Can The IRS Really Take Money Out of my Bank Account?

 So you got a certified letter from the IRS...

The tax man is threatening to take funds directly from your bank account.

You're wondering if the IRS can really take money directly out of your bank account, and the answer is:

"Yes, they can!" 

If you received a "Notice of Intent to Levy" letter from the IRS, keep reading for ways to save your funds! 

How a IRS Bank Levy Works:

After the IRS sends you a Final Notice in the mail, a bank levy could strike at any time. (When I was a Revenue Officer, we loved using the element of surprise!) If you're unlucky, your funds may already be levied at this point! 

IRS Bank Levy, What Happens: 

 In a nutshell, the IRS freezes your funds, blocking your access to them (even if you have vital bills to pay). Don't respond before the 21-day deadline and your funds will be gone for good, so have to act fast! 

The IRS Bank Levy Secret:

If your funds are already seized, there's still hope to get them back. It'll be hard, but if you can prove you need those funds to pay for basic needs like rent or your utility bills, you could get the money back.

Get IRS Bank Levy Help: 

 I've revealed one secret to potentially get your money back from the IRS after they empty your account, but it's easier said than done.

The Truth Is... 

Good luck proving you need those funds, you'll need it! The IRS doesn't care, they just want their money. Working with a professional is best when it comes to retrieving bank levy funds, or preventing one from happening.

Need Help? If you need help getting your funds back from the IRS, or stopping a bank levy, call 1-888-415-1337, fill out the form to the right, or e-mail me. I'll get back with you immediately with advice for solving your IRS Bank Levy issue

Discharging Tax Debt Through Bankruptcy? Think Again!

You're desperate. Thoughts of your Tax Debt are keeping you up at night.

Discharging your tax debt through bankruptcy is starting to look like a good idea...

Reality Check: Sorry, but it's nearly impossible to have your debt qualify to be discharged with bankruptcy.

Even if you do, it's not the best choice for you.


Yes, you can discharge tax debt with Bankruptcy, but you have to meet the following Three IRS Bankruptcy Requirements before you debt can be discharged.

1. Three-Year Rule: If your tax debt is older than three year, you're out! You won't be permitted to     discharge the debt.

2. Interest and Penalties Continue: Your IRS account will be placed on hold. IRS collections will stop, but interest and penalties fees will continue to accrue on your account! Your debt will double or triple in size if it isn't discharged in the end!

3. You'll Owe For Years: The IRS extends the statute of limitations when you try to discharge your Tax Debt through Bankruptcy. This means by the end, you'll owe more and the IRS will have more time to collect the additional funds!

There's still hope. Bankruptcy isn't a good option for discharging your tax debt, plain and simple. However, the IRS offers plenty of alternative plans that will help you strike back against the IRS without negative affects, like extending the statute of limitations on your Tax Debt!

I  highly recommend working with a professional to find the right plan for you. If you need help, feel free fill out the form on the right/give me a call at 1-888-415-1337 and we'll find the right plan for you!

IRS Tax Debt and Marriage Blues: 'Til Debt Do Us Part

A true story...I received the following e-mail from a lucky bride to be who had a question about her future husband's IRS tax debt:

I am engaged to a man that is deeply in debt to the IRS. He has no property in his name that the government can take. If I marry him, and change my name to his, can the IRS seize my property and income to satisfy his debt?

The Answer is Yes: Your income and assets are in jeopardy if you marry into Tax Debt. Keep reading to learn what to do if you're facing an IRS Tax Debt Marriage Blues. 


Sorry, but... When you marry someone who already has IRS Tax Debt, you're marring their Tax Debt too! You will be just as  responsible for paying back that debt as your new spouse.

So what can this soon to be bride do in the meantime to avoid IRS Tax Debt? There is a solution called Innocent Spouse, but it doesn't normally apply to newlyweds, especially when the spouse to be already knows about the debt.


I'm going to list the Requirements for Innocent Spouse because I know some of you out there may be able to use it to solve your IRS debt brought on by a loving spouse (or ex-spouse!)

