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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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Received a letter from IRS FORM

Customer Question

I'm panicking because I just received a letter from IRS FORM 8519 taxpayers copy of notice of levy.  It went to my bank too. Can I get money out of my bank?

Submitted: 2 years ago.
Category: Tax
Expert:  Tax.appeal.168 replied 2 years ago.
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.

Do you owe back taxes? Have you not filed tax returns in a while? Why did you receive the levy?
Customer: replied 2 years ago.
id="mf77" class="JA_body">

I'm panicking because I just received a letter from IRS FORM 8519 taxpayers copy of notice of levy. It went to my bank too. Can I get money out of my bank?



Customer: replied 2 years ago.

It's like $95,000

Expert:  Tax.appeal.168 replied 2 years ago.
What's the $95,000 from? Unpaid taxes, unfiled returns? What? There was a reason why they sent you the levy. What was that reason. I can't provide direction unless I know what your situation is.
Customer: replied 2 years ago.

they say I owe back taxes from 2005. Can I withdrawal money from my account if I received a copy of form 8519

Customer: replied 2 years ago.

Hello

Expert:  Tax.appeal.168 replied 2 years ago.
Hello again,

If I were you, I would check your bank account balance tonight and tomorrow a.m. If you still have money in the account, my suggestion is to withdraw as much of it out as possible. Following is the skinny on the Form 8519:

The IRS notifies your bank and you of a bank levy with Form 8519, which is very similar in effect as the Form 668-A(c). The levy is not continuous and only affects the money in the bank on the day the levy arrives. However, the bank will hold the money for 21 days before giving it to the IRS so you have some time to negotiate.

There are various reasons why your account has been levied so your approach to resolution will vary with the situation. In general, to get a release you must be current with your tax filings, disclose your financial situation and arrange an agreement with the IRS – within the 21 days.

Each step in that process has traps and pitfalls to avoid. After you get the levy released, you still need to devise a plan for how you are going to reduce or eliminate this tax debt!

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Are the taxes supposedly owed from 2005 from a tax liability or what?

Customer: replied 2 years ago.

Omg I can't breathe. I support my kids. they are saying I owe from back real estate gains in 2005. I had an account at the bank with my name and my SS number. However, I closed that account about a year ago and opened an LLC and have a new account with my new business name and of course my personal name but I have a corporate Id that I use with the same bank. My commission check and drawl goes in this account.

Customer: replied 2 years ago.
I have a W-9 Sub S Corporation Now. But the form 8519 is in my personal name. I think

Expert:  Tax.appeal.168 replied 2 years ago.
I know it is easier said than done, but please try to slow your breathing and relax. Let's start from 2005. Did you sell property that you did not report in 2005? If so, this could be the reason why they are saying that you owe such a large amount. When a person sells property, they are required to report that sale. Even if they had a loss. If the sale is not reported, all the IRS knows is that there was property sold for a certain amount. They don't know if the taxpayer incurred a loss or a gain.
Customer: replied 2 years ago.

Yes there were 2 properties sold. Then I purchased another property but then I went through a divorce. Then The properties foreclosed.

Expert:  Tax.appeal.168 replied 2 years ago.
Ok. Now we're getting somewhere.

1) Did you report the properties that were sold? If not, amended returns need to be done.

2) When were the properties foreclosed on? In 2005?
Also, know that bank levys are only good on the day that bank receives it. However, the IRS can keep issuing it. Example, let's say that the bank rec'd a levy on a particular day and you had $5,000 in the account. That $5,000 will be taken out of the account and the bank will hold it for 21 days before sending it to the IRS. The 21 days is to give you time to work out something with the IRS.
Customer: replied 2 years ago.

The 2 properties sold were not foreclosed on. two homes after these 2 homes were foreclosed on.

Expert:  Tax.appeal.168 replied 2 years ago.
I understand. However, the sold properties still needed to be reported? Were the sale of the homes reported? What year were the homes foreclosed on?
Customer: replied 2 years ago.

I did not report them. The IRS received the info from another source. At the time my exhusband handled the info with the accountant. He put the properties in my name only.

Expert:  Tax.appeal.168 replied 2 years ago.
This is likely why they are saying that you owe such a large amount. Yes, the IRS rec'd the sale information from a different source, but you as the taxpayer were supposed to report the sale of the properties on your tax return. If you filed a separate tax return at the time, you shold have reported the sale of the properties. What was handled by the accountant? The filing of the tax returns?
Customer: replied 2 years ago.

I don't know because my ex filed with the accountant. but what about the money paid to add amother bedroom to the properties sold.

Customer: replied 2 years ago.

I'm checking to see when the other properties were foreclosed on.

Expert:  Tax.appeal.168 replied 2 years ago.
Cost of qualified improvements get added to the cost basis of the property. Cost basis is the original cost of the property plus qualified improvements. The cost basis is the amount you start with to determine whether you incurred a gain or a loss.

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On a different note, it is late for me and I would like to leave the computer. Can we continue this conversation in the a.m. I am in the Pacific time zone. I know that your matter is an important one, but there is nothing that can be done about it at this hour. Again, check your bank account balance as soon as possible and withdraw as much money from the account as possible. They will levy the account and if you rec'd the notice, if the bank has not yet rec'd it, they will soon.
Customer: replied 2 years ago.

Can I call you in the morning.

Customer: replied 2 years ago.

The 2 foreclosure were:

2009

2010

these were not the same properties that showed a gain. But there really wasn't a gain because of paying the contractor.

Expert:  Tax.appeal.168 replied 2 years ago.
Yes, you can call me in the a.m. However, that would be an additional services. I will send you an additional services request. You are under no obligation to accept it, however, that is the only way that I wold be able to speak with you. I will send the request for a 1 hour telephone consult. Based on my conversaton with you, the call will take probably an hour or close to it. I will send the offer.

As for the two properties that were foreclosed on, the debt may have been canceled by the lender, which means that the canceled debt is considered income, unless one of the houses was our primary residence. We can discuss this in the a.m. if you accept the offer.
Expert:  Tax.appeal.168 replied 2 years ago.
Hello, checking in to see if you are working on getting this matter resolved. Have you checked into it further. If I can be of further assistance, let me know. If not, a positive rating wold be appreciated. That is how I receive credit for assisting you. Thank you in advance.
Angela
Customer: replied 2 years ago.

Hi I did not receive the number to reach you?

thank you. What was the fee for this conversation.

Expert:  Tax.appeal.168 replied 2 years ago.
Hello,
In order to provide contact information, you would have had to accept the additional services request. Our prior conversation, not including the additional services fee is $32. By positively rating me, I will receive service for assisting you.
Thank you.