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Tax Levy

Tax Debt Help When the IRS Levies Your Retirement Benefits

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.

If you have a fixed and determinable right to retirement benefits, an IRS tax levy can attach to payments that you will receive in the future, even if you have not begun to receive payments when the IRS issues the levy. Future income is fixed and determinable if it is not contingent on the performance of future services. If a levy is served while you’re receiving retirement payments, the levy applies to those payments as well as future payments.

Many taxpayers owing IRS back taxes have heard that there is a ten-year statute of limitations on collections. This means that once the ten-year period has expired the IRS can no longer collect your unpaid taxes. However, if the IRS issues a levy on your future rights to retirement income in which you have a fixed and determinable benefit within the allowed collection period, the levy continues to be effective for retirement benefits received after the collection statute expiration date. The levy will remain in effect until your back taxes are paid in full. It is IRS policy to limit the levy on Social Security benefits to 15%.

In order to avoid the continuous levy on your retirement income, it is important that you consult a qualified CPA or tax attorney like those at East Coast Tax Consulting Group. We can help you resolve your IRS back taxes today.

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You deserve the best in IRS tax representation, tax preparation, and tax planning services. At East Coast Tax Consulting Group, you’ll work with a licensed CPA who will handle your case from beginning to end. We invite you to contact our team to schedule a free, confidential consultation.