The IRS says that I owe a balance that I do not, they have miscalculated and mis-applied money they owe me to years that I owed them nothing rather than apply the money they owe me to years that I owe them. I have refused to pay them till they accept the correct balance. Now I have notice of a levy. Will they stop the levy at this point if I make monthly payment arrangements with them? What is the best step to take at this point?
2007-06-23 11:36:04 · 7 answers · asked by jinsin77 1 in Business & Finance ➔ Personal Finance
No matter what anyone tells you, the IRS will levy your savings if they are convinced that you owe them, and if they do you're never going to get that money back. It is unwise to 'refuse' to pay them what they say you owe because they WILL come after you and make your life hell. They have the authority to attach any cash or valuables that you possess---your home, your car, your paychecks, your savings and investment accounts... and if you are married, they can take all of your spouse's income tax refund money, and any joint investment accounts you have, too. I've seen it happen. If they have to, they will spend $10,000 in federal resources to collect a $1000 tax debt, and YOU will end up paying the full cost of the action with interest and fines that are just not worth it.
Still, don't be so quick to work out any payment arrangements if you know for a fact that they made a mistake. If you do this they are going to charge you a penalty fee plus a fee to set up the payment arrangement. The best way to deal with them is to write them a letter explaining why you feel an error occured and send copies of your documents to prove your case. If you don't have any real proof then you don't have a case.
They are not known to be quick about resolving these things but they will investigate it if you give them a good reason. Its going to be better for you if you formally explain your situation to them so they can check it out and correct the mistake rather than to let them get their hands on your cash. Those guys can be merciless when it comes to collecting Uncle Sam's tax money and once they take it---its gone!
2007-06-23 16:31:43 · answer #1 · answered by webhead28 6 · 0⤊ 0⤋
An IRS levy on your bank account would take everything that was there when the levy arrived. It would not take a deposit made an hour later. IRS could also levy on your salary, something that you would find even less fun. You need to deal with the matter immediately so you can head off a levy. If you can pay about 2% of the balance every month, IRS will let you do that without any hassle. If you can manage that, it will evaluate what you can do based on your individual circumstances. Whatever that is it is better than what you can expect otherwise.
2016-05-18 21:35:27 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You are out of luck. As a former IRS employee, I can tell you that many notices were sent out prior to the levy action. It was during that period that you should have taken action to avoid the levy. At this point, your only hope is contacting the IRS and asking to speak to a taxpayer advocate. If they cannot assist you, you have to decide if it is cheaper to pay up or hire a tax attorney.
2007-06-23 11:42:54 · answer #3 · answered by David G 3 · 1⤊ 0⤋
File a slow pay motion before the court. You can do this yourself. Just go to the court that issued the levy, and ask the court clerk for the paperwork, then pay the fee. When you get to see the judge, they will work out a payment schedule that is palatable for your budget. The IRS, will then be compelled to release your accounts, and go by what the judge says.
HTH
2007-06-23 11:47:32 · answer #4 · answered by Edward B 5 · 0⤊ 1⤋
The only prayer is to take them to court. If it has gotten to the point of a levy, and you can't even state EXACTLY what they did wrong, that won't help.
Edward B: NO court issued the levy. The IRS has the authority to do that on their own.
2007-06-23 14:38:59 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
You might need to go into the office or call them to work out a payment plan. Do a offer in compromise to pay off the debt after you speak with them. Again, you might be able to work out a payment plan. Call them right now!
2007-06-23 11:45:24 · answer #6 · answered by ummmm 2 · 0⤊ 0⤋
I would call any accountants that you know and maybe an attorney but I'd ask an accountant first for some advice
2007-06-23 11:43:32 · answer #7 · answered by sweets 6 · 0⤊ 0⤋