Call Impact Tax Resolution Immediately if you are facing a Bank Levy, Wage Levy, or Accounts Receivable Levy!
First things First
The IRS must follow the required procedures before they can levy your assets. If you did not receive the following required notices then you should immediately take action that the IRS levy not be enforced.
- Notice and demand
- Notice of intent to levy
- Notice of a right to a Collection Due Process hearing
The IRS has the responsibility to correctly handle notices. They must be given in person, left at a taxpayer’s home or business, or mailed to the taxpayer’s last known address by registered or certified mail. It is part of the ITR process to insure that the IRS is following their own procedures to protect taxpayers.
Keep this in mind. If the IRS can find you to serve a levy and take your assets, why did the IRS fail to find you in order to send proper notice that is required before they can levy to take your assets? That may be something that needs to be addressed immediately.
There are many different types of levies the IRS can enforce. The following are common:
If you have received a bank levy, the bank will usually hold levied funds for 21 days in a separate account, before sending it to the IRS. If you contact ITR, we will work to resolve your levy issue before your money is sent away.
Understand that bank levies can only secure the funds that are in your account at the time the levy hits your bank. They are not continuous.
Example: If you only had $100.00 in your account at the time the levy hits your bank and the levy was issued for $200.00. Then after 21 days your bank would send the IRS $100.00. The IRS will have to issue another levy in order to collect any other funds from your account.
It will be important to move quickly in order to keep your funds in your account.
The IRS can enforce a wage levy on salary, and other income, which includes payments for personal services in a work relationship.
The difference between a bank levy and a wage levy is that wage levies have a continuous effect. Meaning the levy attaches itself to future income until the levy is released. NSWS is very effective in getting wage levies released with in days a of taxpayers initial contact.
Accounts Receivable Levy
Accounts receivable levies can be very damaging for any type of practice or firm. The IRS can levy pretty much any receivable owed to a taxpayer. Accounts receivables are assets representing money due to a taxpayer for products and services.
Receivables can include monies owed to the taxpayer by notes or other debts receivable, client’s, customers, patients, insurance companies, rental income, funds processed by credit card companies, etc.
The list does not end there. In special cases the IRS can levy social security payments, retirement income, funds in pensions or retirement plans, insurance, stocks, bonds, mutual funds, inheritances, single member/owner LLC’s, etc.
- A Levy should be released under the following circumstances.
- If the levy is causing an economic hardship.
- If the taxpayer enters in to an Installment Agreement.
- If the taxpayer enters in to an Offer in Compromise.
- An erroneous levy is one that is served in violation of an administrative procedure or law. If the IRS did not follow correct procedure and issued a levy prematurely then it is in error and should be released immediately.
- If you make a credit card payment.
- Appeal Request and Collection Due Process Request.
Call ITR if you are worried about any type of levy. We will first listen to your circumstances and then take immediate action to help you. We understand that your rent, mortgage, food, electricity and living expenses do not all of a sudden stop when the IRS comes calling.
Should you have any questions concerning this policy please feel free to contact us.