There are a lot of different types of problems that we encounter every day as we assist our clients with their IRS problems. They include: unfiled returns, filed but unpaid returns, payroll tax issues, trust fund recovery penalty issues, wage or bank garnishments, excessive penalties, IRS audits and more. No matter what your IRS problem is, there are ways you can work things out with the IRS. There are many different options and ways to resolve and help your IRS problems and each resolution will depend on your own personal financial situation. You can contact me through my contact form for more information about your IRS problem.
I don’t do a lot of posts like this, but every now and then maybe it’s helpful for a short commercial so you can see the big picture of what types of things we can help with and what your options are rather than the details of law, etc.
I wrote a short post a few months ago about how the federal stimulus package (i.e. rebate checks) would effect your IRS tax liabilities. Since then, I have received a number of queries on this IRS Problem Solving Blog about how the stimulus checks will be effected by an installment agreement you already have with the IRS.
As a brief review, an installment agreement is a contract (agreement) between the taxpayer and the IRS where the taxpayer agrees to pay a certain amount of money each month to the IRS in order to resolve their debt including penalties and interest.
While having an installment agreement set up may seem like you have “worked out” your tax problems with the IRS, the IRS does not look at it that way. In their eyes, you still have an outstanding balance due to them and therefore, they will keep the entire rebate that you are entitled to.
I have several clients who have come in to discuss their tax problems and told me that if the IRS would not release their wage garnishment immediately they would just quit their job. Let me tell you that is not the solution. While it is painful to have the IRS taking money from you right now, it is possible, and often times very easy, to get the IRS to release their levy with just a little work. Of course, this depends on your specific situation, but there are ways for every one to get the IRS off of their back.
Depending on your current financial situation, you may be able to settle your tax liability for much less than what the IRS says you owe. The IRS considers your income, expenses and the value of the equity you have in your assets to determine whether you would qualify for an offer in compromise. A skilled tax professional can help you properly present your case to the IRS to get the best consideration. Also, you should can look into several other opportunities to have the IRS release your wage levy. Sometimes, it is easier to set up a payment plan where you get to determine how much you pay each month rather than the IRS dictating how much they are going to take from your paycheck.
I would not recommend that you quit your job in order to stop the wage levy. Don’t let the threat of what might happen control your life and cause you to make a drastic decision. Look into all of your options with the IRS by contacting a tax professional.
If you have a tax problem, whether it is a levy, wage garnishment, or you just owe a lot of money and you want to get the IRS off of your back, you can contact me or check out my new e-book Emergency Tactics to Stop the IRS from Taking Your Paycheck. There are many solutions and ways he can help take care of your IRS debt.
Just in case you’re interested in some “lighter” reading, you can check out my personal blog over at http://www.TrippAtkins.com. There’s a lot more about me, and you can follow me on Twitter (are you twittering?).
I recently received the following comment on AtkinsSC.com about the tax rebate checks:
my father has alredy recived his stimulus check and his last too digits are past mine and my husbands we have direct deposit and still havent seen our stimulus do you think weve been skiped???? we both got notices in the mail at different addresses because this year was our first year fileing together do you have any advice about what we sould do? or how to find out why we were skipped in the number sequence……. thank
You can find my response here.
I read a post on Taxgirl.com regarding practices by tax preparation companies like Refund Advance Loans that will prevent taxpayers from receiving direct deposit rebates and requires them to receive their rebate by paper check in a few weeks. Interesting…
Question: The IRS accepted an offer in compromise for my tax liability last year and I paid it in full before the end of the deadline. I received a letter that stated my offer in compromise was paid. Since then, I have filed my returns on time and kept up with my estimated payments so I wouldn’t get in any more trouble. Last week, I received an “Urgent” letter from the IRS about taxes that I owe for one of the years that was included in my offer in compromise. What do I do?
Answer: I would recommend two potential courses of action for you since your offer in compromise was accepted. First, I would send a letter to the IRS office that sent you the Urgent notice stating that their records are inaccurate and they accepted an offer in compromise for this tax year. I would also enclose a copy of the offer in compromise acceptance letter.
Next, if you continue to receive collection letters from the IRS for this tax period or others that were included in the offer in compromise, you should write a letter to the taxpayer advocate service basically telling them the same things: you had an offer in compromise accepted, you have a letter that says so, you have a letter that says you paid the offer in compromise in full and you would like the taxpayer advocate to help you to get the IRS to correct their records.
A lot of times, the letters are automated, so it may be that the IRS records are just in limbo and have not been updated yet. So if you continue to receive letters, you should definitely take action so the IRS doesn’t accidentally levy your wages or take some other collection action that could be harmful to you.