Posted by LWM Team on Wed, Mar 10, 2010 @ 12:47 PM
Frequently when someone is issued an IRS wage levy, they may worry about whether their spouse’s income will also be subject to the levy. The fact is that the IRS is not allowed to take income from your spouse if they are deemed to not be liable for the taxes, whether or not you filed a joint return.
If you filed separate tax returns the situation is very simple; only you can be held liable for the IRS wage levy and only you will have to pay it. You are the person who signed the return, and therefore, under the law, you are the only person who can be held responsible for paying off the debt.
Additionally, if you have been issued an IRS wage levy for debt from a return you filed a few years ago with an ex-spouse, the IRS will not hold your new spouse accountable for any debt – it is either yours or your ex-spouse’s.
If you have filed a joint return with your current spouse, they will still not necessarily be held liable for your tax debt. The IRS has rules and regulations in place to protect so-called ‘innocent’ spouses from being held accountable for debt that is not theirs and having things such as IRS wage levies imposed upon them. ‘Innocence’ here is determined by whether the IRS decides if your spouse knew about the unpaid taxes and whether they received any of the ‘benefits’ of them. If they decide your spouse didn’t know about the unpaid taxes and/or didn’t feel any benefits, they will be granted relief, otherwise they very well could be subject to a wage levy too, although what happens is up to the IRS.
Posted by LWM Team on Tue, Mar 09, 2010 @ 05:17 PM
There are a number of ways you can go about getting wage garnishment release. The simplest and easiest way to get wage garnishment release is to fully pay off the taxes you owe to the IRS plus any fines or penalties they may have imposed upon you. Of course, most people who owe the IRS taxes are unable to gather together the money to go for this option; therefore it is not advisable in most cases.
A very good way to get wage garnishment release is to get the advice and help of a qualified tax professional. They will be able to look over your records to see if any kinds of deductions or credits you qualify for may have been missed. If you owe a lot of money, this is the best option for you, since the money you pay will be worth it for how much you owe!
Another option for wage garnishment release is to think about going for an offer in compromise. An offer in compromise can greatly reduce the amount you owe, since it means you are offering to pay less than what you owe. If you have a little spare money, an offer in compromise can be a great way of stopping the wage garnishment, although you will have to qualify for it first.
As a final option, you can go for a Hardship Tax Relief Petition. This can get you wage garnishment release via the fact it will give you the currently not collectable status, meaning the IRS will not come after you for the tax debt you owe (although this is not something that many people easily qualify for).
Posted by LWM Team on Mon, Mar 08, 2010 @ 06:23 PM
If the IRS imposes a wage garnishment on you, it is important you are aware of how to get a wage garnishment release, should you quality for it.
The IRS may decide to serve you a wage garnishment if you have any unpaid taxes. In the event they decide to do this, they will warn you beforehand. However, the IRS must stick to certain strict procedures around wage garnishments.
You can get a wage garnishment release if you are not in default on your tax payments. The IRS needs you to be in default to go ahead and apply the wage garnishment on to your salary. You should contact them and let them know as soon as possible should you not have defaulted your tax payments.
Once the wage garnishment goes into effect, you get around 30 days or so warning beforehand, meaning you have a little time to prepare for the effects of the wage garnishment. The IRS can take whatever they want out of your earnings once they start, so preparing for what may come is important. Make sure you check the date it is due to begin.
To get the best chances of getting wage garnishment release, your best bet is to get the advice of a reliable tax professional who will be able to guide you and tell you if you quality for wage garnishment release. They may also be able to help you negotiate with the IRS, so that if you cannot get out of the wage garnishment, you may be able to at least get a better deal out of it.
Posted by LWM Team on Fri, Mar 05, 2010 @ 01:00 PM
Often, after being served a bank levy and paying it off, an individual may require IRS bank levy release help and they may need to find out whether they are actually able to use their bank account again or if there are any limitations imposed on their account.
Bank levies are very different from wage levies. Wage levies are something that are continuous, so you have to keep on paying them, but bank levies are not like this.
A bank levy is simply a one-off deduction from your bank account, so anything you put into it after the levy has been paid in full (whether it be all at once or through an installment agreement between you and the IRS) is completely yours and the IRS will not take any of it from you. Many individuals however decide to switch bank accounts anyway after receiving bank levy release help.
