Levies and Garnishments
What is a Levy?
The IRS uses Levies as a last resort in collecting monies due. In a Levy, the IRS seizes some of your property, such as
wages
bank account contents
social security payments
cars
houses
other assets
Why a Levy?
The following steps lead to a Levy by the IRS:
- The IRS sends a “Notice and Demand for Payment” letter: you owe money.
- The IRS does not receive the payment / taxpayer ignores the IRS.
- The IRS sends a “Final Notice of Intent to Levy” letter and a “Notice of Your Right to a Hearing” letter.
- The IRS receives no response.
It is important to act quickly as soon as you receive a “Final Notice of Intent to Levy.” Contact us to find out what to do.
How to get Levies Released?
The IRS wants the taxpayer to make an honest effort to comply. It is of utmost importance to be compliant with current taxes when trying to fix past amounts due.
File current tax return or extension
File all prior tax returns that are not yet filed
Provide proof of current adequate withholding / estimated tax payments
For taxpayers that are employers: make sure all current year’s forms 941 are filed and taxes paid up to date
Be ready to present to the IRS a viable plan for how to pay, or alternatives to collection
Contact us for help with getting into compliance and having your Levy / Garnishment released.
Time is of the Essence
The faster you act, the better. After a Final Notice of Intent to Levy, you have less than a month to get your case out of Collections and into Appeals. If you miss the deadline, you may be levied. The bank must remit your money to the IRS after 21 days. Your employer will do it with the next paycheck. This is the time frame you have to reverse the bank levy or wage garnishment.
We can help. Contact us now!