STOP AN IRS TAX LEVY WITH
AN TAX SETTLEMENT
At least once a day a taxpayer calls in and asks our tax professionals how to stop or prevent an IRS tax levy. There are different ways to stop a tax levy, but one very effective way is to file an Offer in Compromise, so let's discuss that.
Tax Levy - IRS Garnishment on Wages
A tax settlement through the Offer in Compromise program will stop an IRS tax levy. Did you know that an IRS tax levy is different from a federal tax lien tax?
A tax levy is when the IRS actually takes enforcement action against you to seize your money. It usually comes as an IRS garnishment or a bank levy. The key difference between an IRS garnishment on your wages and a bank levy is that the IRS garnishment seizing your paycheck is continuous, and by that, we mean that the IRS files the paperwork one time, sends it to your employer, and then they get a "large chunk" of your paycheck every time you get paid. This very unpleasant experience will continue until they are paid in full or they are stopped.
When the IRS orders your employer to forward your earnings to them, this is called an IRS garnishment. The IRS can actually take all of your earnings through what is called a "Manual Levy". All that is required is a signature by an IRS Revenue Officer.
Tax Garnishment -
IRS Tax Levy On Your Bank
An IRS levy on your bank is just what you would expect; the IRS will seize the money out of your bank account(s). This is often referred to as a one-time levy, which is a little misleading because the IRS can file the paperwork over and over, but the fact is that it is not continuous meaning that when the levy hits your bank account, they get the money in the bank account on the day the levy hits. If you put more money in your account after the levy hits they do not get that money.
An tax levy on your bank allows you to get your money back within a twenty-one (21) window. This twenty-one day period of time includes Saturdays, Sundays and holidays. This doesn't give you a lot of time to work with. So you better get started.
The best way to avoid all tax levies is to get compliant and come up with a game plan to solve your tax problem once and for all. IRS tax levies happen all the time and people call our tax professionals when they have been informed that their paycheck is about to get "a whole lot smaller".
One way to stop an IRS levy is to file a tax settlement. An Offer in Compromise is a proposal to settle with the IRS. Conceptually, the idea of an Offer in Compromise is very simple, but in reality, folks need help doing it because there is an awful lot of detail involved and if you don’t do it just right, the IRS will reject or return your offer and you will be facing another IRS garnishment.
Here’s what the Tax Code says:
Suspension of a Tax Levy While the Offer is Pending:
1. IRC 6331(k) provides that no tax levy may be made
• During the period that the Offer in Compromise is pending
• For an additional 30 days after the Offer in Compromise is rejected, and
• During the time any appeal of the rejection is pending.
2. Treasury Regulation 301.7122-1(d)(2) states that an Offer in Compromise becomes pending once it is accepted for processing. This is the date the IRS official signs the Form 656.
Here are a few things to keep in mind: Submitting an Offer in Compromise to stop a tax levy has the potential to be a "grand slam" for you, the taxpayer. In the short term, it can and will stop the levy. And in the long term, it can actually settle your entire debt for less than what you owe. In other words, it can solve the bigger problem, your unpaid tax debt.
It does take time to put together an Offer in Compromise. Our tax pro's counsel our clients that a regular tax settlement will take ten to twelve months to complete.
THE IRS TAX ATTORNEYS AT FLAT FEE TAX SERVICE CAN HAVE YOUR IRS TAX LEVY STOPPED AND RELEASED IN ONE DAY. AFTER WE STOP THE IRS GARNISHMENT, WE CAN THEN COMPLETE YOUR TAX SETTLEMENT.
People need a tax levy stopped and released quickly because they cannot pay their bills without their paycheck (obviously). It takes time and thought to properly put together an Offer in Compromise. How long it takes depends upon your particular circumstances. There are, of course, other ways to stop IRS levies but this is one you may want to consider.
THE TAX PROFESSIONALS AT FLAT FEE TAX SERVICE KNOW
EXACTLY HOW TO STOP AN
IRS GARNISHMENT AND SETTLE WITH THE IRS.
SAVE YOUR PAYCHECK TODAY.
OUR IRS TAX ATTORNEYS
STOP AND END AN IRS TAX LEVY IN ONE DAY.
ISN'T THAT THE COMBINATION YOU ARE LOOKING FOR?