Help with IRS Collections & Enforcement
If you owe back taxes the IRS has various tools to collect. Taxpayers who do not respond to tax notices will eventually be placed into collections. The IRS may Levy your property to satisfy a tax debt. The most common types of tax levies are: (1) Wage Levies i.e. Wage Garnishments and (2) Bank Levies.
The Internal Revenue Code allows for continuous levies with respect to wages, salaries and certain other types of property. This means that a levy on wages and salaries continuously attaches until it is released. The IRS may not garnish your entire paycheck and a certain amount of your pay check is exempt from levy. The exempt amount is based on a standard deduction and claimed number of dependents, for further information see, publication 1494. The IRS may levy a large portion of your pay check in order to satisfy your outstanding taxes. In fact, many taxpayers report not being able to survive on the amount of money exempted from levy and that the levy is creates an “economic hardship” and should be released.
When the levy is on a bank, credit union or similar account, the Internal Revenue Code provides for a 21-day waiting period before the bank must comply with the levy. The waiting period allows the taxpayer time to contact the IRS and arrange to pay the tax or notify the IRS of errors in the levy. If a release of levy from the IRS is not received within 21 days of receipt of the levy, funds in the account as of the date and time the levy was received must be sent to the IRS.
Taxpayers Rights (in IRS Collections)
IRS Publication 594 illustrates the entire IRS Collection Process. The most common way to prevent a levy or at least delay it is to file a Collection Due Process Hearing. A Collection Due Process hearing (“CDP”) is the taxpayers chance to challenge the appropriateness of the proposed collection actions and offer collection alternatives. Additionally, the IRS will cease collection enforcement once a CDP hearing has been timely requested.
We are Here to Help you!
Garden City resident Peter Alizio is a tax lawyer and certified public accountant that will get you out of active collections by setting up an Installment Agreement between you and the IRS. Alizio Law, PLLC is a Nassau County, Long Island law firm that regularly represents taxpayers with disputes with the IRS and NYSDTF.
Our Services Include:
- Entity Formation
- Tax Return Preparation
- Unfiled and Delinquent Tax Returns
- U.S. Tax Court
- Audit Representation
- Audit Reconsideration
- IRS Appeals IRS Collections
- IRS Offer in Compromise
- IRS Liens & Levies
- NYS Voluntary Disclosure Program
- Audit Representation
- NYSDTF – Civil Enforcement
- New York Tax Warrants
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If you need assistance with a tax matter, please contact us at (212) 520-2906.