IRS question?

Question

If the IRS is already garnishing wages from my husband's check every week for back taxes owed, is it legal/typical for them to take money out of our bank account as well?
They've done so without any warning today. We've received no statement of this, and furthermore, they withdrew large sums of money from my account twice in one day, even though the money was clearly not available, causing a negative balance!
My husband has called the IRS and is on hold for over 40 minutes at a time while no one is willing to give him a straight answer as to what else we can do.
If this has happened to anyone, how often do they take the money (daily? weekly?) if so, is it typical for them to do so numerous times a day?

We've made a payment agreement a number of years ago on THEIR terms and have followed faithfully, missing only one month due to our cross-country move, but even doubled-up payments the following month. I am just so frustrated.

Any advice would be greatly appreciated.

Thx!

But that's it... I thought we WERE cooperating by paying them the agreed amount of $60 per week since [Feb.] 2002. As of July of 2006, they started to garnish additional funds directly from his paycheck weekly. In these two incidences, we were notified and upon which had to sign paperwork. We (and our bank) were not notified of this latest measure they've decided to take.

Is it typical for them to take BOTH measures into effect? the garnishments AND the levy? Also... we are STILL paying $60 a week! I just don't understand.

We have five kids, so the refund for the children go straight back to the government toward his balance. But with penalties and interest... I don't know if well ever see the light at the end of this tunnel. =/

Answer 1

Your bank account was levied against due to non payment of Federal Taxes, this is not something that they do on a whim. If you had a payment arrangement that you defaulted on and did not contacting them, They have a legal write to do that because you were not paying on past taxes owed.
Your account was submitted to the ACS unit, the automated collections system.
You need to work with the IRS to straighten out the deliquent balance that you owe.
Call the IRS at 1-800-829-1040
or the Taxpayer Advocates Office 1- 877-777-4778

Answer 2

No, this is not legal (and even if they've got the garnishment orders, what they're doing is legal but is still outside the rules). Federal law is very clear on this point: Your bank AND YOU MUST be notified IN WRITING 40 days prior to the planned withdrawal, for obvious reasons - so you don't go Insufficient Funds.

Their pre-existing payment plan with you does not change things. They have an agreement to take pre-planned payments - not large unplanned garnishments.

No, even if what they're doing is not illegal, it is certainly outside the rules (this happened to my mom and she fought back - and won).

You're going to need a lawyer. If you're hard up (or at least, broke, even if you make good money) chances are you can find a lawyer that will do this for you for free (or for very cheap). Lawyers like these kinds of cases because it helps them build careers.

Your lawyer will be able to tell you specifically what the IRS has done wrong, which rules they broke, and what you can do about it, but you need to ACT NOW - the rules for cases like these don't allow you do anything about it if you haven't acted sometimes within DAYS of the original incident.

Answer 3

You need professional help. Go get it. The IRS seems to do exactly as they please. If you get through in an hour, you are having a good day. Also know anything they SAY to you is not something they can be held to. You must have it in writing and from the proper people. And in my experience one person will tell you one thing and it will not be correct and another will tell you something else-also incorrect. Another thought. . .one client I have has had trouble way in the past and a small amount was due. She is constantly dunned for the same amount and has ended up paying that amount three times because it is cheaper to just pay than hire a professional to try to straighten it out each time. The IRS is a mess. You know that old expression-Those that can do, those that can't work for the IRS.

Answer 4

Yes, that's very typical. And all quite legal.

However, such drastic action by the IRS is normally reserved for taxpayers who fail to or refuse to cooperate. You and your husband have been ignoring the IRS for a while or have not kept to the terms of a payment plan.

My advice: Consult with a tax pro -- a CPA or tax attorney, NOT one of the storefront tax prep mills! Try to work out a payment plan or offer in kind with the IRS and then stick to it!

If you don't get a handle on this quickly, they can take pretty much everything you own to settle the debt. Home, cars, the lot.

Answer 5

That doesn't sound right. If you made an arrangement with the IRS to garnish a wage, they shouldn't have access to your bank account. Verify with your bank tomorrow the transaction and let them know you think this may not be legitimate. The party initiating the transaction will have to justify to the bank the debits to your account. In turn the bank will give the same information.

Answer 6

Thank you very much for posting this statement. I am sure that there are a lot of people, like me, who have been researching this topic for a few days now.

Answer 7

This has happened to my mother several times.

There is really nothing you can do short of paying for everything in cash and not keeping any money in your bank account.