We have helped to release IRS levies, garnishments and liens for taxpayers from all over the country. No matter where you live, we can help! Troubled taxpayers with all sorts of issues come here for assistance, most of which take just a few days to resolve. Regardless of what your IRS problem, call us to find out what can be done. You may also learn more about how we can help you by choosing a selection below.
Bank Levy Release
An IRS bank levy is a severe IRS collection action taken to repay back taxes an individual or company owes. This sort of action is not the first attempt to collect by the IRS, but it gets your attention pretty fast. The way it works is the IRS will notify your bank (without informing you first) that the total available cash balances you have in all of your accounts as of that day are frozen for 21 days. If you do not make arrangements with the IRS to get a Bank Levy Release, then your bank is obligated to send that money to the IRS after the 21st day, so you lose it all.
Wage Levy Release
An IRS wage levy, also known as a wage garnishment, is a penalty from the IRS designed to repay back taxes an individual owes. Since this affects your paycheck, it will most likely get your attention right away. The way it works is the IRS notifies your employer (without informing you first) that all of your paychecks are to be frozen (minus what they legally must leave you out of each paycheck for “ordinary and necessary living expenses”) until your total tax debt is paid off. If arrangements are not made with the IRS to get a Wage Levy Release or a Wage Garnishment Release, then your employer is obligated to send that money to the IRS immediately after each payday.
Installment Agreement (IA)
An IRS installment agreement is a payment plan by which the IRS allows you to repay your entire tax debt in affordable (this is by the IRS definition of ‘affordable” and not your own personal definition) monthly payments. The amount is mutually agreed upon and is usually enough to pay off the accrued monthly interest on the debt plus something against the principal balance. Interest continues to accrue on the unpaid balance of your tax debt, so a speedy resolution is the best course of action.
A federal tax lien gives the IRS a legal claim to all of a taxpayer’s property in the amount of the total tax liability. The federal tax lien arises after the tax debt has been determined, a demand made for its payment has been sent to the taxpayer’s last known address, and the taxpayer does not pay it. Many people have IRS liens that have been filed at their county courthouses as the lien must be filed in the county in which the assets are found. In addition to being filed with the county courthouse, the lien will be reported to the credit reporting bureaus, like TransUnion, Equifax, and Experian.
Currently Non Collectible Status (CNC)
A “Currently-Not-Collectible” (CNC) status with the IRS is applied to taxpayer accounts that have been determined to not be able to afford to pay back the tax debt through voluntary or enforced means and meet his or her minimum monthly living expenses. Once a tax debt is accrued, the IRS will attempt to collect the balance owed through its notice process and by contacting the taxpayer directly. If these attempts fail, then the IRS will begin enforced collection actions, such as levies, garnishments, and liens. If at any point during this process the taxpayer can demonstrate that the payment of the back taxes, either through voluntary or enforced means, would create an “economic hardship”, then the IRS will place the taxpayer’s account in “CNC” status. It is important to understand that what the taxpayer may view as a hardship, the IRS may view as just an economic or personal inconvenience.
Federal Tax Extension
Federal tax returns are due on April 15 annually or the first business day thereafter. However, the IRS does grant taxpayers an automatic six-month extension to file taxes as long as an extension form is mailed to IRS before the original filing date. Keep in mind that this will be an extension of time to file but not an extension of time to pay, so even if you obtain an extension to file, you must still pay your income tax debt in full by April 15.
Substitute For Return (SFR)
If a taxpayer fails to file a federal tax return, then the IRS will send a reminder to file the return in question. If there is no response, then the IRS will eventually prepare a Substitute For Return (SFR) using wage and other income information, such as W-2 and 1099 income, reported to the IRS in that particular tax year. The SFR is designed to calculate maximum tax liability, so the IRS will not take into consideration marital status, dependents, deductions or credits that could otherwise lower your taxes. As a result, you could end up owing substantially more taxes based on the SFR than if you filed your own tax return.
In addition to the services outlined above, we offer the following tax services:
IRS Levy Release Package
We offer free downloads of various forms that you will need in order to complete a number of filings. Everything from a Client Information Sheet to a Power of Attorney (Form 2848) is available here to help you gain your freedom from federal tax debt.
Offer In Compromise Coaching (OIC – Form 656)
We no longer directly prepare and manage Offers In Compromise, however, we do provide OIC coaching services.
We offer income tax preparation to all of our clients that have sought our services for levy, lien, and garnishment releases. If you have not contacted us for one of these services, then we will consider taking you on for tax preparation only if we are available to do so.