Don’t Get Slapped With Wage Garnishments and Wage Levies

Get a FREE Tax Relief Consultation

Learn About Our Tax Relief Services

What’s the difference between wage garnishments and wage levies? A wage garnishment is a wage levy; they’re essentially different terms for the same subject. A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. Liens are legal claims that are recorded or noticed against your property to secure payment of a tax debt. The levy is the actual act of taking the payment or property in order to satisfy the debt. 

If you have a tax levy against your wages, you have either ignored the many notifications from the IRS or have not responded to them in the proper manner. Because they want their money and you have not responded accordingly, they will take that money directly out of your wages. 

If you fall into this pattern, the IRS will first send you a Notice and Demand for payment, better known as a tax bill. If you refuse to pay this bill, you’ll be sent a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. You will receive these items approximately 30 days before the levy.

“

You have many options to resolve a levy.

”

If you do not act and settle the debt, the IRS will levy your bank accounts, your personal property, your home, and anything else of value that you own. It’s easiest for them to levy your bank accounts and your wages. 

However, when you get a levy, how can you get it removed?

1. You can pay the amount that you owe.
2. The time period for collection expires before the levy is issued.
3. You can enter into an Installment Agreement or an Offer in Compromise to negotiate the release of a levy.
4. If the levy creates an economic hardship for you, you can have it removed.
5. The value of the property is more than the amount owed and the levy will not hurt the IRS’s ability to collect the amount owed.
   

If you’re having trouble with this issue, please don’t hesitate to contact me. I would be happy to provide you with assistance!

How to Pay the Lowest IRS Tax Debt Settlement

 

Get a FREE Tax Relief Consultation

Learn About Our Tax Relief Services

I wanted to offer you some more information about offers in compromise. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It’s a good option if you can’t pay your full tax liability, or if doing so will create a financial hardship.

The IRS considers each person’s situation on a case-by-case basis. There are guidelines to follow for income, expenses allowed, assets owned, and finally, if they feel you have the ability to pay. The IRS will generally approve an offer in compromise if they feel the offered amount represents the most they can collect within a reasonable amount of time.

This program isn’t for everyone. If you don’t qualify, you should consider an installment agreement.

“

The IRS considered each person’s
situation on a case-by-case basis

”

Forms that must be submitted include a Form 433 disclosing all income, expenses, assets and debts. This is a key document. Form 656 must also must also be filed requesting and justifying your offer; this will include taxes due and years covered, your reason for the offer, low income certification, payment terms, the amount of down payment and deposition of the offer, your source of funds for that down payment and continuing payments, and finally, your offer terms. Lastly, there is a filing fee required of $186 that must accompany the offer in compromise.

You have payment options that include lump sum cash, which is paid over five or fewer months. A required 20% non-refundable deposit is paid at application time while your offer is being considered. Your other option is periodic payment, which is paid in six or more monthly payments, and in full under 24 months after your offer is accepted by the IRS. It can usually take up to a year to get an offer accepted. If the IRS does not make a determination on your offer within two years, your offer is automatically accepted. 

These are just some small details for an Offer in Compromise with the IRS. It takes a great deal of time and documentation. To get your least amount to pay to the IRS, you should hire a qualified tax problem specialist. Please feel free to reach out to me for help or for answers to any questions you have.

What Is Innocent Spouse Relief?

Most married couples file joint returns because of the many advantages in filing a joint return. However, one of the disadvantages is that both people are liable for the income taxes. Failure to pay income taxes means both people are responsible. 

If there’s a divorce, even if a court decree indicates that one person must pay the taxes, the IRS doesn’t care. They want to see the money no matter what. If one person earns most of the money or causes the problem, the IRS will still look to both of them for payment.

“

The IRS just wants the money.

”

If one (current or former) spouse feels they have no control over the situation, they may be able to be removed from responsibility. This is called innocent spouse relief.  

There are three types of innocent spouse relief: innocent spouse relief, separation of liability relief, and equitable relief. Each area has its own specific requirements. 

If you have any questions about this topic or more, just give me a call or send me an email. I would be happy to help you!