When the IRS engages in enforced collection of a tax debt it almost always begins with the taxpayer’s bank accounts and wages.
The IRS will serve what is known as a Notice of Levy (the “Levy”) on all of the taxpayer’s known financial institutions and employers.
Generally, a bank must freeze your account for 21 days from the date of the Levy before it is required to turn over the funds to the IRS.
This gives the taxpayer, the bank and the IRS an opportunity to resolve the matter before the taxpayer’s funds are lost.
A wage levy takes effect immediately upon receipt and the taxpayer’s employer must pay over to the IRS the proper levy amount on each payday the levy remains in effect.
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The IRS usually will not resort to the issuance of bank and wage levies until after it has made several attempts to contact the taxpayer and resolve the matter amicably through the use of a collection alternative.
Often our clients first contact with us is after the IRS has begun enforced collection and has issued either a wage levy, a bank levy or both.
We regularly help these taxpayers get their levies released; however, it is often a difficult job because the IRS, having been ignored by the taxpayer prior to our engagement, is now in no mood to make concessions to the taxpayer.
The earlier the problem is addressed the better are your chances of obtaining a favorable outcome.
Contact our office immediately upon receipt of the first IRS notice you get demanding payment of back taxes or requesting the filing of an unfiled return.
The IRS audited my 2007 and 2008 tax returns and disallowed 100% of my business expenses because the auditor said I didn’t have sufficient records. I hired The Pappas Group and they were able to prove by other means that my deductions were valid and the IRS ended up only disallowing about 15% of my expenses. Had I not hired Pappas I would been assessed taxes, penalties and interest in excess of $100,000. The Pappas group now does all of my accounting work and prepares both my business and personal tax returns.
The state of Florida came after me criminally for collected but unremitted sales taxes. The Pappas Group negotiated a deal with the prosecutors that got the charges dropped and allowed me to repay in monthly installments what I owed. They worked fast and efficiently and I would recommend their services to anyone being investigated by the taxing authorities.