal Revenue Service will take a close look at your income and your expenses and will compare those to the national standards found in your region that you live in.
It is extremely important to hire a tax professional who knows the system to get an IRS payment plan that is both fair to you in the Internal Revenue Service.
Taxpayers are unrepresented will find that the IRS will want more than you are willing to pay. Do not be bullied by the IRS.
The Offer in Compromise Settlement Program
The new Fresh Start Program offered by the IRS is making life simple for those who qualify for an Offer in Compromise Settlement however a professional tax company has a much better chance of getting Offers in Compromise accepted because they understand the guidelines the Internal Revenue Service has set forth.
The filing of an Offer in Compromise Settlement and settling back taxes is much more than filling out the paperwork and submitting it to the IRS.
Our experience staff has former IRS agents who have worked the Offer in Compromise (OIC) program while at the IRS.
They have the knowledge necessary to get Offers in Compromise through the system if you qualify for the program.
Before an Offer in Compromise is filed, all the facts and your current financial statement need to be reviewed.
Before you spend any money or waste your time, let our staff walk you through the process. We have been processing Offers in Compromise for a combined 60 years just with the IRS alone.
There is a New Pre-Qualifier Tool on our Website
To crack down on the amount of offers in compromise that are filed, the IRS has put out a new pre-qualifer tool to make sure that taxpayers are qualified and suitable candidate so they do not waste their time and money filing an offer compromise that has no chance of being accepted.
You can look at our homepage, click on IRS forms, and click on the pre-qualifier tool and you can walk through the information yourself to see if you qualify for offer compromise.
You should not give your money to any firm or tax professional unless you’re a truly qualified candidate for an offer in compromise
The Offer In Compromise Settlement
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the tax liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC:
1. the taxpayer must have filed all tax returns,
2. made all required estimated tax payments for the current year, and
3. made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.
The IRS will not accept an OIC Settlement unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential. The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
The IRS may accept an Offer in Compromise Settlement based on three grounds.
1. Doubt as to Liability.
Acceptance is permitted if there is doubt as to liability.
This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.
2. Doubt to Collectability.
Acceptance is permitted if there is doubt that the amount owed is fully collectible.
This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.
3. Effective Tax Administration.
Acceptance is permitted based on effective tax administration.
An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances. The acceptance of these offers are very difficult to get accepted.
Submission of the Offer in Compromise Settlement
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of:
- Form 656 (PDF), Offer in Compromise, and
- also submit Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals,
- and/or Form 433-B (OIC) (PDF), Collection Information Statement for Businesses. A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).
Application Fee for the Offer in Compromise Settlement
A taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
1. No application fee is required if the OIC is based on doubt as to liability.
2. The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Selecting your Offer in Compromise Settlement Terms
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A Lump Sum Offer Settlement
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted. If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic Payment Offer in Compromise Settlement
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted. When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer. Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer.
These amounts are also nonrefundable. These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The Statutory Period of Time Rule
Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws.
If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default.
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties.
Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
If IRS rejects the Offer in Compromise Settlement
If the IRS rejects an OIC, then the taxpayer will be notified by mail.
The rejection letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
The New Fresh Start Program by the IRS – Offers in Compromise Settlement (OIC)
The Offer in Compromise program permits qualified taxpayers with outstanding and unpaid tax liabilities to negotiate a full settlement for an amount that is less than the tax owed.
An OIC agreement generally will not be accepted by the IRS if it believes that the outstanding liability can be paid through a lump sum or other type of payment arrangement.
The IRS typically reviews the taxpayers’ income, expenses, assets and liabilities in great detail to make a determination regarding the taxpayers’ ability to pay.
In an effort to expand this program to a greater number of struggling taxpayers, the IRS has become more flexible in what it deems “ordinary and necessary” expenses in arriving at a taxpayer’s net monthly income.
Specifically, under the “Fresh Start Program,” the IRS has expanded the Allowable Living Expense Category to include additional expenses, such as credit card payments and bank fees, while increasing the total amount allowable.
The program also allows expenses for the repayment of student loans and delinquent state and local taxes. IRS has really tried to help the struggling taxpayer.
The most significant change to the OIC program under the “Fresh Start” initiative is the change in the calculation of the taxpayer’s “reasonable collection potential” under the future income component.
The “reasonable collection potential” (RCP ) is determined by analyzing the taxpayer’s net realizable equity in assets and future income.
