IRS Collections: Liens and Levies

Written by Peter Tran

June 27, 2017

as the saying goes “The Taxman Cometh.”  Step by step he approaches: Hard-solED shoes slapping pavement, a trench-coat spotlighting shadows.  Penalties and interest mount as he searches for those who have not filED returns and those who have underpaid their taxes.  There are many ways he can find you.  Maybe an amount reportED on a […]

Joy is for the individuals who plan well and seek after. A significant among us have been demonstrated the individuals who have genuine dream to live for likely REALIZE IT. It is just the individual pursuing the DREAM days and night until achievement. There is an expression of proficiency a head of you. Steps and obstructions from the outset appear to be enormous. Be that as it may, just for certain occasions those troublesome advances and difficulties are so natural execution for you. There are too a lot of instruments including VISUALIZATIONS and helps are around you. Pete Tran is here my adored. These are the devices to understand ANY of your HIGH DREAMS come True. I went additional miles for you. It I a take for you. They are the 'Enchantment WONDERS" you can call on. Happiness will be with you. Worldwide has improved numerous perspectives this season of return. Do you recall.. these means well? It will be my actual satisfaction too!

Found great life changing solutions

the saying goes “The Taxman Cometh.”  Step by step he approaches: Hard-soled shoes slapping pavemt, a trch-coat spotlighting shadows.  Palties and interest mount he searches for those who have not filed returns and those who have underpaid their taxes.  There are many ways he can find you.  Maybe an amount reported on a W2 or 1099 w missing from a tax return.  Maybe a ch-paying contractor got audited and had to substantiate his expses.  Maybe a taxpayer consisttly pays his mortgage but repo very little income on his tax return.  It really doesn’t matter how he finds you.  Once he does, you’re pulled into the IRS collection process. 

Today, I will discuss the bcs of a tax sessmt and two of the tools used by the IRS to collect back taxes:  tax lis and levies.  My goal is to provide those facing “The Taxman” with an idea of what to expect wh they ter the IRS collection process.   

sessmt: The term “sessmt” simply means the IRS h determined that a tax is due.  Once an sessmt h be made, the IRS gerally h t years to collect the taxes due.  An sessmt occurs most commonly on the date a tax return is filed.  If a return is not filed the IRS may use its financial reporting to file a return for the taxpayers bed on received from employers (W2s), vdors (1099-misc), banks (1099-Int), and brokers (1099-div and 1099-B).  This return is called a Substitute for Return (SFR).  An sessmt made with an SFR is nearly always to the taxpayer’s disadvantage it is bed primarily on income that is reported by employers, banks, brokers, etc. and not by the taxpayers.  such, the return will lack most deductions, exemptions, and credits. 

Once sessed, the IRS h two bc tools to collect pt due taxes: the li and the levy. 

Li: A li is a claim to all property a taxpayer owns at the time or after a li arises.  Lis arise automatically wh taxes remain unpaid t days after the IRS sds its first notice of taxes due and demands paymt.  If the tax due exceeds ,000 the IRS may file a formal tax li, notifying the public of its claim to a taxpayer’s property (in February 2011 the IRS announced it w increng the formal li threshold from $5,000 to ,000).  A li that is formally filed will negatively affect the taxpayer’s credit, harming their ability to buy, sell and refinance properties.  A tax li remains in effect until the tax is paid, the collection statute expires, or the IRS removes the li.

Levy: The second tool the IRS uses to collect pt due tax is the levy.  A levy occurs wh the IRS physically takes a taxpayer’s property to pay pt due taxes.  The IRS can levy both income and property including wages, paymts from customers, retiremt income, social security paymts, state and refunds, savings and checking accounts, s, , or other valuables. 

Although the filing of a tax li may be more-or-less automatic, the IRS must follow certain procedures before it can levy a taxpayer’s property.  The IRS will sd a 30-day notice that it intds to levy a taxpayer’s sets.  Wh this notice is received, the taxpayer still h the opportunity to make paymt, ter into an installmt agreemt, or appeal the levy if they believe the amount due is incorrect or improperly issued.  This appeal must be made within 30 days of receiving the notice of intt to levy.  An appeal can still be made after the 30 day deadline h psed, but the taxpayer will be bound by the decision and lose their right to further appeals.

Worried that you may not be in compliance with form 1099-MISC? Check out our 1099-MISC Basics course to get all of your compliance questions answered.

This article h provided a very bc outline of IRS collection process.  It h not discussed more specific details including IRS timelines, specific IRS notices regarding pt due taxes, the appeal process, or circumstances under which the IRS may remove a li or forego a levy.  always, if you find yourself caught up in the IRS’s collection process or would like sistance with any tax situation, plee feel free to contact our office at (304) 267-2594.

amzn_soc_placemt = “adunit0”;
amzn_soc_able_interest_ads = “true”;
amzn_soc_tracking_id = “acallresite-20”;
amzn_soc_ad_mode = “auto”;
amzn_soc_ad_type = “smart”;
amzn_soc_marketplace = “amazon”;
amzn_soc_region = “US”;
amzn_soc_linkid = “01358b91be20242b95628fb5fe5ad2ab”;
amzn_soc_fallback_mode = {“type”:”search”,”value”:”Today Deals”};
amzn_soc_default_category = “All”;
amzn_soc_emphze_categories = “1064954”;
Source

How To Really REALIZE DREAMS COME TRUE?

Happiness is for those who plan well and pursue. A profound among us have been proven those who have true dream to live for likely REALIZED IT. It is just simply the person working toward the DREAM days and night until accomplishment. There is a phrase of efficiency a head of you. Steps and obstacles at first seem tremendous. However, just with some times those difficult steps and challenges are so easy performance for you. There are also plenty of tools including VISUALIZATIONS and helps are around you.

COVID-19 – Effective Tips For You!

COVID-19
HOW TO DEFEAT DEADLY CORONAVIRUS EVERY TIME?

The Greatest Virus Surviving 10 Steps Guide

Free Risks Helps & COVID-19 Solutions

Here Are Great Free Tips For You.

Please Order If See Anything You Need? Mutual Reciprocal & Have Great Days!

 

Amazon Best Sellers

How To Really REALIZE DREAMS COME TRUE?

Congratulations

COVID-19 – Effective Tips For You!

COVID-19
HOW TO DEFEAT DEADLY CORONAVIRUS EVERY TIME?

The Greatest Virus Surviving 10 Steps Guide

Free Risks Helps & COVID-19 Solutions

Here Are Great Free Tips For You.

Please Order If See Anything You Need? Mutual Reciprocal & Have Great Days!

 

Amazon Best Sellers

You May Also Like…

0 Comments

Submit a Comment