Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I have a tax lien and my taxes were filed by the IRS on my

Customer Question
behalf on 7/30/2007. They...
I have a tax lien and my taxes were filed by the IRS on my behalf on 7/30/2007. They have been garnishing my SSDI via offset since that time. I assumed it would continue until the CSED, which I assume to be July of 2017. They stopped taking anything out starting with my November 3 check and haven't taken any out since. My levy was for $400K and is not nearly paid in full. I am wondering what is going on and if my CSED may have already expired.
JA: Thanks. Can you give me any more details about your issue?
Customer: I think I gave you all of them, what more do you need?
JA: OK got it. Last thing — Lawyers generally expect a deposit of about $36 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 41 minutes by:
2/21/2016
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,265
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

...

You MAY have answered your own question here, not, however, because the statute has expired, but because they may have placed you into non-collectible status

...

The "CSED clock" starts ticking when taxes are assessed

...

The date of assessment is the date the tax liability is assessed on a particular form at an IRS Service Center. When the applicable form is signed by an IRS official, the 10-year period for that tax liability starts to run. When interest and late payment penalties (as well as other penalties) related to that tax year tacked onto the underlying tax debt, they too must be collected within the same 10-year period.

...

But, in YOUR situation never having filed a tax return, where IRS filed one for you (i.e. using a Substitute for Return or SFR), then the statute of limitations began to run whenever that assessment was processed by the IRS on your behalf.

...

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Currently not collectible status occurs when the IRS assesses that you cannot afford to repay the debt, and doing so would create an economic hardship on you. It is forbearance by the IRS, a break from enforcement that can last years.... AND that does not toll the statutory period (stop the CSED clock from ticking)

Ask Your Own Tax Question
Customer reply replied 1 year ago
I am aware of that information. What I am concerned about is what measures the IRS has available to them after the CSED, which in my case is 7/30/2017. Is there something that they are doing by not continuing the automatic collections and switching to a "paper" collection? Does the "paper" collection allow them to continue to collect after the CSED? If so, does it allow them to collect more than the 15% of my disability benefit under SSDI?
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

It changes nothing regarding CSED.

...

But yes, it DOES affect amounts ...It's possible that they are moving to MANUAL (from automated):

...

Automated:

...

Pursuant to section 6331(h) of the Internal Revenue Code, the IRS can continuously take, month after month, an automatic 15% of a taxpayer’s social security benefits. All the IRS has to do is match its records of delinquent taxes to those of the government’s Financial Management Service, which indicate social security entitlement. After a match is made, a notice is sent to the taxpayer from the IRS that the 15% levy will commence on his or her social security. Once the levy commences, the Financial Management Service sends a notice of confirmation to the taxpayer.

...

Manual

...

The manual levy requires the assignment of an IRS Revenue Officer, while the automatic levy is a paperless transmission. The manual levy is usually made in extreme circumstances where there is a lack of cooperation.

...

There CAN be exemptions, however, regarding the Manual Levy... This exemption – contained in IRC 6334(a)(9) – permits the taxpayer to receive a minimum amount of the social security payment and defeat all or part of the manual levy.... The IRS publishes a table of the amounts that can be claimed as exempt. A single taxpayer getting a monthly social security benefit can currently claim $779.17 as exempt from a manual.

...

https://www.irs.gov/pub/irs-pdf/p1494.pdf

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

I should also ad that IRS has recently announced that they will attempt to be more reasonable in levy releases in hardship cases. If an automated or manual IRS social security levy doesn'tleave sufficient funds to pay living expenses,you should contact them ... it will only reinforce your financial situation

Ask Your Own Tax Question
Customer reply replied 1 year ago
It has been my understanding that the IRS could only take up to 15% of my Social Security Disability Payments. Are you saying that the paper levy can take more than that?
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

"Manual Levy," (there are paper aspects to the automatic levy too) ... again the manual levy means that there's now a revenue officer involved.

...

The IRS is not limited by IRC 6331(h) to taking 15% of a taxpayer’s social security benefits. The IRS can issue a manual levy that can continuously take all of the social security benefits under Internal Revenue Code section 6331(a), which permits levy on all wages, salary or other income (which would include social security).

...

So, in that case, unless you use the table for an exemption, the law allows 100%.

...