The IRS now considers only one year of future income for offers that will be paid in full within five months when previously they considered four years of income.This is a huge change because the multiplier was such a huge number and scores of taxpayers could never pay off the offer.
The IRS will now consider two years of future income for offers paid in full within six to 24 months, down from five years of income.
For taxpayers whose reasonable collection potential is driven by future income and less by net realizable equity in assets, this change is likely to have a meaningful impact in the determination of whether they qualify for an OIC.
The overall result of these changes and improvements is that increasingly more financially troubled taxpayers will qualify for OIC relief.
Some Negative Implications
Apart from these favorable changes, there may still be negative implications of filing an OIC.
A potentially negative repercussion is that information provided through the OIC would provide the IRS with a financial road map for seizure and enforced collection action in the event the offer is rejected or withdrawn or the taxpayer defaults on the offer.
As a former IRS agent myself, any offer I received gave me a direct avenue to collect the tax if I rejected the offer and I had every potential collection tool available for me based on the current financial statement provided to me by the taxpayer.so use caution.
What IRS will check if you submit an Offer in Compromise
Be fully apprised the IRS will conduct a:
- Full Google Search,
- Get a copy of your credit reports,
- Check the Accuriant Search Engines,
- Pull licenses searches,
- May also use Lexis Nexis
Noteworthy – Submission of an Offer in Compromise will automatically extend the statute of limitations for collection during the duration of the offer, plus 30 days, which will give the IRS more time to try to collect the full balance owed.
We will provide straightforward answers to questions about an Offer in Compromise.
- Does an Offer in Compromise apply to me?
- How much can I settle my tax debt for with the IRS?
- What are my Offer in Compromise payment options?
- What factors affect the settlement outcome with an Offer in Compromise?
A Footnote
The IRS is not bound by either the offer amount or the terms proposed by the taxpayer. The OIC investigator may negotiate a different offer amount and terms, when appropriate. The investigator may determine that the proposed offer amount is too low or the payment terms are too protracted to recommend acceptance.
Am I Eligible For An Offer In Compromise?
Important items to know about an Offer in Compromise:
- You must be compliant for two consecutive quarters (six months) before an offer can be submitted.
- The advantage of an OIC is that the amount you pay is considerably less than what is actually owed. All principal and interest stops accruing and most of the time enforced collection is suspended.
- One of the rules for the OIC is that you must remain current and compliant for five years after acceptance.
Stop IRS Bank Account Levy
Has the IRS placed a Tax Levy on your Bank Account or filed a Wage Garnishment?
Get your levy released and your case settled at the same time! We know the system.
IRS Levy
IRS will levy taxes and enforce the tax laws by filing a Notice of Levy on your Bank Account, 688 A, and or on your Wages, 668 W if you fail to follow-up on form 1058 which is the last notice or letter IRS will send before this federal action takes place.
As former IRS agents we have filed thousands of tax levies and we know how to immediately get those tax levies released. We know how to get immediate relief
We worked in the local, district and regional offices of the IRS and taught Tax Law.
How we can immediately get Notices of Bank Levy and Wage Garnishment Released.
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage Levy Garnishments and Bank Levies. We know exactly how to quickly get them released.
The process of getting your levy released:
1. We immediately send a power of attorney to the IRS letting them know we are now your representative. You will never have to speak to the Internal Revenue Service.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS can and many times will refuse to work your case. This is leverage that the IRS will use to get you compliant with the tax law.
We will pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records. We are experts in tax reconstruction.
3. The IRS requires a current financial statement. We will secure a required 433-F (IRS financial statement) or 433A, will verify the income and expenses and work out a settlement agreement.
The IRS will always require a closing settlement method for each case.
4. We will review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.You will get the very best deal allowed by tax law.
IRS Tax Settlement Agreements can be in different forms:
a. Hardship Settlements or Current Non Collectable.
Cases usually go into a 3 year suspended status because of an inability to pay or hardship. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship. The National Standards are found on our website.
b. Payment Agreements.
Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. Offer in Compromise. ( Tax Settlements )
There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectability.
Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability of the taxes.
A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration Exceptional Circumstances.
There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider a OIC.
To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
Employer Threatens to Fire Taxpayer Because of a Levy
Sometimes an employer threatens to fire an employee to avoid handling a levy. This might be a violation of 15 USC 1674.
