If someone hasn't paid their taxes and the IRS put a levy on your bank account but the amount in the bank still wasn't enough, can that person still call the IRS and make payment arrangements for the back taxes or they'll just keep on taking all the money in the bank account unitl all taxes are paid? This of course needs to be paid but how flexible can the IRS be if the person who owes the taxes is on a permanent disability and no means to survive except for the money she gets from SDI which is now being taken by the IRS from her bank account. She doesn't get much from SDI and it will take several months for her to pay the IRS even if they take all the money from the SDI.
2007-11-03 19:27:21 · 13 answers · asked by ods 2 in Business & Finance ➔ Taxes ➔ United States
DRK1946 you are so correct. The reason why there were no notices because they mailing it to the wrong address and they are now reversing the levy on the bank account and putting back all the money.
2007-11-06 09:25:16 · update #1
The IRS 95% of the time take the money illegally without a court order .Welcome to NAZIA AMERICAAsk to see a court order then sue the bank and I will bet you they can not produce one .If anyone saids the IRS has a right to they are a liar .Does consitutional right mean anything to you ?
2007-11-04 10:42:45 · answer #1 · answered by DRK1946 2 · 0⤊ 1⤋
The person you are describing has procrastinated and ignored the government. As you can see the government doesn’t like to be ignored. Levy’s were never intended to pay your tax debt, they are to make it painful enough that you won't ignore the government and will set up a payment plan.
There are 2 types of levy’s, a bank levy and a continuous wage levy. After a levy notice is served to an employer or financial institution you have 21 days to make an agreement to the IRS or pay the taxes in full; if that doesn’t happen then the levy takes effect. A bank levy is a one time deal, if there aren’t enough funds to satisfy the levy the IRS has to go thru the levy process again to serve another levy. With a continuous wage levy the levy stays in effect until you make an agreement to pay or the tax is paid in full. With a wage levy they won't take all your money each pay period.
IRS will set up a payment to pay with you, and they are somewhat flexable. It all depends on how much you owe and your income. If what you say is true and you truly can’t afford to pay, fill out the collection information statement and take it to your local IRS office, make sure you take your last 3 month bank statements.
This could be handled by calling toll free, but it might be better for you to have a face to face contact with the IRS. See the links below.
2007-11-04 03:30:06 · answer #2 · answered by Charlie & Angie G 4 · 1⤊ 0⤋
You have a problem that might require the assistance of an attorney, but again there is acost to that. I am a accounting major and my professors tell me all the time that the IRS does not bargain and will collect the money in way possible.
Why dont you try calling them and see if they will work out something it wont hurt you. there are also local irs offices, if there is one close to you, see if they can be of any assistance.
I would personally advice that if the irs is going to collect there money that this person put it on a credit card payment and slowly pay off the credit card over a longer period of time. The irs charges a riciculous interest rate.
I hope that I was atleast somewhat of a help to you
2007-11-03 19:34:19 · answer #3 · answered by hsingh86 2 · 1⤊ 0⤋
For a person on disability, waiting until a levy has been made on a bank account shows extreme procrastination. If that is the only income and there are no other assets of substance, the account will probably be reported currently not collectible if all the facts are communicated to IRS.
2007-11-04 00:08:18 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Call the IRS ASAP. Ask if they could PLEASE allow you to make reasonable payments that this is putting a hardship on your.
You must be sincere and if they do agree to this make your payments on time every time.
The IRS sends out plenty of notice before they start putting Levey's on your account. They are really very reasonable to work with but not sure about you since you didn't respond to the notices or didn't keep your end of the bargain.
You have some serious talking to do. But all you can do is ask. They will either say yes or no.
2007-11-03 19:35:54 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You may be able to work out a payment plan with them for the balance of the money owed. Call and talk to them or call legal aid and ask if a lawyer will talk to them on your behalf for free.
Check out the IRS website at www.irs.gov and you can get some info on payment arrangements. You can also get a form on-line to set up payment arrangements I believe.
2007-11-03 19:40:28 · answer #6 · answered by concorde315 2 · 1⤊ 0⤋
I would imagine that if the IRS is taking money out of the bank, they've bee pretty much ignored. They can work out payments with taxpayers .
Contact them with a proposed payment plan, and be prepared to clarify why the payments should be what you'll be proposing.
Good Luck
2007-11-03 19:31:57 · answer #7 · answered by Asked and Answered 7 · 2⤊ 0⤋
Ninasgra is correct. Tell the Advocate you need a Taxpayer Assistance order. You will need to provide information about your income and expenses. Your account may be placed into the "currently not collected" status.
2007-11-04 10:39:02 · answer #8 · answered by daoco 4 · 0⤊ 0⤋
The IRS is not flexible at all...if you owe back taxes, and you do not have the money in your account, they will take most of your paycheck eventually, until your taxes are paid...they could care less about your personal finances.. if you owe them, they WILL find you, and they WILL get their money.
2007-11-03 19:38:34 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Have the person or his representative call the Taxpayer Advocate and relate the situation to them.
Contact information: http://www.irs.gov/advocate/article/0,,id=97402,00.html
Also, why are you having the SSDI go into that bank account? Why don't you have a check sent directly to the person and then cash it? I would do that right away.
2007-11-04 01:11:58 · answer #10 · answered by ninasgramma 7 · 1⤊ 0⤋