Enrolled Agent Reveals IRS Collection Methods
August 26, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
When you owe past due taxes to the United States Internal Revenue Service, your account is assigned to the IRS Collection Division. Collection action can be taken by the Automated Collections Service or by an IRS Revenue Officer. Being the subject of an IRS collection action can be scary and intimidating. In this article, I’ll list a few of their “enforced collection” methods.
The first thing you need to know about IRS collections is their chief operating philosophy: to collect as much money (from you) as possible as quickly as possible. Here are some of the methods they use to do that…
The IRS may choose to “levy” any bank accounts in your name. According to the IRS, a “levy” is a “legal seizure of your property to satisfy a tax debt.” The IRS may contact your bank and seize your funds after you have refused to pay your back tax debt.
If the IRS levies your bank account, your bank will be required to hold money up to the amount you owe for 21 days. The holding period allows the IRS time to resolve any questions about who owns the account. After that time, your bank is required to send in your money, and any applicable interest, to the IRS.
The levy will end when the levy is released, you pay your tax debt, or the time expires for legally collecting the tax. So that’s the basics of an IRS levy.
The IRS can place a levy on your business assets, if you own a business. These assets include accounts receivables, bank accounts, and any business equipment.
The IRS may choose to require your employer to take out part of your paycheck and send it in. The IRS can also garnish your social security income and even retirement funds.
And last, the IRS can take your property and vehicles – including cars, boats, and even motorcycles.
If the IRS can find any real estate in your name, they may place a lien on it. The IRS flies a “tax lien” at the office of your county recorder, and it will be much more difficult for you to obtain financing or sell the property. The IRS will eventually foreclose if your tax debt goes unpaid long enough.
These methods can seem scary, but an experienced tax professional, such as an enrolled agent, can freeze these actions and help you settle your tax debt. If you are facing action by the IRS to collect taxes you owe, contact a tax resolution specialist today.
Related posts
Enrolled Agent Reveals IRS Collection Methods
July 2, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
When you owe past due taxes to the United States Internal Revenue Service, your account is assigned to the IRS Collection Division. Collection action can be taken by the Automated Collections Service or by an IRS Revenue Officer. Being the subject of an IRS collection action can be scary and intimidating. In this article, I’ll list a few of their “enforced collection” methods.
The first thing you need to know about IRS collections is their chief operating philosophy: to collect as much money (from you) as possible as quickly as possible. Here are some of the methods they use to do that…
The IRS may choose to “levy” any bank accounts in your name. According to the IRS, a “levy” is a “legal seizure of your property to satisfy a tax debt.” The IRS may contact your bank and seize your funds after you have refused to pay your back tax debt.
If the IRS levies your bank account, your bank will be required to hold money up to the amount you owe for 21 days. The holding period allows the IRS time to resolve any questions about who owns the account. After that time, your bank is required to send in your money, and any applicable interest, to the IRS.
The levy will end when the levy is released, you pay your tax debt, or the time expires for legally collecting the tax. So that’s the basics of an IRS levy.
The IRS can place a levy on your business assets, if you own a business. These assets include accounts receivables, bank accounts, and any business equipment.
The IRS may choose to require your employer to take out part of your paycheck and send it in. The IRS can also garnish your social security income and even retirement funds.
And last, the IRS can take your property and vehicles – including cars, boats, and even motorcycles.
If the IRS can find any real estate in your name, they may place a lien on it. The IRS flies a “tax lien” at the office of your county recorder, and it will be much more difficult for you to obtain financing or sell the property. The IRS will eventually foreclose if your tax debt goes unpaid long enough.
These methods can seem scary, but an experienced tax professional, such as an enrolled agent, can freeze these actions and help you settle your tax debt. If you are facing action by the IRS to collect taxes you owe, contact a tax resolution specialist today.
Related posts
What method is There to Bring to a Halt to an Internal Revenue Service Notice of Levy On My Bank Account or Employer?
January 27, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
In order for the IRS to abide by the decrees of Congress, they are obliged to to start with, give the subject of the levy what is called in the statutes a Final Notice of Intent to Levy made according to 26 USC § 6330(a)(1) which provides in pertinent part that no levy may be made on any possessions or right to property of anybody unless the Secretary has notified such person in writing of their right to a hearing under this section in advance of such levy being made.
26 USC § 6330(a)(2) provides that the notice required under paragraph (1) shall be handed to you personally; left at the dwelling or usual place of business of such person; or sent by certified or registered mail, return receipt requested, to such person’s last known address; not less than 30 days before the day of the first levy.
When you are given the notice, it is vital that your request for the hearing be made timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include notice to you of the right to request a hearing during the 30-day period under paragraph (2).
When you are given the aforementioned notice and read it you will see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing is timely requested “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” Requesting a CDP hearing is the most successful way to prevent an IRS bank levy or paycheck levy since suspension of collection activity upon such request is mandated by the law.
The IRS have a inclination to endeavor to base your total hearing upon what you put in that hearing request. It is for this reason I highly recommend using the addendums that are part of my IRS Terminator package. I explain the importance of the addendums in the videos at www.irsterminator.com.
I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to the CDP hearing request being sent. There is a little trick to getting such fast action which is explained in the IRS Terminator package. This makes it possible for the employee to never miss a full paycheck and for a bank depositor who is subject to an IRS bank levy to retrieve their funds.
It is not difficult to stop an levy by Federal tax authorities by timely requesting a CDPH (Collection Due Process Hearing) as provided in 26 U.S.C. § 6330(b)(1). However, if proper steps are not taken to come out on top in the hearing, eventually the IRS will get around to holding the hearing and in all likelihood decide against you and move forward on the levy. The IRS Terminator package is planned to give you the absolute best chance to overcome in your hearing.
It happens often that I have been made aware circumstances in which the IRS sent a levy to an employer or financial institution ahead of sending the Final Notice of Intent to Levy. It is still feasible to request a CDPH hearing in a situation such as this and get the collection activity delayed before the IRS takes your paycheck or funds. There are forms in the www.irsterminator.com package whose propose is to competently request a CDPH (Collection Due Process Hearing) in a situation where the notice required by law has not been sent.
There are perhaps not many feelings worse than the one that happens when your financial institution or work place informs you that they have been served or mailed with a Notice of Levy by the IRS instructing them to keep most all of your next paycheck or that there is an IRS bank levy on the funds in your bank account. My IRS Terminator package provides you with the knowledge you should have to render the circumstances as undamaging as possible and ultimately triumph.
Follow me on Twitter.com/legalbear See you there. 
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What You Should Do When an IRS Levy on Your Bank Account Shows Up Without Notice
January 26, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
There is a blog post about IRS miscues here: oldavonladysorders.blogspot.com/2009/09/if-at-first-you-dont-succeed.html. This is a woman who graduated from Penn State. She considers herself to be a Nittany Lioness. She says:
“…the IRS money is owed by the son-in-law. The IRS plunged and seized the entire refund to apply to the past due taxation when the kids had their taxes done this past Spring time. But it wasn’t enough to pay the whole debt off so now, they are holding their checking accounts hostage, trying to abscond with every penny of their income for this month and next month as well in order to pay off this debt to the government.
“What I’ve read about this procedure thus far it does say that the IRS has to give a notice to individuals when they are going to do this by sending them a certified letter to let them know about their plans. However, they screwed up and never sent said certified letter -or if they did send it, it was never received, never signed for them.”
This woman is right on! When she keeps reviewing the i-net, eventually she will come to my free IRS Terminator videos that show how to release an IRS levy on a bank account. The issue that no notice was sent is a very good one from a statutory standpoint. Here’s what the law says in 26 USC § 6330(a)(1):
“No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made.”
After her son-in-law was not sent the notice, he missed the following:
“The notice required under paragraph (1) shall include in simple and nontechnical terms…
(B) the right of the person to request a hearing during the 30-day period under paragraph (2);”
If the Nittany Lioness’ son-in-law had been studying up the necessity of the notice and the entitlement to request a hearing, here is what he could have understood from 26 USC § 6330(e)(1) or the notice he was supposed to have been sent:
“…if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing…appeals therein will be pending and shall be postponed until the period during which such hearing.”
This means that had a hearing opportunity been given notice of and a hearing been requested timely, there never could’ve been an IRS levy on his bank account the son-in-law could have the use of the funds in his bank account and incoming funds during the whole time the hearing was pending. The time the hearing is pending could be a long, long time because Collection Due Process Hearing officers are very busy. The Nittany Lioness continues:
“I need to try to calm down, get some sleep (hopefully), rest my eyes so I can see to try and read more of their claptrap on line, help Mandy find some legal help to at least return some smidgen of income to the kids so they won’t get hit then with bouncing checks that were already written and in process when this notice arrived.”
What this writer should do is obtain my IRS Terminator package and learn both how to request the hearing when no notice has been sent; and, greatly increase her son-in-law’s chances at winning the hearing. If the requester doesn’t make a futile oral disagreement in the hearing, the tax collection activity will resume.
Follow me on Twitter.com/legalbear See you there.
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An IRS Tax Lien Will Delay The Purchase of Your New Home
January 12, 2010 by Taxcut Editor
Filed under Personal and Business Taxes
We found our dream house two years ago and we immediately made an offer on the property. Much to our delight, our offer was accepted, and we put our house on the market and quickly found an enthusiastic buyer. Preferred Tax Relief
Everything was going as planned and our family was looking forward to moving to the new house however, there was one problem that got in the way. To our surprise, there was an IRS tax lien on the home we were selling.
My wife and I had the vaguest idea where this tax lien could have come from. Nothing had ever come in the mail from the IRS to notify us of a problem. No statement of back taxes owed. The problem, apparently, had existed since 2002 and only came to our attention when we were trying to sell the house in 2007.
Of course, I went to our home computer where I had saved our 2002 taxes after filing online, and they showed that we did not owe taxes. It was all too much for us, so I began looking online to find someone who specializes in this sort of problem. Why spend time over things I couldn’t understand? I decided my time was better spent keeping our business afloat rather than devoting hours upon hours to dealing with the IRS, a task that I knew nothing about. Preferred Tax Relief
What frightened me the most was when I learned that, by filing a tax lien, the IRS is has laid claim to our property, including houses or automobiles, and it can include property that we acquired after the tax lien was filed. According to the information I read online, this prevented us from selling our assets or withdrawing equity from our assets as long as the IRS had a claim over those assets. The way I understood it, we would be continuing to work hard in our business with this tax lien hanging over our heads and the possibility of the government taking all we had worked for.
We found Preferred Tax Relief and began working with them. They were quick to address the issues and helped us calm down, which was a big deal for us. They were so fast in handling our tax lien case thus, we were able to sell our house right away and moved into our new home. Preferred Tax Relief
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