The only way the IRS will take money out of your account after you have paid your bank levy off is if they issue another levy – although this is something you would be made aware of before it happens.
More importantly, if you want IRS bank levy release help, you have a window period between when the money is deducted from your account to pay the levy and when the IRS actually gets it. This window period is 21 days and the bank holds the money during this period, meaning neither you nor the IRS gets it. During this period, it is sometimes possible to negotiate with the IRS to get the levy released, and if they do so within 21 days, the money will go back into your account.
Posted by LWM Team on Thu, Mar 04, 2010 @ 11:54 AM
To get IRS bank levy release help, you should first note that there are two main ways you are able to get released from a bank levy: if the levy has been paid off (meaning you are no longer in debt to the IRS) or if the statutory collection period for the levy has expired. In the later case, if the issue of levy has been served before the end of the expiration period, you will still have to pay. You will only be released from paying the bank levy if you are not served the levy within the statutory collection period.
However, you can get relief from a bank levy in certain other circumstances. IRS bank levy release help can be gained if it is determined that it will result in some kind of economic hardship if you pay off the levy. “Economic hardship” is defined based on the minimum income an individual needs for their basic needs of food, shelter, bill payments etc. If it is determined by the IRS that you will be unable to pay for these things, the levy will be cancelled.
One of the most common methods of getting IRS bank levy release help is through making an installment agreement with the IRS. You may wish to do this if you owe a lot (especially if you owe more than you have) or if you don’t have a lot of income. How much you will have to pay per installment can vary, but installment agreements are a very good way to get bank levy release help as they can really take the strain off your finances.
Posted by LWM Team on Tue, Mar 02, 2010 @ 04:48 PM
The key to lowering your offer in compromise cost is: knowing how the IRS settlement guidelines work, as well as being able to negotiate with the IRS. Here are 5 great ways to lower your offer in compromise cost:
- Let the IRS know you are considering bankruptcy as another option. If you file as bankrupt, the IRS will get no money and they are fully aware of this, so they will likely listen more to your demands if they think they could get nothing from you if they don’t.
- Ensure that the offer in compromise cost does not cover certain items of property that are exempt from being included in what you offer the IRS. Such objects include everyday objects you have around your house, as well as certain objects you may have related to your business.
- You should know how to get to ‘quick’ sale value for your property. You are allowed to sell for 20% below the ‘fair market value’ of the property under the guidelines of the IRS. Such property you should do this for includes houses and cars.
- The IRS has guidelines related to how much you are allowed for living expenses within the offer in compromise. They will allow you a certain monthly amount for certain things, and you should be aware of what your allowances are.
- Make sure you know what income you have that the IRS has no right to take from you. Your offer in compromise cost does not include income such as unemployment benefits, social security benefits for those that are disabled or aged, and workers compensation payments.
The more you know about the IRS guidelines for your offer in compromise cost, the more you can lower it. Make sure to be as thorough as possible in the settlement process.
Posted by LWM Team on Mon, Mar 01, 2010 @ 02:14 PM
If you have already received a notice that says “intent to levy” from the IRS, you only have 30 days before the IRS will send collections to seize your assets. This could be anything from property to vehicles and more. During these 30 days, it's imperative that you work fast and get everything in order. The easiest ways to get a tax levy release are:
Payment Agreement
The IRS wants their money and they'd rather cooperate with you to make payments over a longer period of time than try to auction off your assets. A payment agreement is similar to an installment agreement except you will normally pay less than the total amount you owe the IRS and you will also make smaller payments. For this to be an option, you have to prove you don't have the ability to follow the standard installment agreement.
Pay It Off
If you pay what you owe immediately, the tax levy release will happen right away. This usually isn't an option for many people by the time they reach this point but if you can do it, all your problems pretty much go away overnight.
Offer in Compromise
This is very similar to what a credit card company offers if you've owed them money for a long time. You can make an offer that is less than the total amount that you owe and you can go from there. If accepted, your tax levy release will happen right away. If not, you will have to try some other type of payment options.
