You’re on your way to meet friends for dinner and you need some cash. You think, “I’ll stop at the ATM machine on the way.” There is an ATM on your way to the restaurant. You put your ATM card in the slot. After typing in your password and the amount of your withdrawal you begin tapping your fingers on the machine. You are in a hurry and left yourself with no time to spare. You are waiting. You’re ready to take the twenties.
What comes out of the machine is NOTHING. ZERO. NADA.
There are no twenties but rather a slip of paper that has a big zero next to the word balance. You stand there. You try it again. You are filled with terror, believing that some despicable character has stolen your identity and absconded with your money.
WHAT HAPPENED? WHY DON’T YOU HAVE ANY MONEY IN THE BANK?
It’s late and the bank is closed, so after calling your friends and expressing your regrets you head home. The fear of not knowing what has happened to your money feels crushing. Once home you pass by the unopened stack of IRS notices. Just the sight of them compounds the fear you are feeling.
THE IRS HAS LEVIED YOU.
YOU JUST DON’T KNOW IT YET.
Morning finally arrives and you rush to the bank. You are very succinct in your story. Someone has stolen your money and you want it back! While pulling up your information on the computer screen you sense empathy from the bank official and are hopeful. “Your money has not been stolen from your account. The IRS has placed a levy on your bank account.” The words don’t quite sink in but then in an instant the images of all those unopened IRS notices provide an unmistakable clarity to the situation.
YOU KNOW THAT YOU HAVE AN IRS TAX DEBT.
THE IRS ISN'T "JUST GOING TO FORGET IT."
What Happened Is This:
The IRS is authorized to collect past due taxes by levy. An IRS levy is a legal seizure of your property to satisfy a your tax debt. Real, personal, tangible and intangible property is all subject to an IRS levy. The IRS can seize and sell property that you hold and commonly levy property that is yours but held by someone else such as your wages, retirement accounts and bank accounts. The IRS will proceed with a levy when the following three requirements have been met: (1) the IRS has assessed the tax and sent you a notice and demand for payment (2) you neglected or refused to pay the tax and (3) a final notice of intent to levy and notice of your right to a hearing was sent to you at least 30 days before the levy. The notice may be given in person or by mail.
IMPORTANT: YOU DO NOT NEED TO HAVE ACTUALLY RECEIVED THE IRS NOTICE TO BE ENFORCEABLE.
YOUR WAGES HAVE BEEN LEVIED BY THE IRS:
If your employer has been served with an IRS levy, they generally have one full pay period before they are required to send any funds from their employees’ wages. As an employee you can exempt a portion of your wages from an IRS levy. This amount is your standard deduction plus personal exemptions divided by the weeks related to your applicable pay schedule. For example, a single person paid biweekly would be able to exempt $ 384.62.
Social Security benefits as well as Social Security Disability (SSDI) benefits received under the Social Security Administration are subject to an automatic 15% levy per the Federal Payment Levy Program (FPLP). Retirement accounts including an individual retirement account are also subject to an IRS levy. Your principal residence is however exempt from a tax levy.
If you are the holder of property and have received an IRS levy order for that property, ignoring the request can have dire consequences to you. If you fail or refuse to surrender the property subject to the levy you become personally liable for payment of an amount equal in value to the property levied upon or the taxpayer’s liability. Additionally, a penalty can be imposed if you fail or refuse in the amount of 50% equal to the value of the property or the tax liability.
BE PROACTIVE: Contact Flat Fee Tax Service at 1-866-747-7435
The head in the sand approach is not an effective strategy to use in situations where a levy is pending or is in place. The hardship that accompanies a levy is not lost on the IRS and immediate contact with the agency is the first step in working towards a resolution.
Our IRS Levy Hotline: 1-866-747-7435
Flat Fee Tax Service has never failed to have an IRS levy stopped and released.