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Automated Tax Levy (15%)
The IRS may take an automatic 15% from social security benefits every month. If the IRS can correspond the government’s Financial Management Service with its delinquent taxes records to show the right to social security it can go ahead. Once an association is proven the tax payer is provided with an IRS notice of the beginning of a 15% levy on social security. A notice of confirmation is supplied by the Financial Management Service when the levy comes into practice.
The most commonly used of IRS collection utensils is the automated social security tax levy. The IRS gets an outcome that is simple, proven and immediate. For the tax payer it is responsible for the greatest adversity. Automated levies on social security benefits resulted in 1.74 million payments to the IRS in 2007. It was anticipated 86 % of the levies came from circumstances where social security was the main or sole income for the tax payer.
Manual Tax Levy (100%)
The IRS can take more than 15% of the social security to a tax payer. A manual tax levy can keep on taking all social security benefits according to the Internal Revenue Code section 6331 (a). The code allows levy on salary, wages and other income plus social security. The automatic levy of 15 % is an extra to the manual levy.
It is when there is no cooperation from a tax payer that a manual tax levy is chosen. This levy must be allocated to an IRS Revenue Officer. The automatic levy is a procedure that eliminates the use of paperwork.
Exemptions on a Manual Tax Levy