When you’re faced with tax debt that you do not have the ability to pay in full, you should ideally contact the IRS to apprise them of your situation and work out a payment plan. However, if you do not work out payment arrangements with the IRS, or you default on your payment agreement, the IRS may begin to take increasingly hostile collections actions against you.
You’ve filed your tax return with a balance due and are unable to pay and are unsure what you should do next. Well, within a short period of time after receiving your return, the IRS will begin its automated collection process. Here’s how it works.
Several months ago we met with a taxpayer who was subject to an IRS wage levy for 2002 and 2003 back taxes and wanted to know how to stop the wage garnishment.
The IRS will issue a “Final Notice of Intent to Levy and Your Right to a Hearing” to taxpayers who have not resolved their IRS tax problems after receiving a series of notices demanding payment of back taxes.
If you owe the IRS back taxes and have not made arrangements for payment, the IRS will levy your property including your retirement benefits. If the IRS is about to levy your pension, 401K, IRA or Social Security benefits you need tax debt help from the tax professionals at East Coast Tax Consulting Group.
Have you been notified that your bank has received a Notice of Levy-Form 668-A from the IRS and your bank account is frozen. If you owe the IRS back taxes they will issue a tax levy in an attempt to collect unpaid taxes.
Your bank is required to hold the money in your account for 21 days and then send it to the IRS. The 21 day period allows you time to negotiate with the IRS for the removal of the bank levy. The IRS may allow a full or partial release of the bank levy.
A 48-year-old Pennsylvania woman was sentenced March 1 to two years probation for trying to obstruct the administration of IRS law, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania. The woman was also ordered to cooperate with the IRS in all taxes.
The IRS often uses a wage garnishment (levy) as a method to collect unpaid back taxes from you. The levy process begins with the IRS sending your employer Form 668-W, Notice of Levy on Wages and Other Income.
By law, you have the right to a CDP hearing by the IRS Office of Appeals if you receive one of the following notices:
Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
Notice of Jeopardy Levy and Right of Appeal
Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing