eTaxrelief
Professional Representation & Tax Relief
Phone: (415) 374.3498, Fax: (510) 791.5053
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fax: (510) 791-5053
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Frequently Asked Questions
Resolved Question
Show me another »IRS solution???
I have been told by my employer that they are going to start deducting 100% of my paycheck until a $5000 bill is paid. This is termed a "levy". I called one of those tax negotiation companies and and was told that I don't qualify for an Offer in Compromise because I make too much money. Has anyone dealt with the IRS successfully?
Best Answer - Chosen by Asker
First of all you can count on this information that I am providing. I am an Enrolled Agent, licensed by the IRS to represent taxpayers and I handle these issues everyday.
A few things.
I. There is no such thing as a 100% wage levy. The amount is substancial, but it is not 100%. If you would like to see exactly how much will be deducted from your paycheck via an IRS wage levy, you can refer to the following tables to calculate the amount: http://www.irs.gov/pub/irs-pdf/p1494.pdf
II. Chances are you do not qualify for an Offer in
Compromise if you only owe the IRS $5k and are still actively working. The offer in compromise program is hugely overpromoted by poor tax resolution companies looking to make a quick buck.
III. It is possible to have the wage levy removed immediately and before any money is taken out of your paycheck, but you have to act quickly. It will be necessary for you to be in compliance, meaning you are current on all of your tax filings to date.
IV. Acting quickly may also help you avoid a tax lien which will have harsh consequenes on your credit report and credit score.
V. If the amount of tax you owe is based upon a tax return the IRS filed for you, you will most likely want to file a return to replace the IRS substitute for return to reduce the liability.
V. In addition to the wage garnishment, you are also currently subject to bank levy action. That means that as of RIGHT NOW THE IRS CAN LEVY YOUR BANK ACCOUNT AND TAKE ANY MONEY YOU HAVE IN IT UP TO THE AMOUNT OF TAX DUE. You need to resolve your issue immediately to prevent this from happening. Once the IRS levies a bank account it is nearly impossible to get them to release the funds.
VI. The best way to resolve your tax debt is likely going to be by setting up what is called a guaranteed or streamlined installment agreeement. For information on these types of agreements you can view a short video I have put togather free of charge on my youtube channel at: http://youtube.com/watch?v=b5SnqFLTJGY
I hope this information helps.
Christopher R. Jacquez, EA
A few things.
I. There is no such thing as a 100% wage levy. The amount is substancial, but it is not 100%. If you would like to see exactly how much will be deducted from your paycheck via an IRS wage levy, you can refer to the following tables to calculate the amount: http://www.irs.gov/pub/irs-pdf/p1494.pdf
II. Chances are you do not qualify for an Offer in
Compromise if you only owe the IRS $5k and are still actively working. The offer in compromise program is hugely overpromoted by poor tax resolution companies looking to make a quick buck.
III. It is possible to have the wage levy removed immediately and before any money is taken out of your paycheck, but you have to act quickly. It will be necessary for you to be in compliance, meaning you are current on all of your tax filings to date.
IV. Acting quickly may also help you avoid a tax lien which will have harsh consequenes on your credit report and credit score.
V. If the amount of tax you owe is based upon a tax return the IRS filed for you, you will most likely want to file a return to replace the IRS substitute for return to reduce the liability.
V. In addition to the wage garnishment, you are also currently subject to bank levy action. That means that as of RIGHT NOW THE IRS CAN LEVY YOUR BANK ACCOUNT AND TAKE ANY MONEY YOU HAVE IN IT UP TO THE AMOUNT OF TAX DUE. You need to resolve your issue immediately to prevent this from happening. Once the IRS levies a bank account it is nearly impossible to get them to release the funds.
VI. The best way to resolve your tax debt is likely going to be by setting up what is called a guaranteed or streamlined installment agreeement. For information on these types of agreements you can view a short video I have put togather free of charge on my youtube channel at: http://youtube.com/watch?v=b5SnqFLTJGY
I hope this information helps.
Christopher R. Jacquez, EA
Source(s):
eTaxrelief.com
www.irs.gov pub 1494
www.irs.gov pub 1494
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Resolved Question
I have never filed taxes before, so what would happen if I just up and filed this year?
I am 30 yrs. old and have worked all of my adult life, but never filed. Should I leave it alone and never file? What would happen if I did? How much trouble am I in?
Best Answer - Chosen by Asker
Lindsay,
This is a question I get often. First of all the worst thing you can do is ignore the situation. It is possible the IRS has filed tax returns for you if you had income reported under your social security in any given year. If the IRS did file returns for you there may be current assesments outstanding, tax liens and the IRS may be able to take enforcement action against you (ie...wage garnishments, bank levies etc..). It is also possible you had enough withholding and payment to not have a liability. Still you may wish to file the more recent years asap so that you can collect any refunds you may still be entilted to. Typically what I do in this situation is to contact the IRS and find out what status the taxpayers account is currently in, which tax return years the IRS is seeking returns for, and if there are any assements currently outstanding. The next step would be to secure a collection hold as necessary, file any returns required to get you back into compliance and set you up on a payment solution that works for you if there is a liability. I have alot of good information on my website that should provide you with more answers. It is there for your review free of charge. You are of course welcome to contact me if you decide to hire professional representation. There is never a fee or obligation for the initial telephone consultation. Hope the information helps. Best of luck to you, and rest assured there is a solution that will work for you. Just don't ignore it that is the worst thing you can do.
eTaxrelief.com
This is a question I get often. First of all the worst thing you can do is ignore the situation. It is possible the IRS has filed tax returns for you if you had income reported under your social security in any given year. If the IRS did file returns for you there may be current assesments outstanding, tax liens and the IRS may be able to take enforcement action against you (ie...wage garnishments, bank levies etc..). It is also possible you had enough withholding and payment to not have a liability. Still you may wish to file the more recent years asap so that you can collect any refunds you may still be entilted to. Typically what I do in this situation is to contact the IRS and find out what status the taxpayers account is currently in, which tax return years the IRS is seeking returns for, and if there are any assements currently outstanding. The next step would be to secure a collection hold as necessary, file any returns required to get you back into compliance and set you up on a payment solution that works for you if there is a liability. I have alot of good information on my website that should provide you with more answers. It is there for your review free of charge. You are of course welcome to contact me if you decide to hire professional representation. There is never a fee or obligation for the initial telephone consultation. Hope the information helps. Best of luck to you, and rest assured there is a solution that will work for you. Just don't ignore it that is the worst thing you can do.
eTaxrelief.com
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Resolved Question
Wage garnishment?
Can a wage garnishment be enforced on a 1099
independent contractor?
Best Answer - Chosen by Voters
Yes an no. What will happen is a levy will be issued to any company or individual paying the taxpayer that has the tax debt. The levy will require that the payor remit funds to the IRS. Is it a "wage garnishment"? No, but it in effect serves the same purpose and achieves the same results. You need to secure a hold against collections on the account or get into compliance and set up an arrangement to satisfy the debt immediately to prevent levy action. In addition to the levies on your clients if you are an independent contractor the IRS can also levy your bank accounts. I have a good amount of information on levies as well as tax liens and various payment arrangements on my website which you can read through free of charge. I also provide no cost and no obligation telephone consultations if you are considering hiring a professional to represent you. I am an Enrolled Agent licensed to represent taxpayers before the IRS and do so on a daily basis. Hope the information helps and best of luck.
eTaxrelief.com
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fax: (510) 791-5053
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