DELINQUENT PAYROLL TAXES

The IRS is very aggressive in their collection attempts for past due payroll taxes. The penalties assessed on delinquent payroll tax deposits or filings can dramatically increase the total amount owed in a matter of months.

How you answer the first five questions asked by the IRS may determine whether you stay in business or are liquidated by the IRS.

You should avoid meeting with any IRS representatives regarding payroll taxes until you have met with a professional to discuss your options. 

IRS LEVY (sometimes called a lien)

An IRS levy is the actual action taken by the IRS to collect taxes.

BANK LEVY

The IRS can issue a bank levy to obtain your cash in savings and checking accounts.

When the IRS levies a bank account, the levy is only for the particular day the levy is received by the bank.

The bank is required to remove whatever amount is available in your account that day (up to the amount of the IRS levy ) and send it to the IRS in 21 days unless notified otherwise by the IRS.

This type of levy does not effect any future deposits made into your bank account unless the IRS issues another Bank Account Levy

WAGE GARNISHMENT

The IRS can levy your wages or accounts receivable.

An IRS Wage Levy is different from a Bank Levy. Wage levies are filed with your employer and remain in effect until the IRS notifies the employer that the wage levy has been released.

Most wage levies take so much money from the taxpayer's paycheck that the taxpayer doesn't have enough money to live on.

CONCLUSION

Levies should be avoided at all costs and are usually the result of poor or no communication with the IRS.  

The person, company, or institution that is served the levy must comply or face their own IRS problems. The additional paperwork this person, company or institution is faced with to comply with the levy, usually causes the taxpayer's relationship to suffer with the person being levied.

If you, or someone you know, is experiencing these actions, please contact us today.  We CAN help!