If the employer fires the taxpayer because of this, the employer might be fined not more than $1000 or imprisoned for not more than one year, or both.
Refer the taxpayer to the Wage and Hour Division of the Department of Labor (DOL). DOL, not IRS, must decide if the employer violated the law.
Stop being bullied by the IRS. If the IRS has levied taxes call us today for immediate tax relief and get your levy released.
IRS Levy Release – Tax Consultants
RS Levy Release NOW- Tax Consultants – Tax Attorneys, Former IRS Agents – Fast Levy Release
Stop the worry today. You will never have to talk to the IRS. We can not only get your IRS Levy Released we can also settle your back taxes.
Have some of the very best tax consultants on your side.
We are Former IRS Agents that taught Tax Law at the IRS. We know all the tax techniques and tax policies and can get your IRS Levy Released, usually within one week.
If anyone tells you they can get it released sooner, they would be scam artists, so beware.
We have over 206 years of total tax experience and over 60 years of working directly for the IRS in the local, district and regional offices of the IRS. We are composed of Tax Attorneys, CPA’s and Former IRS agents.
Being Former IRS Agents we are now working on your side. We know all the techniques and tax policies that can get you immediate tax relief.
If the IRS has sent a Notice of Levy on your bank account or on your wages simply by calling our firm we can usually get those levies released before the IRS takes your money. Our tax consults are quick, affordable and assessable.
How we can immediately get Notices of Bank Levy and Wage Garnishment Released?
As former IRS Agents, Managers and Instructors we have issued thousands of IRS Wage Garnishment and Bank Levies. We know exactly how to quickly get them released.
We have the inside knowledge to get the job done.
The process of Releasing the IRS Tax Levy:
1. As your tax consultants we will immediately send a power of attorney to the IRS letting them know we are now your tax representative and tax consultant. You will never have to speak to them. We handle all correspondence.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records. We can reconstruct tax records if necessary.
3. The IRS requires fully documented current financial statement. We will secure the required 433A or 433F (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
5. IRS settlement closing methods are usually Hardship, Payment Agreements and the filing of the Offer in Compromise.
6. Our tax consultants can get your money back in your hands before IRS has the chance to take it.
It is important to know when the IRS issues you a bank levy, the bank freezes that money for 21 days. If you contact us soon enough we definitely have time to release your levy.
If the IRS garnishes your wages, IRS cannot take the money until your next payday.
The sooner you contact our tax consultants the sooner you will get your IRS Release of Levy.
Affordable IRS Levy Releases NOW + IRS Tax Consultants, Tax Specialists
IRS Levy – Get Your Social Security Benefits Released
Call us today to get immediate releases of levy on your social security benefits. The IRS is not looking to levy on social security benefits, this is a last resort and usually happens because of a lack of communication between the taxpayer and the IRS. If IRS has levied your Social Security Benefit we can help you right now.
We are composed of Board Certified Tax Attorneys, CPA’s and Former IRS Agents, Managers and Instructors. We have over 205 years of professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices of the IRS.
We can easily negotiate a release of your Social Security Benefits and work out a tax settlement with the Internal Revenue Service.
The IRS Right to Levy On Social Security Benefits
Internal Revenue Code section 6331(h) allows the IRS to take (levy) up to 15% of your Social Security benefits to pay your overdue taxes. In some cases they can take 100% of the social security benefit.
The Levy Process on Social Security Benefits
Before any Tax Levy goes out the IRS always sends a series of tax notices and letters indicating that money is owed. The IRS generally sends a series of 4 notices to each taxpayer. If you receive these notices, first make sure you owe the tax.
If you do, you must respond to the IRS tax notice. Failure to do so will result in a tax levy on any income sources including Social Security Benefits.
You will always receive a Final Notice before a Levy on Social Security Benefits
Before IRS can actually levy your social security benefits the IRS must send you a final notice and a right to a hearing. This is your final chance to settle or resolve the matter before the Notice of Levy is issued on your social security benefits.
If you are going to ask for a Collection Due Process Hearing and appeal the tax notice, make sure you file for the hearing timely and send it by certified mail.
There are Two different types of Levies on Social Security Benefits.
There are two types of levies on social security benefits. The Automated and the Manual. There is a huge difference between them:
1. The Automated ASC Levy.
This tax levy is generated out of the IRS Automated Collection System Computer.