These 3 options are the fastest and easiest methods to get a tax levy release. Since you don't have a lot of time, these methods ensure you handle it immediately.
Posted by LWM Team on Fri, Feb 26, 2010 @ 02:28 PM
If you are unfortunate enough to get a tax levy, this means the IRS has given you chances but you didn't cooperate with them, or maybe just threw that mail away. Either way, you will need to work fast to make sure you don't end up with collections coming after your assets. Here is a small list of 5 ways to get a tax levy release.
- Pay what you owe. This is the fastest and easiest way to resolve the situation before any of your assets get seized. This could cost a lot of money but it may be easier to pay small interest for a bank or other loan so you can handle this right away.
- Ask the IRS to let you set up a payment agreement. This is much like the installment agreement the IRS allows but the payments you make will be smaller. This is a great option to get a tax levy release while still taking care of your debt with the IRS. Make sure you keep to the payment schedule and don't miss any payments at all.
- Prove that your assets don't have equity. If you are already facing hard times and your car is a piece of junk, let the IRS know this. They won't seize your vehicles if they are old, need severe repairs, or don't run. They don't know the car you bought 2 years ago was destroyed by vandals but a picture will help you get that message across clearly and immediately.
- Appeal. Yes, you can appeal the IRS levy right away then you may not have to worry about a tax levy release at all. Sometimes collectors won't use ethical practices when dealing with you. If you suspect they weren't honest with you, that's definitely grounds for appeal.
- File Bankruptcy. This should be a last resort option but this can be a tax levy release by order of the courts. This isn't a step that should be rushed so make sure you consult your accountant or a tax professional.
Posted by LWM Team on Thu, Feb 25, 2010 @ 01:52 PM
Many people will find themselves in a position at some time in their lives when they owe the IRS back taxes. It's easy to ignore this and hope it will simply go away but it won't. If you haven't made any kind of agreements with the IRS, chances are you'll end up with a wage garnishment. A wage garnishment is when they take a percentage (25% usually) before you get your paycheck. The first time this happens, you'll be very unhappy, especially if all of your utility bills are due. A wage garnishment release can help you remain in a stable financial position.
To get a wage garnishment release, you'll have to provide a good reason for it to the IRS. A good example is if you made $3000 per month before the garnishment, afterwards you only made $2250, and you have monthly bills totaling $2500. Obviously, the IRS will realize this isn't going to work and may lead to you having to sell your property. They don't want that to happen and will usually authorize the wage garnishment release if you comply with a payment plan.
Before you start this process you will want to get all needed documents in order and these are: Paycheck stubs, bank statements, bills, property appraisals, and proof of other types of income such as child support, worker's compensation, and other income types. The more you provide, the better your chances.
Using a service or tax attorney is the best way to get a wage garnishment release. They will not charge you an arm and a leg because they are trying to get you tax relief and understand the burden you already have financially. The Internet is a great resource to find a service that will do this for competitive prices.
Posted by LWM Team on Wed, Feb 24, 2010 @ 03:00 PM
One of the most common ways the IRS uses to get back taxes from you, is wage garnishment. First you'll receive a letter in the mail that shows you how much will be garnished per paycheck. The average amount is a whopping 25%. With the price of renting a home, utilities, paying for a car, and other needed expenses, you may need a wage garnishment release to be able to continue your life as usual without having to make major changes or get yourself into debt in some other area such as your credit.
A wage garnishment release can happen in quite a few ways. Naturally, when you pay it off, it will stop but you can also have a wage garnishment release by:
- Proving the garnishment is giving you financial difficulties.
- Showing the IRS you can pay it off better without the garnishment.
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Already having an installment agreement with the IRS.
These are the most common ways to get a wage garnishment release but it can be quite difficult to get some of them going on your own. Talking to the IRS can be difficult and intimidating for a lot of people so your best bet is to find a tax attorney who can handle things for you.
The worst thing you can do is get further in debt by using small loan services every few months to help keep your finances where they should be while this garnishment is in effect. This is just a temporary “band-aid” for your finances and after a few months, the interest from these small loans may end up worse than the garnishment itself. If you feel like you have the knowledge to do it yourself, you can visit your local IRS office and get all the proper forms but if you get denied, you will need additional help.