Bank Account Levy, Tax and Accounting Services

A levy, other than actual arrest, is the most serious IRS action. A levy is how the IRS takes money out of your bank account, seizes an asset, garnishes your wages, or dips into your Social Security Check. There are limitations on levies. The IRS does not take more than 15% of your Social Security Check and is supposed to leave you enough wages to survive.

However, unlike private companies, the IRS can levy you WITHOUT GOING TO COURT.

Usually, levies occur because taxpayers ignore IRS letters and do not get IRS Representation when they need it. Sometimes, taxpayers get lulled into a false sense of security by nasty IRS letters and levy threats, and then nothing happens. “What can they do to me? I don’t have the money to pay them” or “Let them do their worst. There is nothing I can do about it”. Then one day your bank account is gone.

If you have IRS debt, do not ignore IRS letters. It is prudent to read and handle all IRS letters. But levies are the most serious. And the most serious include the words “YOUR RIGHT TO A HEARING”. If you receive a Notice of Intent to Levy and YOUR RIGHT TO A HEARING, they can take your bank account without further warning, and probably will when your period to request a hearing expires.

The words “And Your Right to a Hearing” sound innocuous, perhaps even comforting. But they mean they plan to do something so bad that they must tell you your rights. It is analogous to being pulled over by the police. Not a big deal. But when the cop says “You have the right to remain silent. Anything you say can and will be used against you in a court of law. You have the right to an attorney…” you know it is serious. Your right to a hearing is IRS analogous to your Miranda rights!

An even worse levy is a wage levy (or garnishment). That’s when most of your paycheck goes to the IRS, and they don’t leave you enough to pay the bills, and this happens every week until the debt is paid.

If you are treated with a levy or have already been levied, contact Torchlight Tax and Accounting in Las Vegas Centarl immediately for a free consultation. You can fill out the free consultation form.

You can call us at 1-877-758-7797 or 702-463-1818 or email us at info@TorchlightTax.com. We can transfer your call to a branch office near you or help you directly from our central office.

Steps to Handle a Tax Levy Threat or Levy

  • We sit down with you and do a free consultation (in-person, on-line, or over the phone.)
  • We make a contract with you as to what we will do. This is our Engagement Letter.
  • We have you sign an IRS Form 2848 IRS Power of Attorney and pay a reasonable fee.
  • Then we pull all your IRS Records with our special tax program.
  • If a levy is threatened, we file a request for a Collection Due Process or Equivalent Hearing with the IRS. This stops the levy pending a Collection Due Process Hearing if done timely.
  • If a levy has already occurred, the money may still be in your bank and may be recoverable if we act fast.
  • If you have unfiled tax returns, we file them for you. This would be a separate fee.

  • Once all required unfiled tax returns are done, we have you fill out a financial questionnaire. This comes to us, not the IRS.
  • Our advanced software marries up your transcript data with your financial data. We review it and may ask you additional questions.
  • Based on the software and our expert analysis, we advise you on your best IRS Settlement Option. This completes your Tax Analysis.
  • We can then handle the underlying tax situation that cause the levy.

Possible IRS Resolutions:

The IRS has a lot of power. It is the Ultimate Collection Superpower. Mafia leg breakers may be brutal, but their resources and reach pale in comparison to the IRS.

But you are not powerless. You as a taxpayer have rights. There are a lot of safeguards in the law to protect you from unfair IRS actions. Your congressmen have put a lot of protection in the Tax Laws. Courts have made decisions that favor the taxpayer.

Here are some examples of possible IRS Resolutions:

  • Maybe the IRS Statute of Limitations on collections is almost up, and your tax liability goes away on a certain date. This date is called the CSED (Collection Status Expiration Date). The IRS has 10 years to collect after a return is filed. I had a client who had $40,000 dollar in tax debt from years ago. I told her in six months her IRS debt would disappear If nothing else happened. Six months later the debt disappeared!
  • Maybe you are eligible for an Offer in Compromise (OIC) where we make an offer to the IRS and if they accept it your tax debt is gone. You will have to keep filing and paying your taxes for five years, or the debt can come back. Still, not a bad deal!
  • Maybe you are eligible for Penalty Abatement. We get some (or all) of your penalties cancelled and can then work out an affordable payment plan.
  • Maybe we can get you onto a “full-pay” installment agreement. After we get all possible penalties abated, the IRS allows you to pay off your debt over several years. Penalties and interest accrue at a lower rate. It is called “full-pay” because the IRS calculates you will pay off the full amount before the Statute of Limitations expires. Often the IRS will accept 1/72 of your entire debt as a monthly payment amount. This is not guaranteed.
  • Maybe we can get you a Partial Pay Installment Agreement (PPIA). In this scenario, the IRS accepts a payment amount that will not pay off the debt in full before the IRS Statute of Limitations on Collections expires. On the expiration date, the IRS forgives the debt and that is that. However, the IRS can review the agreement (and usually does if your income goes up). If your income does not go up, most likely your debt will fall off on the expiration date. One of my clients, age 78 had a $1.8 million dollar tax debt. The IRS eventually accepted him on a $75 dollars per month PPIA. (There were lots of phone calls with the IRS in the interim. This is not a representation cycle you would want to have done on your own.)
  • Maybe we can get you approved for Currently Not Collectible (CNC) status. In this status, the IRS agrees you are not able to pay your back tax debt, and they put away your tax file and check back every couple years to see if you are making more money. Penalties and interest continue to accrue, but if nothing happens to change your CNC Status, the CSED eventually arrives, and your tax debt disappears.

Other than Penalty Abatement, any of the above actions approved should stop a levy.

An expert  tax advisor in Las Vegas Central I at Torchlight Tax and Accounting can work to get these levies released and help you get out of this terrible situation. At Torchlight Tax & Accounting in Las Vegas Central, we make sure your rights are respected and take action to handle you tax levy situation.

It is important to contact us rapidly. If you reach us early enough, we can take action to prevent the levy. If you have already been levied, we can possibly get some of the levied funds back and can prevent further levies.

Contact Torchlight Tax for a free consultation. Call us at 1-877-758-7797 or 702-463-1818 or email us at info@TorchlightTax.com. We can transfer your call to a branch office near you or help you directly from our central office.

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    When doing current taxes, we often come across missed tax savings from prior years. When this happens, the Internal Revenue Service allows you to amend your taxes and lower your tax liability. Whether you or your prior tax preparer missed a W-2 or 1099, a revised 1099. large charitable donations, or made some other error, amending your tax return can help you recover the money you are rightfully owed. When we find this situation, we will advise you on potential savings and amend the previously filed tax return.</p”>

    Sometimes, there may be a situation where a tax return could be amended, but it is too late to receive any benefit. Or maybe you made an error that was missed by the IRS that would have increased your tax liability. In some cases, it is prudent to file an amended return. But if it is not necessary and will not save you any money or decrease your risk, we will tell you not to bother. It is silly to amend a return to no advantage which is too old for the IRS to audit. Some firms might file a bunch of unnecessary tax returns and charge a fee. Sometimes a taxpayer himself might increase his tax liability by filing an unnecessary amendment that increases his tax liability. We will not do this.

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