Taxes Attorneys

A tax attorney can assist you in dealing with an IRS bank levy.  Contact a tax debt attorney before it gets too late, you should not take on the IRS alone.

Tax Debt Help Needed - How Can I Stop An IRS Bank Levy?

The IRS does give you ample warning that they intend to levy your bank account. You undoubtedly received the notice and demand for payment from the IRS which included the amount you owed in back taxes. You probably did not contact the IRS at that time, and that was very important. The next communication you received was called the ‘Final Notice’ which did express their Intent to Levy and also included a notice of your right to a hearing after the levy has been placed. That final notice arrives 30 days before the IRS actually talks with your bank and proceeds with freezing your accounts. It comes in the form of a certified letter directly from the IRS. If you are now facing the impending crisis of the IRS bank levy, then you have obviously procrastinated the handling of your IRS past due tax problem (probably because you did not have the money to pay the back taxes). All is not lost and it is still possible to stop the IRS levy. However, the time to act is right now. You need fast, professional tax debt help and you have just 21 days to get this handled, and the clock is counting down each day!

An IRS levy is clearly one of the most powerful collection tools in the IRS arsenal and the IRS bank levy can be incredibly frightening when the freeze is actually implemented. Once the IRS freezes your bank account, you have no access to your funds. They are waiting for the ‘21 days to expire’ before they withdraw these funds to pay your delinquent tax debt bill. Any personal bills that you have that need to be paid in this timeframe will not get paid. In fact, you will probably be hit with insufficient funds fees and the refusal of any preset automated debits you have set up on your account to pay for goods/services. Even the newly deposited funds that come in as paycheck direct deposits will be frozen once they are received by your bank! The IRS intends to be paid the back tax money that you owe, one way or the other. Keep in mind that your bank is required by law to comply with the IRS bank levy and hold all funds that have been deposited into your bank accounts. They will not be able to provide you with any tax debt help in this matter.

During the 21 day period, it is now prudent to seek expert IRS tax debt help so that a tax attorney or tax specialist is able to negotiate with the IRS to release the funds. Unless an IRS bank levy release is obtained, once the 21 day period has expired, the bank sends the money to the IRS and you will never get it back. You may also consider contacting the Taxpayers Advocate in your area. This would require you to complete paperwork to prove economic hardship in hopes of having the IRS bank levy ‘lifted’ or released. Time is of the essence and your financial future does hang in the balance.

Other Important Things You Need to Know About an IRS Levy:

How does the IRS know where I bank? The IRS knows your banks accounts from the 1099’s that are filed every year with your tax returns. Even if your tax returns are unfiled, they have still received those 1099’s from the financial institutions themselves.

What other accounts might be affected? Certificates of Deposit and any account where you have your name and social security number listed. Keep in mind that if you have joint accounts for whatever reason, with family members or even friends, those will be subject to the IRS bank levy also.

What types of accounts are excluded from an IRS Levy? Life Insurance, Worker’s Compensation, Benefits received from the Department of Veteran’s Affairs, and Scholarships or Grants.

Will the IRS levy both my bank account and my wages too? The IRS does not typically levy both your bank accounts and your wages. They intend to be paid for your delinquent taxes, but they must leave you just enough to live on, and while they ‘can’ enforce an IRS levy on your wages and your bank accounts, they don’t tend to collect past due taxes in this manner.

By: mansi gupta

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A tax attorney can help explain to you the new tax laws for 2009, as well as the myriad of other tax laws that may apply to your particular situation when dealing with income, property or other taxes. 

New Tax Laws For 2009

Even though they are being levied by all forms of government since many centuries, taxes have hardly been popular. The very idea of taking a portion of something you legitimately earn or own may make you rebellious. However, all of us know that we have to pay taxes in order to have the infrastructures built, which are so necessary for our livelihood. Also, governments need money for a lot of other investments into areas such as scientific researches, defense, old age pension and care for the poor and disabled.

However, while everybody ought to pay their taxes, it is foolish not to explore legitimate ways to save taxes, which the government itself offers to the all citizens. There are a number of ways you can save your taxes. The most important thing is to have a thorough knowledge of the tax laws of your country. Tax planning, tax filing, bookkeeping, auditing, payroll management are some aspects of tax preparation which you can do yourself of can get the service of a reliable and certified public accountant agency.

 US tax laws can be quite complicated for under these laws, you may have to make payments to all four levels of the US government such as the local, regional, state and federal level. The federal tax system is widely criticized for being extremely complex and completely outdated. In order to file federal tax for an individual, a person has to submit a Form 1040 to the Internal Revenue Service (IRS) in the United States.

There is one major change to the tax laws that has been introduced in the year 2008, which will benefit the tax-payers in 2009 also. In 2008 a new tax law called the Economic Stimulus Act (ESA) has been introduced, which will give the qualified individuals who have completed tax filing for the year 2007, tax rebates in advance via rebate checks. The qualifying income is at least $3,000 for the year 2007. Other than this, it has provisions that will encourage businesses to invest into new machineries.

The tax changes that were announced for the year 2009 are going to benefit a large number of tax-payers, especially those within higher income brackets. From 1st January 2009 onwards, the basic amount of exemption on federal estate tax increased to $3.5 million. It is going to result in huge tax saving for large real estate owners. Another changes is the increase in the maximum amount, which a tax-saver can contribute to a 401(k) plan. Many tax-payers and non-residential US citizens now will be able to save more of their payments thanks to this change.

The gift-tax exclusion in 2009 has been increased to $13,000 per year. Therefore, you can donate up to $13,000 in a year without paying taxes for it and in the process, reduce your taxable income size to some extent. The maximum amount of earnings that is subjected to Social Security taxes rose to $106,800. Still, a lot of employees will have to pay more Social Security taxes because of the raises in their salaries.

By: Elle Wood

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