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How to A Stop Wage Garnishment or Wage Levy with IRS – Wage Garnishment Tax Help

Sometimes the IRS uses wage garnishment to settle tax debts. If back taxes haven’t been paid despite having received several warnings, the IRS can take a portion of your wages to settle these debts.

The process for wage garnishments is quite elaborate. First, the IRS sends a notice that details the amount owed, including penalties, interest, and a due date. If this notice is ignored, a final warning called the ‘Final Notice of Intent of Levy’ will be sent. Thirty days from that point, the IRS can initiate the wage garnishment process.

IRS Wage Garnishment

A notice is then sent to your employer, who is thereby made aware of your back tax problem and required to give the IRS a portion of your wages. Wage garnishments are a severe type of tax levy, which can negatively affect your livelihood. If you’re living pay check to pay check, wage garnishment could cause problems with paying other important bills.

While the IRS has a limit on how much it can garnish, it is possible that incorrectly filled forms from your employers could result in garnishments in upwards of 75% of your pay check. Unfortunate situations like this should be immediately addressed.

Some of the best ways to reduce wage garnishments include:

Wage garnishments can be released using an installment payment plan. If there have been no previous tax offenses, another form of release from wage garnishment includes cases of extreme financial hardship.

Wage garnishments are not to be taken lightly. Obtain the service of a certified tax professional for reprieve if you find yourself dealing with tax problems such as wage garnishment.

IRS Wage Garnishment Tax Relief

The experts at Long Island Tax Resolution will thoroughly examine your case. We will work diligently to remove your wage garnishment in whole or in part. We will work with the IRS to reduce the garnishment of your wages, file outstanding tax returns, and setup an installment payment plan to settle your debts in the most painless way possible.

Contact us to learn more about how we can help reduce your wage garnishment!

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How to Stop A Bank Levy or Tax Levy with IRS Tax Help

Non-payment of income taxes or failing to make arrangements to settle IRS tax debts gives the IRS the power to seize any type of property or money from your accounts. This power does not require a court’s permission. It is called a tax levy or, more specifically, a bank levy, which occurs when funds are taken directly from your bank accounts.

IRS Bank Levy

A bank levy is the most powerful tool in the IRS arsenal, and it is used when the following conditions are met:

  • After due assessment by the IRS, you receive a notice and demand for payment of tax.
  • You either refuse or neglect to pay the tax.
  • You receive a ‘Final Notice of Intent to Levy and Notice of Your Right to a Hearing.’

A bank levy is a serious matter. Under bank levies, the IRS can:

  • Garnish your wages
  • Seize your property and assets
  • Acquire insurance earnings
  • Acquire rental incomes
  • Acquire retirement account funds

There are different types of account levies. A ‘one shot’ levy is when the bank takes the total amount owed and sends it to the IRS. A ‘continuous’ levy, like wage garnishments, deducts money from your account regularly. As you can see, levies can be detrimental to your financial situation and livelihood.

Luckily, the IRS has a provision to release the levy and establish a repayment plan according to your specific financial situation, but it can be difficult to initiate the process. A certified and experienced tax professional will ensure you secure the best tax levy relief.

Our highly professional tax experts will help you file the appropriate paperwork to lift the IRS bank levy as soon as possible. Our team offers affordable strategies to solve tax resolution problems.

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How To Stop An IRS Bank Levy!

What Is an IRS Bank Levy?    

The IRS uses the bank levy as one of it’s tools to collect back taxes owed. It is the preferred IRS tax levy method because they can get large amounts of unpaid taxes easily. The IRS simultaneously lets the taxpayer and the taxpayer’s bank know of their intent to carry out a levy. The IRS will levy the following types of bank accounts: checking, savings, money market and certificates of deposit. The IRS wants the taxpayer to respond within 21 days. If the taxpayer does not respond, the IRS will ask the bank to release the levied funds. The IRS can follow up with more levies until they get the full tax debt amount.

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The 5 Steps Leading To an IRS Bank Levy!

The IRS has 5 steps that it takes before levying a taxpayer’s bank account:

  1. The IRS discovers the taxpayer owes back taxes.
  2. The IRS then issues a series of notices demanding payment for the tax amount.
  3. If the taxpayer ignores the deadlines of the first series of notices, the IRS then sends a Final Notice of Intent to Levy. The taxpayer then has 30 days to respond.
  4. If the taxpayer ignores the Final Notice of Intent to Levy, the IRS then assesses the taxpayer’s finances. They contact the taxpayer’s bank to discover if there are funds available to satisfy all or part of the tax debt.
  5. The IRS issues the bank levy if enough funds are in the taxpayer’s account.

The IRS examines the taxpayer’s employment if enough funds are not in the taxpayer’s bank account. They will consider using a wage garnishment, an alternate form of tax levy.

How to Stop an IRS Bank Levy!

Once the IRS launches a bank levy, it is important to act quickly. The IRS prefers to work with the taxpayer to help resolve the tax problem. The taxpayer needs to be aware of suitable solutions. First, file any unfiled tax returns. Next consider solutions such as an installment agreement, offer in compromise or full and immediate payment of back taxes. The tax payer can also appeal the bank levy. The full title of the final notice reads “Final Notice of Intent to Levy and Notice of Your Right to a Hearing“.

We recommend working with a tax resolution specialist to solve any tax problems such as a bank levy. The IRS will view this step as a serious try by the taxpayer to resolve the tax problem. Also, an expert has the experience necessary to help the taxpayer choose the right solution for their specific tax problem.