Capital Gains and Losses

Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP

Ask an Expert,
Get an Answer ASAP!

Capital Gains and Losses

The IRS is about to levy my bank account. Is closing the

Customer Question
account and switching to a...
The IRS is about to levy my bank account. Is closing the account and switching to a new bank illegal in any way?
Submitted: 2 years ago.Category: Capital Gains and Losses
Show More
Show Less
Ask Your Own Capital Gains and Losses Question
Answered in 4 hours by:
10/25/2015
Tax Expert: PDtax, CPA firm owner replied 2 years ago
PDtax
PDtax, CPA firm owner
Category: Capital Gains and Losses
Satisfied Customers: 4,778
Experience: Tax professional and business consultant for 34 years
Verified

Hi from Just Answer. I'm PDtax, and can assist.

Closing a bank account that is threatened with IRS levy is not illegal. But it will set in motion a list of things that you will not like, including making the IRS Revenue Officer very mad. I can suggest something more appropriate that will allow you to escape IRS levy and negotiate a resolution on your terms, not theirs.

Ask Your Own Capital Gains and Losses Question
Tax Expert: PDtax, CPA firm owner replied 2 years ago

I'll need some more insight into who owes the tax (you personally or your business), and how your business might be set up if that's what's at stake. Since quite a bit of time will be needed to make sure what I tell you is applicable to your situation, I will post an Offer for that professional time. Accept, and we can discuss your issues over the phone for privacy.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 2 years ago
I received a CP523 then an Lt16. Is there another notice that I will get in this situation?
Tax Expert: PDtax, CPA firm owner replied 2 years ago

I do not show acceptance on my end of my Offer to assist. Please advise.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 2 years ago
It was a follow up question as allowed by justanswer.com
Tax Expert: PDtax, CPA firm owner replied 2 years ago

Since you did not wish me to assist as i offered, I will opt out. I saw you asked similar questions of others.

Ask Your Own Capital Gains and Losses Question
Tax Expert: Anne, Master Tax Preparer replied 2 years ago
Anne
Anne, Master Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 2,439
Experience: I ha
Verified

Hi

I'm Anne. I've been preparing taxes for 27 years and I'll be happy to help you.

First the above expert was correct in that it is not illegal to close out the account, as long as the IRS does not have a lien against it, but regardless of whether you do that or not, you definitely need to contact the IRS and try to resolve this matter.

The CP 526 letter states that you defaulted on an installment agreement that you had in place with the IRS. Did you in fact have an installment agreement with the IRS that you defaulted on? Please see below:

https://www.irs.gov/Individuals/Understanding-your-CP523-Notice

The LT16 letter is issued when you do not contact the IRS re: taxes due, and is warning you that they may go to the next level by leveling your wages, bank accounts, and other forms of income.

The LAST thing you want to do is to NOT contact the IRS as it can look upon your silence unfavorably. If nothing else, it can delay any more action from the IRS. Please see below:

https://www.irs.gov/Individuals/LT-16-%28Letter-2050%29-Frequently-Asked-Questions-%28FAQs%29

If you have any questions, please post them here and I'll be notified.

If this answer has helped you, please take the moment to rate positive.

It is only through positive feedback that we are compensated for our time and knowledge.

Thank you for using justanswer.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 2 years ago
Is there another notice that I will get in this situation after the LT16?
Tax Expert: Anne, Master Tax Preparer replied 2 years ago

The next notice will be "Intent to Levy". You might find the following helpful:

http://robergtaxsolutions.com/2011/08/things-to-do-if-the-irs-threatens-to-levy-your-bank-account/

The IRS will not start garnishing your wages without giving you notice and an opportunity to make payment arrangements. But, unlike most other creditors, it does not have to first use you and get a judgment in order to start the garnishment process.

To start the process, the IRS must send you a written notice stating the amount you owe. The notice must itemize all of the charges (tax, penalties, and interest) and give you a date by which you must pay the balance in full.

If you don't comply with the demand for payment within the stated time, the IRS will then explore how it may most effectively force you to pay the tax. This may include seizing your assets, placing liens on your property, taking future refunds, and garnishing your wages.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 2 years ago
If I simply close my bank account when facing an IRS levy is it a violation of 26 USC 6901 Fraudulent Conveyance?
Tax Expert: Anne, Master Tax Preparer replied 2 years ago

I assume you found either this posting or 1 similar to it:

http://www.avvo.com/legal-answers/an-irs-levy-is-about-to-be-placed-on-my-bank-accou-2392790.html

You have not, to date, received an "intent to levy". If you had, then closing/moving funds from that account could be considered fraudulent conveyance.

Again, your best bet is to work WITH the IRS, not against it.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 2 years ago
I received the CP523 which said "notice of intent to levy" on it.
Tax Expert: Anne, Master Tax Preparer replied 2 years ago

I'm going to "opt out" of this question to see if any of my colleagues has had direct experience with possible fraud charges from closing the account.

The only thing I've seen happen is that the levy against your wages increases, since that becomes the only source they can levy against.

Ask Your Own Capital Gains and Losses Question
Tax Expert: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 13,283
Experience: Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
Verified

hello again.

...

As I mentioned before, because you have defaulted on an installment agreement, the intent to levy notice has already happened.

...

What you might consider is just not keeping a lot of money in the account.

...

a Levy is a one time shot where they take whatever is there is it is less than the levy amount

...

a garnishment, however, is different ... once it's the it's there

...

although, analogous to the levy ... if you're self employed they have to re-initiate the garnishment every time your payor pays you (another one-time shots, and so administratively more difficult)

...

but the BEST advice here is to do what I told you early on and all of the other experts have said have said as well CALL THEM.

...

THAT can stop the locomotive.