These notices are all systematically generated and untouched by human hands. These represent about 98% of all tax levies.
If you have not responded to the IRS Final Notice the IRS will check there CADE system and internal sources for income being received by the taxpayer. If the IRS finds you are receiving entitlements from social security, the IRS will forward a tax levy to the social security administration and continuously receive portions of your monthly benefit until you call the IRS and settle your case.
Pursuant to section 6331(h) of the Internal Revenue Code, the IRS can take 15% of a your social security benefit each month.
The automated social security levy is one of the most used IRS collection enforcement tools. It is simple and provides immediate results.
It also causes the most financial hardship to all taxpayers. In 2010, the Internal Revenue Service received $2.46 million in payments from automated levies on social security benefits. The IRS sent out over 3.8 million levies in tax year 2011.
2. The Manual Tax Levy.
This is normally a situation where a local Revenue Officer is assigned your case. By law, the Internal Revenue Service is not limited by IRC 6331(h) to taking only 15% of a your Social Security Benefits.
Under Internal Revenue Code section 6331(a). The IRS can and will issue a manual levy that can take all of the social security benefits.
3. Exemptions on a manual levy.
The IRS publishes a table for the amounts that can be claimed as tax exempt. A single taxpayer getting a monthly social security benefit can currently claim $779.17 as exempt from a manual levy. This means that the IRS, although it can make a manual levy, will only get amounts over $779.17. Social Security Benefits Eligible for the Federal Payment Levy Program
However, benefit payments, such as lump sum death benefits and benefits paid to children, are not included in the FPLP. Additionally, Supplemental Security Income (SSI) payments, under Title XVI, and payments with partial withholding to repay a debt owed to Social Security are not levied through the FPLP.
Beginning February 2011, the FPLP may exclude certain delinquent taxpayers who receive social security payments if their income falls at or below certain established levels, based on the Department of Health and Human Services poverty guidelines.
IRS Final Notice of Intent to Levy
The IRS sends out approximately 4 million bank levies and wage garnishments each year. If the letter you have just received is not responded to, the Internal Revenue Service will follow-up with enforcement action.
They will proceed within two weeks after the 30th day of your letter by seizing your wages and/or your bank account.
Call us today and we can stop the IRS levy right away. You will never have to speak them.
Whatever you do, be assertive with the Internal Revenue Service in handling your problem because the problem will not go away by itself.
You will have the benefit of:
- Our staff has over 205 years of professional IRS tax representation experience collectively
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- Former IRS Managers, Instructors, and Trainers
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed to practice in all 50 States
- Certified by the Internal Revenue Service
- Nationally Recognized Veteran Former IRS Agent
- Nationally Recognized Published Tax Expert
- As heard on 90.3 FM Monthly Radio Show-Business Weekly
How we handle your IRS case to get you immediate tax relief/help and permanently end your IRS Tax Problem
- We obtain all the information from our clients and get an accurate description of the problem.
- We immediately send a power of attorney to the IRS so you never have to speak to them.
- We immediately have the IRS stop all of their enforcement action with that first call.
- We make sure the tax liability is correct by pulling tax transcripts and documents from the IRS’ computer.
- We file any returns that the IRS needs to get you current. All tax returns must be filed before the IRS will consider any agreements.
- We make sure your case is settled for the lowest possible amount allowed by law by going over all the different options that are available to you.
Some Frequently Asked Questions
What happens if I don’t pay or contact the IRS?
If you don’t pay the amount due, they may seize (“levy”) any state tax refund to which you’re entitled. This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).
If you still have an outstanding balance after they seize (“levy”) your state tax refund, they may send you a notice giving you a right to a hearing before the IRS Office of Appeals, if you have not already received such a notice. The IRS may then seize (“levy”) or take possession of your other property or your rights to the property.
Property includes:
- Wages, real estate commissions, and other income
- Bank accounts
- Business assets
- Personal assets (including your car and home)
- Social Security benefits
If you don’t pay the amount due or call the IRS to make payment arrangements, they can file a Notice of Federal Tax Lien on your property at any time, if they haven’t already done so.
If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.
What if I don’t agree or have already taken corrective action?
If you do not agree with this notice, contact the IRS immediately at the number printed at the top of the notice. They will do their best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call them at the number printed at the top of the notice to make sure your account reflects this.
Remember, you can always appeal your case.