levy: What Assets Can the IRS Levy?
- 02/21/23 10:59 AM
An IRS Levy can be issued against various types of property, including bank accounts, wages, vehicles, real estate, and other personal property. Once the IRS issues a levy, it will typically freeze the assets or property, and then seize or sell them to satisfy the debt. It's important to note that the IRS must follow specific procedures and provide proper notice before issuing a levy. Taxpayers have the right to appeal the levy and may be able to negotiate a payment plan or settlement with the IRS to avoid the levy. If the IRS determines that the levy is causing an immediate financial … (12 comments)
levy: 13 Assets the IRS Cannot Seize
- 02/13/23 07:24 PM
IRS Levy. These words evoke fear. Fear of losing money in your bank account, wages, your house, your car, and other assets. However, the IRS cannot seize any asset they want. I.R.C. § 6334(a) lists assets that the IRS is not allowed to levy. Wearing Apparel And School Books Fuel, Provisions, Furniture, And Personal Effects Books And Tools Of A Trade, Business, Or Profession Unemployment Benefits Undelivered Mail Certain Annuity And Pension Payments Workmen's Compensation Judgments For Support Of Minor Children Minimum Exemption For Wages, Salary, And Other Income Certain Service-Connected Disability Payments Certain Public Assistance Payments Assistance Under Job Training Partnership … (8 comments)
levy: How Levies Work
- 10/31/22 02:58 PM
How a levy works depends on what kind of levy it is. A Regular Levy seizes what the taxpayer owns at the moment the levy is received. There are two common Regular Levies that are used. A bank levy and the other is a levy sent to 3rd parties that have paid the taxpayer in the past and reported those payments to the government. A Regular Levy can be used more than once so don't think that if you have been levied you won't be again. A Continuing Levy stays in place and continues to seize what the taxpayer earns until the IRS … (13 comments)
levy: What is a Levy?
- 10/13/22 10:59 AM
We can see from Tom's story that a Levy can cause many problems: Financial Stress Loss of Sleep Contention in relationships Fear Just to name a few. But exactly what is a levy?A levy is an actual seizure of taxpayers' property to pay a tax debt. Don't worry, the IRS cannot just levy a taxpayer's property at a whim. A levy can only be issued after the IRS has sent notices and the taxpayer has not contacted the IRS or has not set up or stopped making payments on an installment agreement. The focus of our practice is helping individuals and businesses … (9 comments)
levy: What Happened To Tom Part 2
- 10/11/22 09:22 AM
In Part 1 we saw that Tom had ignored his problem of owing around $95,000 to the IRS so his bank account was levied. Let's take a look at what happened. When the levy reached the bank, Tom had $5,300 in checking and the levy took all of it. There was a deposit of $2,500 made the day after, but the levy did not take those funds. Why? A regular levy only seizes what the taxpayer owns at the moment the levy is received. Since there was only $5,300 in the bank at the time the bank received the levy, that is all … (21 comments)
levy: What Happened To Tom Part 1
- 10/10/22 01:15 PM
Tom calls me on 4/15 and was hysterical! His bank account was levied. And if that wasn't bad enough, he has been hiding the IRS issue from his spouse and checks are going to bounce. Tom pleaded with me to help him with the IRS problem and save his marriage. The good news is if we act quick enough we may be able to get the money back. How did Tom end up in this situation? It all started with Tom not having the money to pay his taxes for one year. He hoped that the IRS would be too overloaded to notice. … (19 comments)
levy: Will you be hearing from the IRS?
- 06/11/21 12:07 PM
If you owe back taxes, you may be hearing from the IRS very soon. The focus of my practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. I also like to educate taxpayers as knowledge is power. Today's topic is IMPORTANT!
On 6/15/21 the IRS is going to start sending out millions of Letters 11, Notice of Intent to Levy, to taxpayers who owe back taxes. If the IRS does not hear from the taxpayer in 45 days levy notices will follow.
What can you do if you receive a Letter … (4 comments)
levy: You can avoid a Federal Tax Levy
- 01/12/21 02:43 PM
I don't like to hear of taxpayers having federal levies placed on their assets. That is why I work to educate taxpayers. Today's post explains how taxpayers can avoid a Federal Tax Levy. It is very simple: Don't avoid the IRS and deal with the problem. If a taxpayer doesn't want to deal with the IRS, hire a specialist to communicate in your place. However, the taxpayer needs to work with the specialist and get the needed information to them quickly. See, it isn't hard. Below are the steps to follow to avoid a Federal Tax Levy: 1. Contact the IRS and see what it … (2 comments)
levy: You have to be joking? My Retirement Account can be levied?
- 01/04/21 05:32 PM
Yes, it is true. The IRS MAY be able to put a levy on your retirement account. The IRS basically "steps in the shoes of the taxpayer: If the taxpayer can liquidate their retirement account, even with an early withdrawal penalty, then the IRS can reach it by a levy. If the taxpayer can't then the IRS can't either. If the plan doesn't allow employees to liquidate the asset themselves, then the IRS cannot levy the account either. Most self-directed IRAs can be levied. 401(k) and 403(b) plans can be levied only if the employees have the right under the plan to … (11 comments)
levy: The levy that seems to never end
- 01/04/21 05:07 PM
Today's post concerns Continuing Levies. A continuing levy operates as the names suggest, it is ongoing until it is released by the IRS or fully paid. A continuing levy seizes what the taxpayer earns and is usually used on wages and routinely paid commissions. A continuing levy causes economic hardship for taxpayers as it seizes everything above the taxpayer's standard deduction amount. Let's take a look at how this works. The standard deduction for a single taxpayer was $12,400 for 2020. The IRS will take the standard deduction and divide it by the pay periods. If I received $60,000 a year as … (0 comments)
levy: There Are Different Types of Levies?
- 12/31/20 01:04 PM
Here at Number Cruncher LLC, I like to educate taxpayers with the hope that it will help them with their tax situation, businesses' financials, and thus improving their lives. My hope with this blog is to help taxpayers see it is not good to ignore the IRS as they have methods to make your life hard to get you to pay the tax that is owed them. However, levies are a last-ditch effort, not the first step. The IRS gives plenty of notice and opportunities for taxpayers to work with them before they resort to a levy. There are 2 types of … (1 comments)
levy: LEVY! Now the IRS has your attention
- 12/24/20 11:12 AM
LEVY! This word has the effect the IRS is looking for, your attention! The IRS will have sent many notices about a back tax debt with no response from the taxpayer or the taxpayer is not sticking to a payment plan. After Letter 11 is sent with no response, the IRS will levy the taxpayer's assets. A Notice of Levy will be issued to the instituion or person holding property of the taxpayer with copies being sent to the taxpayer. Banks will hold onto funds in your bank account for 21 before they release them to the IRS. If you contact the IRS … (3 comments)
An IRS Levy can be issued against various types of property, including bank accounts, wages, vehicles, real estate, and other personal property. Once the IRS issues a levy, it will typically freeze the assets or property, and then seize or sell them to satisfy the debt.
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