IRS Levies

When a taxpayer receives a notice of levy by his/her employer that his/her paycheck has been garnished by the IRS or state, the effects can be devastating to the individuals and their families.  In addition to wages, IRS levies can affect bank accounts and property.  After our firm has been retained by the taxpayer, Taxfirm.com can usually obtain a written release of levy from the IRS within one to five business days, and we will immediately make arrangements to fax or email the official wage release of levy to the taxpayer’s payroll department in order for the employer to stop wage garnishment.

As stated above, the time frame for obtaining an official release of wage garnishment and levies by our firm is typically one to five business days depending on the circumstances regarding the individual’s tax situation.  A common situation that causes delays concerns past due tax returns that have not been filed.  For example, if a taxpayer’s unpaid liability for 2003 is $15,000, and the taxpayer has filed all of his personal returns except for 2004 and 2005, the IRS usually will not consider releasing the wage garnishment until the taxpayer files all past-due returns.  The reason for this is because the IRS wants to set up a payment plan or other financial arrangements for an amount that encompasses all of the taxpayer’s liabilities.

Taxfirm.com can fast track the wage release of levy process by quickly preparing any past-due returns.  If the taxpayer is missing tax information that is needed for the return preparation, our firm can obtain transcripts via the IRS online system.  Obtaining tax transcripts is an extremely useful tool in preparing the past-due returns.

An important consideration for married taxpayers concerns whether the taxpayer should file past-due returns as married filing separately versus married filing jointly.  Because the taxpayer has the legal right to file separately, it may be beneficial to do so, as only one spouse would then be subject to enforced collection, with the other spouse averting tax problems. Taxfirm.com has the expertise to advise our clients of all viable options that may be available to release a wage garnishment.  During our initial intake conference we advise the taxpayers of the following options:

• Installment Agreements (monthly payment plan)
• IRS Not Collectible Status
• Bankruptcy Eligible
• Offer in Compromise
• IRS Collection Statute Limitations

When selecting a firm for IRS Representation, it is advisable to confirm whether the firm is reputable, has the expertise to communicate to you all of your options, and is able to deliver a realistic strategy concerning the unique circumstances surrounding your situation. Contact TaxFirm.com today for more information about IRS levies.