Finally Caught: You may have found the way to beat the system for a little while. But no one escapes Uncle Sam or his team of IRS Hitmen for long. The IRS has many weapons they use to make you pay. Know the enemy. Then when the IRS strikes, you can fight back.
Bank Robbery: One of the most dreaded methods the IRS uses to collect on taxes is the Bank Levy. The IRS locks you out of you own bank account. Then they seize everything you have in it. This may seem illegal, but it's not. You or your bank has no say in this matter, it's a legal weapon they use to collect the IRS debt.
- Fight Back: When a Bank Levy is issued, you have 21 days before the IRS seizes your funds for good. This is your window of opportunity to act fast and contact the IRS and negotiate a solution. But let me tell you from experience, I rarely see Bank Levies lifted. The IRS can practically taste that money and they don't want to let it go.
Credit Attack: Another way the IRS collects on back taxes is implementing a lien on your credit. This is the kiss of death for your credit. Forget getting a loan, buying a new car, opening a new credit card account, or even signing a lease with one of these bad boys looming over your credit report.
- Fight Back: If you can prove to the IRS that the levy is preventing you from paying off your debt, they will consider the levy. A good way to do this is by letting them know you want to get a bank loan to pay off your debt.
Goodbye, Paycheck! My favorite way to collect debt was issuing a Wage Levy. This is when the IRS contacts your employer and lets them know they will take a percentage of your paycheck. They can legally garnish up to 75% of your check. I liked the 75% Garnishment because it really grabbed the attention of the taxpayer. And the worst part, Wage Garnishment can go on forever if you don't set up a payment arrangement.
- Fight Back: There are two good ways to prevent the IRS from Levying your Wages. The first would require you to round up documents to prove you'll be living without basic needs if the IRS levies your wages. The second way is to come up with some kind of payment solution. As long as you pay the IRS monthly, they will lift the Garnishment.
It's not over yet... I've provided some ways you can fight back against the IRS and their weapons. But this is only the start of the battle. You ignored the debt, and now the IRS wants their money.