VIEWS: 355 PAGES: 2 CATEGORY: Tax POSTED ON: 7/22/2009
Unfortunately, the IRS has the right to levy your wages and accounts. Find out everything you need to know about levies and how to get them released from a veteran tax attorney.
Tampa Tax Lawyer Discusses the Fundamentals of Federal Tax Levy Wage levies and bank account levies are the most commonly used tax collection procedures. When any of these is enforced on you, it means that you have a serious problem with the IRS. The IRS has the right to levy or garnish your wages when you owe them a certain amount of money. They may also garnish retirement income, social security benefits and any bonuses that you earn. It is important to keep in mind that the IRS is not the same as other creditors as the former can immediately garnish your wages without having to sue you. All they have to do is send a notification to your employer and the latter is then obligated to transfer a certain amount of your salary to them instead of you. A wage levy release or the full settlement of your dues puts an end to a wage garnishment. The IRS can actually go after your clients if you are an independent contractor or self-employed and require them to pay a certain amount on your behalf. Although you will still receive something from them, this amount is significantly less than the amount that you could have earned. Questions and clarifications about this issue can be addressed by referring to the IRS Publication 1494. The second method, a bank account levy, authorizes the IRS to take all the money in any of your bank accounts. Because this is a government order, the banks will comply with this notice and it would be useless to argue with them. However, only funds present in your bank account on the day the levy is received will be wired to the IRS. For example, a levy obtained on a Tuesday will not affect new funds credited on a Friday. Funds from Wednesday to Friday can only be garnished if another levy is issued. The law provides you with up to 21 days to convince the IRS to discharge the bank account levy. However, if a levy release cannot be obtained within the prescribed period, the bank can then send the funds to the IRS. Ideally, the amount that should be transferred to the IRS should be the same as the amount owed, but if repeated tax levies are issued, then larger sums of money maybe collected. Wage and bank account levies are just few of the collection methods utilized by the IRS. If worse comes to worse, they can also levy your personal belongings like jewelry, house, insurance policies and collectables. Therefore, be sure to promptly pay all your taxes so the IRS will not impose a tax levy on your income and your belongings. This article clearly established the fact that a Federal tax levy is serious matter in all its aspects. Hence, before the government imposes more threatening collection methods, the likes of tax levies, taxpayers owing the IRS amounts of money must settle these dues now. Darrin T. Mish is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel's Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He also spends a great deal of time traveling the nation providing training to attorneys, CPAs and Enrolled Agents on how to handle their toughest cases with the IRS. If you would like more information about his services please visit http://getirshelp.com.
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