South Carolina Tax Attorney

QUESTION:

            I am self-employed as an independent contractor and my business is run as a sole-proprietorship.  Therefore, I receive a 1099 from the people I work for.  I recently recived a notice from the IRS stating that they were going to levy my wages.  Since I do not pay myself a monthly paycheck how can the IRS levy my wages? 

ANSWER:

            Since you are a sole proprietor, you are correct that the IRS technically cannot levy against your wages.  This is because you have no wages.  However, you are not getting away from collections that easily.  What the IRS does in situations like this is to send the levy notices to those companies and individuals you perform work for.  If you have submitted an invoice to those companies or individuals (meaning they owe you money) then they are required to send all the money they owe you to the IRS.  This is not good for you, because if you were just an employee, the IRS would leave you some money each week in your paycheck to live on, however in this situation, the IRS will take all of what you are due from your clients.  If you are receiving notices from the IRS threatening levy action, you need to take action immediately to prevent the levy from being sent out.  Call my office today to set up your free consultation to see how we can assist you with your IRS tax liability.  We also handle family court, real estate and probate matters. 

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