When a person owes back taxes to the IRS, there are many ways that they can complicate that person's life, and one of the most harmful is the levy: a wage levy is the way the Internal Revenue Service directly collects taxes from a person's paychecks when they owe money; a bank levy is when the IRS takes money from the person's checking and/or savings accounts; the IRS can even levy the accounts receivable of a person's business. No matter what type of levy is used, the debtor's employer, bank, or business will be legally forced to comply with the IRS's demands.
Wage Levies do Continuous Damage
Wage levies are registered with the employer and stay in effect until the IRS tells the employer that the levy has been released. Bank levies, on the other hand, have to be performed individually and are often one-time occurrences. The harm that is done to a person's finances by a levy is always significant, but where a bank levy is more of a blow to a person's savings and future financial planning, a wage levy can take a continuous toll on one's ability to pay bills and get by day-to-day. In fact, sometimes wage levies take such a large amount from a person's paycheck that they are not left with enough to handle their living expenses.
The Way Bank Account Levies Work
People work hard to maintain a savings account and keep some available cash in their checking. If the IRS deems it necessary, they can require all of the money in these accounts in order to get the taxes that are owed to them. Once the levy is made, the money in the accounts is frozen for a few weeks while you resolve the dispute. If the levy is not released, the bank has to send the available money--up to the amount of the levy-- to the IRS. The best way to stop the process is by hiring a tax professional to help work to get the levy released.
Getting Tax Help
If a person has received notice of a wage or bank levy, they should get professional help. The IRS may be prepared to settle the debt and release the levy if it can be proved that the action will cause the taxpayer to face undue financial hardship.
Tax professionals are experts in negotiating with the IRS, and are often able to get their clients huge reductions in penalties and back taxes. If the IRS is willing to work out a payment plan, it will include interest and penalties, but will prevent any collection actions on their part (such as an IRS wage levy ).
Tax consultants can help people avoid levies in the first place, as well as assist those that have already been subjected to them. With the right tax help, people that are in trouble can avoid the financial hardship of a levy and get their situations back under control.
Not a Solicitation for Legal Services.
Wage Levies do Continuous Damage
Wage levies are registered with the employer and stay in effect until the IRS tells the employer that the levy has been released. Bank levies, on the other hand, have to be performed individually and are often one-time occurrences. The harm that is done to a person's finances by a levy is always significant, but where a bank levy is more of a blow to a person's savings and future financial planning, a wage levy can take a continuous toll on one's ability to pay bills and get by day-to-day. In fact, sometimes wage levies take such a large amount from a person's paycheck that they are not left with enough to handle their living expenses.
The Way Bank Account Levies Work
People work hard to maintain a savings account and keep some available cash in their checking. If the IRS deems it necessary, they can require all of the money in these accounts in order to get the taxes that are owed to them. Once the levy is made, the money in the accounts is frozen for a few weeks while you resolve the dispute. If the levy is not released, the bank has to send the available money--up to the amount of the levy-- to the IRS. The best way to stop the process is by hiring a tax professional to help work to get the levy released.
Getting Tax Help
If a person has received notice of a wage or bank levy, they should get professional help. The IRS may be prepared to settle the debt and release the levy if it can be proved that the action will cause the taxpayer to face undue financial hardship.
Tax professionals are experts in negotiating with the IRS, and are often able to get their clients huge reductions in penalties and back taxes. If the IRS is willing to work out a payment plan, it will include interest and penalties, but will prevent any collection actions on their part (such as an IRS wage levy ).
Tax consultants can help people avoid levies in the first place, as well as assist those that have already been subjected to them. With the right tax help, people that are in trouble can avoid the financial hardship of a levy and get their situations back under control.
Not a Solicitation for Legal Services.