But again, they will work with you if you show it creates hardship and the statutory clock will not be tolled, even if this IS a manual levy

Ask Your Own Tax Question
Customer reply replied 1 year ago
I just found this. https://www.irs.gov/Individuals/Social-Security-Benefits-Eligible-for-the-Federal-Payment-Levy-Program The timing indicates that they stopped offsetting my SSDI payments due to this change in their internal policy. Do you know what they do next? In other words, are they now ceasing collection of people with SSDI or are they pursuing all of them manually and therefore more aggressively?
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

There's no "what they are doing now" ... Everything is dependent on what IRS calls the "facts and circumstances" test.

...

If they believe that you are hiding assets, It's likely that they've moving to a manual process.

...

If they believe that this is truly a hardship issue, then they'll make the determination that putting the additional resources on this (revenue officer salary, costs of notice to levy specific accounts, etc) woul be more costly that amounts collected, if it turns out that there are no assets there to collect.

Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,265
13,265 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

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:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I have a federal tax lien filed 2015 with 2 assessment dates
I have a federal tax lien filed 2015 with 2 assessment dates in 2008 and 2009. you told me the both expire 2018 and 2019 respectively. how do I obtain an early release from the lien? I would like to p… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
I spoke to you about federal tax lien release and expiration
I spoke to you about federal tax lien release and expiration at the 10 years after assessment. If I purchase a home after the expiration of statute of limitations, can irs lien and demand payment at t… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
My mother died in Illinois. On the federal estate tax return
My mother died in Illinois. On the federal estate tax return she has 3.9 million adjusted gross estate and 1.5 million in taxable gifts made in 2010 and 1.7 million in unused exemption from my father'… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a federal tax lien filed in 2015. The date of
I have a federal tax lien filed in 2015. The date of assessment is 2008 and other is 2009. I have read that each will be zeroed after 10 years and lien satisfied. Will IRS satisfy both in 2018 or wait… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
64 satisfied customers
Is it legal for a government agency (other than the IRS) to
Is it legal for a government agency (other than the IRS) to charge a percentage of a tax-exempt corporation's income and call it a fee instead of an income tax?… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
Interested in information about new tax laws and their
Interested in information about new tax laws and their effect on S Corporations … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Looking for the statute of limitation on the collection of
looking for the statute of limitation on the collection of WI taxes. in particular for withholding taxes from 21 years ago … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is there a form to file with the IRS for tax periods that
Is there a form to file with the IRS for tax periods that have ran past the statute of limitations from the date of assessment … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My brother retired from the federal government at the age of
My brother retired from the federal government at the age of 57 because he had been diagnosed with kidney failure and wen on dyalysis. He worked for a year after his diagnosis, and had to work through… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
Wanted to know if there was statute of limitations on ga
Wanted to know if there was statute of limitations on ga back taxes … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
I am a 100% disabled vet, who has an income tax lien going
I am a 100% disabled vet, who has an income tax lien going back some yrs ago when NJ was advertizing amnasty for taxes. I was told being a 100% disabled I would not be on a collection list. Is the acc… read more
Carter McBride
Carter McBride
LLM
247 satisfied customers
On october 30th I mailed form dt individual to the IRS in
on october 30th I mailed form dt individual to the IRS in Connecticut Certified mail showed it had been delivered on Nov 2 I have heard nothing … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
I recently filed amended federal tax returns (1040x) for
I recently filed amended federal tax returns (1040x) for 2013 and 2014. I have received a refund for 2014 and am answering some additional questions for 2013. Do I need to file amended tax returns for… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
Is there a statute of limitation for sales tax in ohio?
Is there a statute of limitation for sales tax in ohio? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,797 satisfied customers
I have an IRS tax lien and making installment payments. I am
I have an IRS tax lien and making installment payments. I am likely to win a lawsuit within the next year. Can IRS attach my settlement? … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
Tax question - Form 1099, Line 8 Tax Exempt Interest
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,074 satisfied customers
How do I remove a federal tax lien. I no longer own the
How do I remove a federal tax lien. I no longer own the property. Transferred to spouse in divorce… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,265 satisfied customers
I have a question about an irs lien. I have a lien for taxes
I have a question about an irs lien. I have a lien for taxes due. The statute of limitations is close to expiring. The submitted a revocation of lien release. The statute tolled for 1 yr & I understan… read more
Andrew Jordan
Andrew Jordan
Shareholder
Master\u0027s Degree
5 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