Dealing with IRS issues such as wage garnishments and bank levies can be a difficult task. Mr. Michael Sullivan, a former IRS agent with over a decade of experience, is here to provide expert guidance on tackling these challenges. His insights into IRS levy prevention and wage garnishment defense can be a lifeline for those facing these situations.

Stopping IRS Wage Garnishment and Avoiding IRS Bank Levy

Dealing with the IRS can be a challenging experience, especially when it comes to issues like wage garnishments and bank levies. Mr. Michael Sullivan, a former IRS agent with over a decade of experience, shares valuable insights to help you navigate these situations. His expertise in IRS levy prevention and wage garnishment defense can be a lifesaver for those struggling with these issues.

Types of Levies and IRS Notices

According to Mr. Michael Sullivan, there are two primary types of levies issued by the IRS: wage garnishment (Form 668-W) and bank levy (Form 668-A). He emphasizes that understanding the series of IRS notices, including CP1000, CP501, CP503, CP504, CP1058, and CP90, is crucial. These notices signal the progression towards the automatic triggering of levies by the IRS.

Understanding the Different Types of Levies:

  • Wage Garnishment (Form 668-W): This type of levy directly impacts your income. The IRS will contact your employer to garnish some of your wages to satisfy your tax debt. It’s ongoing and continues until the debt is fully paid or other arrangements are made.
  • Bank Levy (Form 668-A): A bank levy is a one-time levy where the IRS freezes your bank account and seizes funds up to the amount of your tax debt. This action can have immediate and significant financial implications.

Recognizing Key IRS Notices in Detail:

  • CP1000: This notice is often the first in a series, indicating a discrepancy in your tax return that could lead to further scrutiny.
  • CP501: This is a reminder notice about your outstanding tax debt.
  • CP503 and CP504: These notices are more urgent, indicating the IRS’s intent to levy if the debt is not settled.
  • CP1058 (Final Notice of Intent to Levy): This is the last notice before the IRS takes action. It’s crucial to respond to this notice if you want to stop the levy.
  • CP90 (Notice of Your Right to a Hearing): This notice provides information about your right to appeal the IRS’s decision to levy.

How IRS Levies Work and How to Stop Them?

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money from your bank or other financial account, and seize and sell your vehicle(s), real estate, and other personal property.

Here’s a brief overview of the process:

  1. Notice of Intent to Levy: The IRS first sends a notice, informing you of the tax debt and their intention to levy your assets.
  2. Resolution Period: You get a chance to resolve the debt, either by paying it, arranging a payment plan, or proving financial hardship.
  3. Levy Execution: If the debt remains unresolved, the IRS proceeds to levy assets like bank accounts, wages, or property.
  4. Release of Levy: The levy continues until the debt is cleared or a different arrangement is made. It can be lifted if you demonstrate immediate financial hardship.

Stopping an IRS Levy

  1. Pay the Debt: If possible, paying your tax debt in full is the quickest way to stop a levy.
  2. Set Up a Payment Plan: The IRS often agrees to payment plans where the debt is paid over time.
  3. Dispute the Levy: If you believe the levy is unjustified, you can file an appeal. This is where understanding your rights and possibly seeking professional help is crucial.
  4. Offer in Compromise: This is an agreement to settle your tax debt for less than the full amount owed if you meet certain criteria.
  5. Seek Professional Assistance: Consulting with a tax professional, especially in complex cases, can provide guidance and improve your chances of resolving the issue effectively.

Gathering Information and Taking Action

An essential step in stopping IRS wage garnishment or avoiding an IRS bank levy is to gather all necessary information. The IRS uses data from sources like W-2s, 1099s, and bank interests to determine where to issue levies. Mr. Michael Sullivan advises checking this information on the IRS website to stay informed.

Here’s how you can proactively gather information and take the necessary action:
Collect Relevant Documents: Ensure you have all your financial documents, such as W-2s and 1099s, which the IRS might use to assess your situation. These documents provide crucial insights into your income sources.

  • Review Bank Interest Statements: The IRS may also examine your bank interest statements. Regularly reviewing these can give you a clearer picture of what the IRS sees and assesses.
  • Access IRS Records: Mr. Michael Sullivan advises visiting the IRS website to access your tax records. Here’s what you can do:
    • Request a transcript of your tax returns to see what the IRS has on file.
    • Check for any discrepancies or unexpected information that could trigger a levy.
    • Understand your current standing with the IRS, including any debts or flags.
  • Stay Informed About Notices: Keep an eye out for any IRS notices that may arrive in your mail. These notices can provide early warnings of potential actions from the IRS.

Implementing Wage Garnishment Defense and IRS Levy Prevention

To effectively stop a levy, Mr. Michael Sullivan recommends promptly contacting the IRS and submitting a financial statement. The type of form used depends on whether you’re dealing with a service center (IRS Form 433-F) or a local office (IRS Form 433-A). Providing detailed documentation, including bank statements, wage income statements, and a list of expenses, is essential in this process.

Seeking Professional Help When Necessary

In cases of significant debt, Mr. Michael Sullivan can act as your wage garnishment defense and implement IRS levy prevention. He also highlights the IRS’s National Standard Income Expense program, which can limit allowable expenses and affect your monthly payments to the IRS.

With his extensive experience as an IRS agent, he has developed excellent negotiation skills, especially in complex financial situations that involve multiple sources of income. He is well-versed in communicating on behalf of his clients, navigating through IRS policies, and protecting them from unfair levies. Additionally, he can assist in setting up efficient tax management systems and provide financial planning advice to avoid future complications.

In Wrapping Up

Understanding how to stop IRS wage garnishment and avoid an IRS bank levy is vital for financial security and peace of mind. Which is why, getting direct advice from former IRS agent, Mr. Michael Sullivan, can help you get comprehensive guidance on your underlying tax problems.

His advice on staying informed, promptly responding to IRS notices, and seeking professional help when necessary, can protect yourself from these financial challenges. Remember, taking proactive steps can make all the difference in successfully handling and preventing IRS wage garnishments and bank levies.

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Mr. Michael D. Sullivan

Michael D. Sullivan is the founder of MD Sullivan Tax Group. He had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.

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