...

and YES MOVING a lot of money (after the notice )... IF they play hardball with you, could be Fraudulent Conveyance.

...

CALL THEM - so simple

Ask Your Own Capital Gains and Losses Question
Tax Expert: Lane, JD, CFP, MBA, CRPS replied 2 years ago

If this HAS helped, and you If you don't have additional questions on this, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
...

Lane

.

Ask Your Own Capital Gains and Losses Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 13,283
13,283 Satisfied Customers
Experience: Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

R. Klein, EA

R. Klein, EA

Enrolled Agent

263 satisfied customers

Over 20 Years experience in resolving tough tax cases

jgordosea

jgordosea

Enrolled Agent

173 satisfied customers

As an Enrolled Agent you can be ensured of my competence in income tax matters.

PhillipB EA

PhillipB EA

Accountant

130 satisfied customers

Enrolled Agent with 8 years experience in tax return preparation, representation, and taxpayer consultation

Arthur Rubin

Arthur Rubin

Tax Preparer

72 satisfied customers

Over 22 years of tax preparation experience.

Bill-the-CPA

Bill-the-CPA

Certified Public Accountant (CPA)

55 satisfied customers

Seasoned professional with over 15 years in public accounting. Income, sales and property tax. Also accounting/tax software.

FredStevens

FredStevens

Accountant

37 satisfied customers

Experienced in business, accounting and tax planning for individuals, small/medium sized businesses and non-profit organizations

Shane-CPA

Shane-CPA

CPA, PFS, CGMA

11 satisfied customers

Shane Northrop is a Certified Public Accountant, Personal Financial Specialist and a Chartered Global Management Accountant

< Previous | Next >

Related Capital Gains and Losses Questions
Does Massachusetts treat term gains and carry over losses
Does Massachusetts treat long term gains and carry over losses differently from the Feds?I have had unused long and short term capital losses that have carried over for years on the Federal form (D). … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
I trade binary options in the US. For every single trade I
I trade binary options in the US. For every single trade I get in at some time during the day and liquidate my position before the end of the day. I either buy the binary options contracts or sell the… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I'm trying to plan out what would be the most tax advanteous
Hi, I'm trying to plan out what would be the most tax advanteous thing to do with my in-laws' home when they pass away. They purchased this home decades ago for about $25K and it's now worth about $50… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I just put together a spreadsheet by going to Covered
I just put together a spreadsheet by going to Covered California - the state site for 'Obamacare' and using their Shop and Compare tool to compare the different health plans, premiums and federal cred… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I currently have rental property (single family) that I
Hello, I currently have rental property (single family) that I would like to sell and use a 1031 Exchange to purchase a larger rental property (single family) with the goal of converting the new prope… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,084 satisfied customers
I have a question regarding Schedule D. Let's use my 2013
I have a question regarding Schedule D. Let's use my 2013 tax return as an example. Is the amount on line 15 the amount carried forward from the PREVIOUS year or what will be carried forward to the 20… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I want to open a commercial account at brokerage firm to
i want to open a commercial account at brokerage firm to avoid paying taxes on capital gain unless i withdraw money....is it possible or it wont make a difference=will work as same as on personal acco… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
IS there a way to offset capital gains taxes from a business
IS there a way to offset capital gains taxes from a business loss on a K1. … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,283 satisfied customers
Regarding the new tax law changes and lower tax table rates.
Regarding the new tax law changes and lower tax table rates. They lowered Corporate tax rates. Does that apply only to "C" Corps? Does it Not apply to "S" Corps because S Corp net income flows through… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
Do you know if capital gains will be included as income
Hello, do you know if capital gains will be included as income regarding the new 20% deduction on pass thru ( k-1 pass through capital gain from the sale of s-Corp asset ,line 17 of the k-1 that puts … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,283 satisfied customers
If i own ripple thru bitstamp do i have to pay capital gains
if i own ripple thru bitstamp do i have to pay capital gains in luxemburg and the US? … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,283 satisfied customers
I sold a business in California with real estate on July 6,
I sold a business in California with real estate on July 6, 2017. We entered into a 1031, and were not able to complete. Funds were released to us jan 5, 2018 after 180 days. California tax 3.33% has … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
On an executed contract for 200k for a condo that will be
On an executed contract for 200k for a condo that will be 2nd home, sold furnished, seller is proposing to drop price by 10k and ad 10k in furniture. If done, I know all parties will pay less doc stam… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
How should i determine the FMV in USD of my coin-coin crypto
how should i determine the FMV in USD of my coin-coin crypto currency trades for capital gains calculations? If I buy bitcoin for the sole purpose of acquiring another crypto asset, but by the time I … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,084 satisfied customers
My mother died in 1989. She had interest in a 100 ac farm
My mother died in 1989. She had interest in a 100 ac farm land with other family memebers. In 2016 the family was forced to sell the property due to health reasons of my mothers sister who lived and m… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My mothers will was not probated until November 9, 2016. Why
my mothers will was not probated until November 9, 2016. Why wouldn't my basis be the appraised value of the land when I received interest. I was unaware I had any interest until 2016. The property wa… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
THE BASIS WAS 9900 APPRAISED VALUE IN 1989 WITH
THE BASIS WAS 9900 APPRAISED VALUE IN 1989 WITH APPROXIMATELYL 5000 IN ADDIITONAL COST. I FIGURED THE GAINS TO BE 247, 177. iM MARRIED FILING JOINTLY. My taxble income for 2017 is around 69000. I have… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Thank you for your previous answers. New question:, a
Thank you for your previous answers. New question: John, a married man, wishes to gift, say, 12M to his children. Can he under the new tax law make that gift tax free, utilizing 2M of his wifes 10M ex… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x