Levy is bad news for everyone – from the tax payer to the banks and organizations that the tax payer deals with. Hence the #1 tax advice for Sidgo customers is – ‘Avoid Levi at all costs!’. But unfortunately, this is not happening at all times. Tax payers often end up tangled in Bank and Wage Levy issues with IRS, damaging their relationships with their banks, employers or customers. In such cases, Sidago tax services help their customers – who could be tax payers or tax payer associates such as banks, employers or customers in facing Bank and Wage Levy Release and get through them with minimal damage to their financial resources and tax reputation.
What is IRS Levy
Bank and Wage Levy Release are conducted as IRS Levy. A levy is an action taken by the IRS to collect due taxes, which is otherwise difficult. IRS can issue a bank levy to extract money from a bank account owned by the tax payer, or a wage levy to collect your salary/wages or receivables as tax. The person or the company that’s subjected to the levy – which could be a customer, bank or a business organization that the tax payer is working form, needs to comply with the levy order, otherwise they will be subjected to IRS issues on their own. Bank levy is usually valid and active only for the particular day that the levy notice is received by the bank. These are known as ‘one time’ levy. This type of levy doesn’t impact the future funds you deposit with the bank, unless the IRS issues another levy order in the future. After receiving the levy notice, the bank holds the said amount from your count. Even then, the bank doesn’t immediately send the funds to the IRS, instead hold it for a period of 21 days.
Levis take place usually due to poor communication between the IRS and the tax payer. If the tax payer overlooks responding to tax notices sent by IRS, it could end up in a levy.
If you are informed by the IRS that they are going to impose a bank and wage levy release on your income, that is not an idle threat, and it may affect your financial strength substantially. ‘A notice of intent of levy’ is a serious warning by the IRS and should be addressed immediately. They will send a ‘Final notice to of intent to Levy’ and after 30 days of this notice, they can levy your assets. If IRS garnishes the wages, it can leave you with almost nothing, leaving you to bankrupt. However, with the consultancy and help with experienced tax professionals like Sidago, steps can be taken to avoid the levy. As the legal representative of the tax payer, we deal directly with IRS and convince them not to execute the tax levy, or to release it.
Avoiding Bank and Wage Levy Release
IRS turns in to Bank and Wage Levy Release when it believes that the tax payer is not cooperating. However, as a tax payer, you can take precautions to ensure that you do not end up in a levy.
File the tax return with the full tax payment. If that’s not possible, the tax payer needs to submit the IRS Form 9465 – Installment Agreement Request.
Respond to the initial contacts by the IRS, subsequent to the filing of tax return.
Sidago can help you in making sure that your tax files are prepared and sent duly, to ensure a levy is not imposed on your assets.
Garnishment of wages
IRS can order the employer of a tax payer to remit a certain portion of the tax payee’s wage directly to IRS. A levy in the form of Garnishment of wage can be a continuous levy, which means that the levy could apply to future wages, until the debt is fully paid or the IRS releases the levy.
An employer generally has at least one payment period after receiving the levy order, before they send funds from the employee salary to the IRS. Typically, a wage levy leads to damaging the relationship between the employee (tax payer) and the employer, often ending up with a termination of employment.
Bank and Wage Levy Release
Usually IRS releases the bank and wage levy when all the tax debt is paid in full. However, if a levy on your bank account or salary is causing an economic hardship, you can contact the IRS and explain your financial situation. If the IRS finds legit proof that the levy is creating a hardship, they would release the levy, and establish a payment plan to pay the remaining tax debt.
Come to Sidago for Bank and Wage Levy Release
IRS is willing to negotiate with tax professionals like Sidago to undertake Bank and Wage Levy Releases. Working with a tax professional is best way to prevent a levy or get it released by the IRS. Our experts know how to negotiate with the IRS to explain to them the difficult financial position you are being drawn to because of the levy, and negotiate on a reasonable payment plan to release the levy. Sidago tax services comply with the best standards of business & legal ethics in servicing our customers, to ensure that they receive the maximum benefits from their tax affairs.
However, make sure you act immediately when you receive a levy notice, because you only have 30 days before IRS starts charging the levy. In the case of a bank levy, we have 21 days before the bank releases the funds to the IRS. Hence, we have a very limited time to act before your next pay check, or before the bank seize your bank account. Our tax professionals will act promptly to review your case and make an appeal in front of the IRS to get a bank and wage levy release for you.
Do not hesitate to call us or drop by to meet our consultants do discuss your options for bank and wage levy release.