Tax Levies and Wage Garnishments In Brighton, MI

IRS levies are tax-year specific. In order to issue a levy or garnishment on a tax year, the IRS must have properly issued all required collection notices first. The last collection notice before the IRS can issue a levy is a “Final Notice”. This notice will be sent to your last known address certified. You have thirty days from the date of this notice to file for a CDP Hearing. If you do not request a CDP Hearing, the IRS can issue tax levies on this tax period.

Once the IRS has sent out all required notices on a tax period, that tax period is open to levy at any point in the future until it is either paid or until resolution is established on the tax year. The IRS can issue levies against your paycheck, your bank account, retirement accounts, and federal payments, such as Social Security.

An IRS levy can put you into severe financial hardship, taking your paycheck and wiping out your bank accounts. Once an IRS levy has been issued, it can be difficult, if not impossible to get the funds released.

Do not wait until the IRS issues a tax levy to seek help in resolving your tax liabilities. Austin & Larson will, in all likelihood, be aware of the proper tax relief program or course of action for your unique tax debt situation.

There are two types of wage garnishments: a “continuous” garnishment and a “one-time” garnishment. A continuous wage levy is sent out to Michigan W-2 employees. It will be sent to your employer and will instantly attach to your paycheck, and it will stay in effect until released by the IRS. An IRS wage levy can take the majority of your paycheck, leaving you little to nothing to pay your monthly living expenses with. This levy will continue to hit each paycheck until the levy is paid in full, or until the IRS issues a levy release.

A one-time levy is issued on self-employed individuals. A tax levy notice is sent out to all customers, contractors, insurance companies, vendors, clients, and contractors that may owe you money. These levies attach to any funds owed to you by the third party. For instance, if you are a contractor working on three different projects, the IRS may issue a one-time tax levy to each of these parties. They are then required to pay the IRS any funds owed to you, up to the amount of the levy, when they receive the levy. Failure for them to do so could result in the IRS coming after them to collect the tax debt.

An IRS bank levy is sent to banks where you have accounts. This tax levy can attach to any account that has your name on it. It may attach not only to your individual bank account but also to joint accounts and accounts that you sign on for minor children.

An IRS bank levy can attach to any funds in your account at the time the tax levy was received. The bank will freeze these funds and send them to the IRS within 21 days. It is very difficult to get the IRS to release a bank levy. Oftentimes, the IRS will not issue a levy release on the funds in your bank account. If they do agree to release the levy, you still have to get the levy release to the bank before the funds are sent to the IRS. As this is such a time-sensitive process, you need to act immediately once you receive a bank levy if you are to have any chance of getting it released.

Austin & Larson has a team of professionals and the means to negotiate IRS debt given your bank account tax levy status.

The best way to stop a wage levy is to prevent one from being issued in the first place. However, if the IRS has issued a wage levy against you, you need to get it released as soon as possible. Before the IRS will issue a tax levy release, you will have to meet their conditions to establish a resolution on your account. This may include filing back tax returns and providing your financial information. You will also have to show compliance for the current year. You may be able to get the levy partially released based on your collectability.

Once you have gotten to the point where the IRS is issuing paycheck levies, you need to seek professional representation to resolve your taxes and prevent the IRS from issuing any additional tax levies against you.

As soon as you receive any information from the IRS regarding a possible tax levy or garnishment, you should seek immediate IRS help from Austin & Larson Tax Resolution. We serve all Michigan taxpayers at 1-866-212-9011, with the objective of successful tax debt relief and settlement. Stop IRS garnishment now with our help. We are one of the best tax relief companies in Michigan. We care about securing a fresh start for you.