• - The taxes owed have to be theirs. That means if you filed jointly, you owe it. The consolation is that they do too.
  
  
• - You can prove you were unaware of the debt, thought your spouse was going to pay, or were unaware of items changed in an audit.
  
  
• - The debt would cause you hardship. This means you couldn't afford to pay basic living expenses like food and utilities.
  
  
• - You suffered abuse in the relationship.

Wedding Surprises: Luckily this woman knew about the debt, and was able to get information that can help her deal with the situation she's in. However there are so many more marriages where a spouse finds out only too late that they now have a debt due.

Contact a professional for help as soon as possible if you married into Tax Debt or your spouse caused you a debilitating Tax Debt issue.

Can I be Fired for Having a Tax Lien Filed Against me?

The Answer: Yes, it's possible to get fired over having a tax lien filed against you. Tax Liens also negatively affect your ability to find a job!

Of course, this doesn't mean that you'll never find a job, but a Tax Lien  greatly limits your possibilities.

Job Fields at Risk:  You could be fired for having a Tax Lien Filed Against you if your career falls under any of the following...

-Federal or State Job
-Civilian Contractor with the Department of Defense
-Any job with a license requirement (Financial Planner, CPA, etc.)
-Any job that requires background/credit check(s)

Goodbye, Promotion. Many companies require a Credit Check before a promotion. This means a Tax Lien could be keeping you from making more money at work

Reassignment/Retention: Ready to move to an office location closer to home? A lot of companies are requiring credit checks for reassignment or even retention. Having a Tax Lien could mean losing your job!

Lien Removal Review: The IRS knows that Liens make people pay because it puts their work and their homes in jeopardy! And unfortunately,  it’s not easy to remove a Tax Lien.

Even when you're in a payment arrangement with the IRS, a Lien will not be removed unless you take specific steps to do so. If you’re having trouble negotiating with the IRS, consider hiring a professional to represent you.

Got an IRS Notice of Deficiency? The IRS is Out to Get You!

You were sure you paid... You did your due diligence as a taxpayer and paid your taxes on time. This is why the IRS Notice of Deficiency you just got was like a punch in the gut!

What does the IRS Notice of Deficiency mean? Just that. You amount you paid was deficient, and now you have to pay more! 


If you're sure you don't owe, get the facts and see what you can do to contest this notice:

Timing is Everything

Your Notice of Deficiency outlines a 90-day deadline for taking care of the proposed amount owed. You have to resolve your issue in this time or the IRS may hit you with IRS Levies and Liens!

Check for Mistakes

Even the mighty IRS machine is fallible. Granted, it's an efficient machine, mistakes can happen! Contact the IRS if the Notice of Deficiency was sent to the wrong address.

Court Time

The IRS Notice of Deficiency provides instructions for filing a petition with the tax court if you're positive you don't owe. Use Form 12203, "Request for Appeals Review."


Reality Check: I have to be real here, your chances of winning a case against the IRS without professional help is next to nonexistent. You'll want to gather substantial documentation to prove your point and work with a professional to win against the IRS beast!

Tax Fraud: Can The IRS Really Throw You in Jail?

You may have gotten away for a little while, but the IRS is a well oiled-machine, designed to hunt you down. Literally, the IRS has machines that track Tax Cheater's patterns. They can see the "Trail of Lies" and follow it straight to you!

Remember: even if you made a simple mistake, it's still against the law, and you can go to jail!

Top Three Tax Cheats

The IRS is laser-focused on these three common tax cheat moves, just waiting for you to slip up!

1. Underreporting: Yes, underreporting is a crime! List your honest income and include any income you're making from side work, too!

2. False Claims: Don't claim dependents or medical expenses you don't have.

3. Innocent Mistakes: Make sure you review your tax paperwork very carefully, sometimes and innocent mistake can land you in a heap of trouble with the IRS.

Badges of Fraud

IRS Auditors and automated systems are trained to spot the following common signs of Tax Fraud.

