Mike’s 10 years experience in the IRS saves you money!

Do you know you can protect your hard-earned income till the end with the right strategy? Yes, you heard that right. Mike knows the ropes to protect your income from IRS actions. His 10 years of experience as an IRS agent gives you the right knowledge to secure your financial stability.

Ever had that sinking feeling when money just disappeared from your paycheck or bank account? That’s wage garnishments and bank levies in action!

But, don’t worry when Mike is by your side. For over a decade, he has dealt with X+ cases of wage garnishments and bank levies. Every time, he made sure that the hard-earned money did not go to waste.

He’ll secure your money too!

Know From Mike: Why IRS Implements these Measures?

Case 1: IRS failed to cooperate with the taxpayer

The IRS uses wage garnishments and bank levies primarily when they’ve repeatedly tried to collect tax debts and the taxpayer has yet to cooperate.

How can Mike resolve this issue?

Mike negotiates payment plans, seeks penalty abatement in certain cases, or explores options for settlement through programs like Offers in Compromise.

Case 2: Unpaid Penalties

Unpaid penalties are financial charges imposed for various reasons, including late payment, underpayment, or non-compliance with tax laws.

How can Mike resolve this issue?

Mike will appeal for penalty relief based on reasonable cause, demonstrating circumstances that led to non-compliance, or requesting abatement through formal procedures.

Unresolved Tax Disputes
Tax disputes arise when there’s a discrepancy, disagreement, or ambiguity between the taxpayer and the tax authority regarding tax obligations, assessments, or interpretations of tax laws.

How can Mike resolve this issue?

Mike will provide substantial documents engaging in discussions or negotiations with tax authorities and, if necessary, appealing to higher administrative bodies or tax courts for a resolution.

Tax Liens Imposed on Assets
Unresolved tax issues can lead to imposing tax liens on the taxpayer’s property or assets. A tax lien is a legal claim by the government against the taxpayer’s property.

How can Mike resolve this issue?

Resolving tax liens often involves paying off the tax debt, negotiating installment agreements, or, in some cases, applying for lien withdrawal or subordination.

The IRS views these tools as last-resort measures for taxpayers to address these issues as soon as possible.

Process of Wage Garnishment: How does the IRS collect?

  • Notice to Taxpayer: The IRS sends a written notice, usually CP297 or CP90, informing the taxpayer about the intent to garnish wages.
  • Waiting Period of 30 Days: There’s a 30-day period from the notice date for the taxpayer to resolve the debt, either by payment or negotiation.
  • Employer receives Notification: After the waiting period, if unresolved, the IRS sends a notice to the employer to initiate wage garnishment.
  • Percentage Garnished: The IRS specifies the amount or percentage to be withheld from the employee’s paycheck.
  • Continues the Process: Garnishment continues until the debt is fully paid or until an agreement is reached to stop or adjust the garnishment.
    Right to Appeal: Taxpayers can challenge the garnishment through a Collection Due Process hearing.

Seeking Mike’s help can make it easier for you to know your rights, which can, in turn, help you save a major chunk of your money.

Decoding IRS Bank Levies Process: IRS Sending Multiple Notices (for follow up)

IRS collection notices is sent to inform you about the impending bank levy, offering opportunities to resolve the issue

Ignored Notices
Failure to address or respond to these notices prompts the IRS to proceed with the levy process.

Notification directly from Bank
Once ignored notices reach a critical point, the IRS contacts the bank, directing them to freeze funds in the account for 21 days.

Holding Period Of 21 days
During this 21-day period, the bank freezes the funds, preventing the account holder from accessing them.

Transfer of Funds
If no resolution is achieved within the holding period, the bank transfers the frozen funds to the IRS to settle the outstanding tax debt.

Resolution Possibility by Taxpayer
Taxpayers can still resolve the issue before the transfer by negotiating with the IRS or seeking alternatives to satisfy the debt and prevent the fund transfer.

Horrors Of Wage Garnishments and Bank Levies: Impact that Counts!

Financial Strain on Taxpayers
Wage garnishments and bank levies exert immediate financial pressure, reducing income or seizing liquid assets.

Credit Implications
Both actions can tarnish credit scores, affecting future borrowing and financial opportunities.

Legal Complications
Garnishments and levies involve legal procedures that, if mishandled, could lead to further legal entanglements.

Bank Notification
These actions involve informing your employer or bank, which can be embarrassing and disrupt your financial relationships with the bank further.

Long-term Consequences
Bank levies can impact financial stability beyond immediate financial loss, affecting overall financial stability and future planning.

If you are struggling with everyday expenses or facing operational challenges. Then, Mike knows the right way to settle this down for you.

Mike Knows All your Rights and Protections!

  • Notice and Due Process: Taxpayers have the right to receive prior notice and ample opportunity to resolve the tax issue before wage garnishment or bank levy proceedings begin.
  • Appeal Rights: Taxpayers can appeal the proposed garnishment or levy through a Collection Due Process (CDP) hearing, presenting their case to the IRS Office of Appeals.
  • Instalment Agreements: Individuals can negotiate installment agreements with the IRS to pay off tax debts gradually, potentially avoiding aggressive collection actions.
  • Offer in Compromise (OIC): Taxpayers can explore OIC, which allows settling the tax debt for less than the full amount owed, under specific qualifying conditions.
  • Financial Hardship Consideration: The IRS may consider a taxpayer’s financial hardship, potentially suspending or adjusting collection actions temporarily.

Ways to Prevent or Address Garnishments and Levies

The best approach is to be proactive – addressing tax issues before they escalate,if faced with a potential garnishment or levy:

Timely Communication with the IRS: Respond promptly to IRS notices to address and resolve outstanding tax issues before they escalate to garnishments or levies.

  • Negotiate Payment Plans: Set up installment payment arrangements with the IRS to gradually satisfy tax debts, preventing aggressive collection actions.
  • Offer in Compromise (OIC): Explore the option of OIC to settle the tax debt for less than the total amount owed if you meet specific eligibility criteria.
  • Financial Hardship Consideration: Request a temporary delay, adjustment, or suspension of collection actions based on financial hardship circumstances.
  • Maintain Timely Tax Filing: Ensure timely filing and payment of current taxes to avoid accumulating additional tax debts and prevent future collection actions.

Final Thoughts

Facing the IRS wage garnishment process or bank levies can be daunting, but understanding and addressing them promptly can mitigate their impacts. Whether through negotiation, payment plans, or seeking professional help, taking proactive steps can help you navigate these challenging situations and secure financial stability.

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Author

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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