IRS wage garnishments and IRS levies can be stopped in 3-4 business days, if done properly. One has to realize that the last resort the IRS utilizes is a wage garnishment or levy. This is one of the most lethal weapons available to the IRS. However, when facing a garnishment or levy, the most important thing is not to panic or ignore the problem. There are several ways to have the levy or garnishment released.
The first thing that has to be done is to verify that the taxpayer is in compliance with the IRS. Being in compliance means that all outstanding tax returns for every year have been filed with the IRS. Those tax returns include 1040′s, 1099′s, quarterly estimated tax payments, 941′s or 940′s depending on the particular situation of the taxpayer.
In order to determine if you are in compliance, the IRS is contacted immediately upon receipt notice of an IRS garnishment or levy. Be advised that you need to be very cautious when contacting the IRS in regards to this. Before the IRS will give you any information of your compliance, they will immediately interrogate you, trying to find out what bank accounts you have, what other incomes you have and the assets you own. This is all in an effort to begin to levy, garnish or seize any assets the taxpayer may have. This is one of the main reasons why a tax professional should contact the IRS on the taxpayers’ behalf. A tax professional does not have to release their clients personal information to the IRS. The representatives’ goal at this point is to only determine if the taxpayer is in compliance with the IRS.
Everything is determined by the IRS computers and the Automated Collections Division. The only way to be brought into compliance is by filing returns for each year that wasn’t filed. Depending on what the computer states, you may have to file 6 year’s worth of IRS tax returns or they may even go back to 15 year’s worth of taxes. This is why the IRS must be contacted immediately to figure out what needs to be done to bring the taxpayer back into compliance.
If there are compliance issues, the IRS will inform the tax professional or the taxpayer what taxes must be filed. It is important to prepare these taxes, but not to mail them in. They need to be faxed to the IRS so they are acknowledged in the IRS computers immediately and the processing of these returns can start within hours, not weeks or months; the IRS will not release the wage garnishment until the tax returns are at least submitted for processing to the IRS.
Once it is determined that a taxpayer is in compliance, the next thing the IRS is looking for is a resolution to the outstanding taxes owed to the IRS. This may be in the form of a payment plan, a partial payment plan, having the taxpayer declared non-collectible or entering into an offer in compromise.
In most cases, the IRS will request your financial information through particular forms in order to determine how much, if anything, you can afford to pay towards your total tax liability. If your file is being handled in the automated collections division, a 433F form (a simplified Collection Information Statement) has to be prepared and submitted along with supporting documentation. If the file is with a field agent, a 433A form (a detailed Collection Information Statement) has to be prepared and filed with the field agent, along with the supporting documentation.
The IRS knows that in 90% of the cases, the wage garnishment or IRS levy is a hardship on the taxpayer, and the proper procedure is that after submitting these financials, the IRS should release the wage garnishment within hours. Unfortunately, taxpayers try to perform this procedure by themselves; without a tax professional involved, the IRS simply drags their feet and prolongs the situation. For instance, if a taxpayer failed to fill out prior paperwork correctly, some IRS agents may take it personally and therefore purposfully prolong your case. The tax professional you chose to represent you should take the necessary steps to force the IRS to comply with the rules and regulations in order to have these matters expedited within hours rather than weeks or months.
There is a second method of having a wage garnishment or levy released; this procedure consists of proving to the IRS that a wage garnishment is a true and immediate hardship to the taxpayer. A hardship to the taxpayer is that housing, transportation or food expenses are at an immediate risk; i.e. if your electricity is about to be disconnected, and you can provide a statement from your service provider showing that your electricity is being shut off due to non-payment or if you are able to provide an eviction notice or foreclosure notice due to non-payment the same method applies. Asking the IRS to release the wage garnishment based on these facts is a very difficult task because the IRS is receiving nothing in return providing a solution to the outstanding taxes. This can be an up-hill fight for the taxpayer to handle on their own, but hiring a professional will help secure you get the best possible outcome.
At JG Tax Group, 91% of our wage garnishment customers have their garnishments lifted in 3 to 4 business days and 99.9% have their garnishments lifted within 8 business days. We don’t send mail to resolve your problem. We pick up the phone and handle it immediately with the IRS.
We have multiple years of experience and can do this because our company specializes in understanding exactly how the IRS works and what documentation is needed. If you are facing any sort of levy or garnishment, call JG Tax Group today to speak to a tax professional about the best way to quickly and efficiently resolve your IRS tax problems.
No comments:
Post a Comment