1. Sources of income are not listed.

2. Deductions seem overstated by a huge margin.

3. Obvious personal expenditure deducted as business expenses.

4. Keeping two sets of books, or no books at all.

5. Taxpayer Transfering all of their property.


Crime Doesn't Pay: Tax Evasion and Filing False Statements can land you a jail sentence of up to five years. In both cases, you can be fined up to $250,000. With additional fees and expenses, it's clear that Tax Fraud doesn't pay!

The Top 5 Fast Ways to Repay Your IRS Tax Debt- Now!

You're in debt to the IRS and you want that burden gone now!

You're not alone. A top question I receive is,


"What's the fastest way for me to repay my IRS tax debt?"

It won't be easy, but here are five options that may help you repay your tax debt as quickly as possible:

1) Pay the IRS in Full
You may have the funds available to pay the IRS in full. If you do, I highly recommend it. If you've got the cash, face the music and pay up!

2) Use Your 401k
Do you have any investment accounts like a pension or 401k? You may need to make an early withdrawal to pay off your debt. Just make sure you pay the taxes on the withdrawn money or you'll owe the IRS all over again!

3) Sell Your Assets
You may have assets you can part with. If you have boats or multiple cars, you may need to sell them. Just understand that making a profit on the sales may contribute to future tax debt, as well.

4) Home or Property Equity
The housing market isn't the best these days, but if you can take out an equity loan or refinance, you might want to consider to take care of your tax debt. This will be next to impossible to do if you have a tax lien placed against you.

5) Asking Your Family
No one wants to owe their relatives. But, if you have wealthy kinfolk, you may want to consider asking for their help.


Taking it Slow: You don't have to repay the IRS fast. There are slower options that will help diminish the danger of IRS Liens and Levies. These options also do not require drastic changes to your lifestyle or risk giving you a future tax debt. If you feel overwhelmed deciding what's right for you, feel free to contact me for help.

Answering Your Top 5 IRS Wage Garnishment Questions

Wage Garnishments are a  brutal and effective method the IRS uses to collect back taxes. It hits you below the belt; hurting your pay, your lifestyle, and even your pride! Let's face it, it's embarrassing!

Today I'll answer your Top 5 IRS Wage Garnishment Questions, and teach you how to remove a IRS Wage Garnishment of your own once and for all!

 
1. How much is the IRS allowed to take from my paycheck?

What is taken out of your paycheck depends on your filing status and number of allowable exemptions on your W-4. They rarely leave you enough money to cover basic necessities. You could be left with as a little as $791 a month! If you receive 1099 income, the IRS can take an entire check.

2. Can my boss refuse to IRS Wage Garnishment?

It wouldn't be wise for your boss or payroll department to prevent the garnishment. Not only is it illegal, but the IRS will hold your employer personally responsible if the garnishment isn't enacted.


3. Will the IRS leave me enough money to live on?

Short answer "Not unless you are living 20 years in the past." The IRS only leaves enough to barely survive. For most people this means deciding which bills they have to give up. Often it comes down to whether they should pay the utility bill or put food on the table.

4. Does the IRS still take out the regular taxes on my paycheck when they've issued a IRS Wage Levy?

Yes they do. In fact your IRS Wage Garnishment comes out first, and then your regular taxes are taken out of what’s left over.

5. I’m an independent contractor and don’t get a regular wage. Is there something like an IRS Wage Garnishment that the IRS can hit me with?

Absolutely, they can garnish any money you make from a job. As stated before, if you make 1099 income, the IRS will take an entire check. In addition the IRS can go to your clients and demand payment directly from them before you get paid (accounts receivables); which could damage your business’ reputation.

How to Remove Your IRS Wage Garnishment:  You have to find a way to voluntairly repay the IRS. Since the IRS already has its paws on your pay, it won't be easy. I recommend consulting with a professional, they will quickly remove the IRS Wage Garnishment by finding the best payment arrangement for your lifestyle.