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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1375
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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Just received a tax levy on wages, for 2001 Please tell me

Customer Question

Just received a tax levy on wages, for 2001 Please tell me what my options are? Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  Jax Tax replied 2 years ago.

Jax Tax : Is the levy from the state or the IRS?
Customer :

IRS

Jax Tax : How much do you owe the IRS. Are all returns 2004-2010 filed?
Customer :

This levy was for$835.85 balance and $742.05 in penalties totaling$1.577.90

Customer :

No i have not filed tax returns

Jax Tax : The first step is to make sure you are in compliance. Compliance has two part. 1. You have filed all tax returns for 2005-2010.2. You have taken steps to to owe in the future. This means you change your w-4 with holdings or make quarterly estimated tax payments. This is important because current taxes are only considered an expense in the next step if they are being paid.Step 2. Call IRS at XXX XXX XXXX and tell them you need 30 days to complete and provide all returns and a financial statement. They will ask you where you work and bank. Tell them that an attorney advised you to provide the information on the financial and not over the phone. They are asking so they no where to issue levies. Step 3. Complete IRS form 433F, attached supporting documents, and mail it to IRS. Make sure to search "national standards" on IRS.gov for car, housing, and other expense categories. The car operating cost, food clothing and misc,and out of pocket medical should be used and put directly on the 433F. Other standards for housing and car ownership are maximums. Use you actual cost here. If actual costs exceed any of these standards, you need to ask that they allow them under the 1 and 5 year rule. Just use that statement. Step 4. Call the IRS by every deadline they set to ensure you know what is going on with your request and they do not levy you. They will set up a payment based on your ability to pay. You will pay that until the 10 year statute of limitation runs and the rest goes away. They can ask for updated financial every two years, but rarely do.If you cannot financially afford a payment, they will put you in a $0 payment. Step 5. You cannot owe again. Option 2. You can try an offer in compromise, but very few people qualify for an amount they can afford. I recommend an attorney for this one. Keep in mind. It is based on your complete financial. Any one who agree to file an offer before having all of your financial information is a Joke. Do not hire them. A good professional will not tell you they will file just to get your business. They will tell you that they will help but will need your financial information to determine the best route. This includes IRS agents. If they tell you to file an offer, don't. I have no idea why they tell people to do this when they have no idea what your financial situation is, but they do. You can also contact Taxpayer advocate a free IRS tax profession comparable to a public defender to help. Use IRS form 911 to request help.The key to dealing with the IRS is communication and to stop owing. They will work with you on back taxes. They will levy and seize assets if you do nothing or continue to owe. Good luck. I hope this helps. All forms are at its.gov.
Jax Tax :

Did you file the 2001 return, to did the IRS file for you?

Customer :

Thank you, What you're telling me. I will have to pay the ten year old tax debt in full.

Jax Tax :

NO.

Jax Tax :

Did you file the 2001 or did the IRS file for you?

Jax Tax :

Do you have a copy of the levy? If so, what is the address in the top right corner on the letter?

Customer :

IRS filed for me

Jax Tax :

Call IRS at XXX XXX XXXX. Tell them you need your Income Transcripts for 2001 and you are going to file the return and pay in full. They will release the levy. If you have balances on any other years, you need to do the same. Just because they levied for a few hundred does not mean that is all you owe. They will file all years and levy. It is just a matter of time. To deal with the levy, call them and ask for all income transcripts. Tell them you need 60 days to file the returns and full pay. They will release the levy. Have the payroll fax number available when you call.

Jax Tax :

After you file, if you cannot pay, follow the steps above to establish a payment plan based on your financial ability to pay. They will put you in a $0 per month payment if your financial supports it.

Customer :

Correct me if i'm wrong... Call them IRS request a income transcript for the year in question and offer them a payment within 60 days.

Customer :

Does my employer need to comply with levy if they accept my offer.

Jax Tax :

Call them and find out what years you owe for, what years they filed for you, what years are not filed, and ask for the income transcripts for all years not filed or they filed for you.

Jax Tax :

Tell them you are going to file all returns and full pay in 60 days. They will fax a release to your employer. That is why you need the fax number.

Customer :

Excellent information. Thank you .

Jax Tax :

When you do actually file. File the years they filed for you and 2005-2010. Do not file any years that nothing is filed that are older than 2005

Jax Tax :

After you accept, please feel free to comment. Let me know if you have additional questions.

Customer :

Thank you, i will follow your suggestions.

Jax Tax :

It will work. Heck, you may have a refund.

Customer :

Never know.

Jax Tax :

Let me know. We can communicate up to 72 hours after acceptance.

Customer :

Will do. Thanks again

Jax Tax :

make sure the cell is charged. Wait times are about 15-20 minutes.

Jax Tax :

Good day Sir. I was following up to see if you were able to have the levy released from your wages. I am always interested to know how my advice works out.

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