Just the FAQ'S - What is an IRS levy?

The IRS has levied my bank account and garnished my wages.  What should I do?

An IRS levy is a collection method the IRS uses to seize or take your property to satisfy your outstanding tax bill. The IRS CAN and WILL do this. Before the IRS can seize your property, they must do the following:

- They must assess the tax against you first. This means that the amounts owing to
the IRS are not currently under dispute.

- They must issue a notice and demand for payment.

- You must refuse to pay the assessment within 10 days of the notice and demand.

- The IRS must send you a Notice of Levy.

- You must refuse to pay the tax liability within 30 days of the Final Notice of
Intent to Levy. 

Bank levies are a one time levy where the money in your account will be seized on the day of the levy only. However, the IRS can file subsequent levies. 

Wage garnishments can be very embarrassing to you and can be devastating depending on the amount of the garnishment. The garnishment will stay in place until the tax is paid or the garnishment is released.
 
A Tax Lien can also be filed by the IRS. The IRS will usually automatically file a Tax Lien if you owe $25,000 or more. The Tax Lien is not an actual collection method, but a notice to other creditors that the IRS has an interest in property you own. The Tax Lien will usually affect your credit report. The Lien will not be removed until the tax is paid.

Relief from both levies and garnishments are available.  However, you must act quickly! For more information, please contact me at www.estillandlong.com

Just the FAQ'S - IRS Notice

I received a notice from the IRS. What should I do?

The IRS may be sending you a notice for many reasons. They may be asking for payment on a tax liability that has not been paid. They may be requesting additional information from you to verify a tax return you sent in. The IRS has a matching program and if the information you file on your return does not match the information they have on file for you, you will likely be questioned about the discrepancy. They may be sending you a notice that you are being audited. In any case, do not ignore the notice.

Just the FAQ'S - Notice of Assessment

I paid my tax bill late, and the IRS later sent a notice assessing large amounts of penalties and interest.  Is there anything I can do about this?

If you need more time to file your tax return, then you can file Form 4868, which will extend the due date of your return for six months (individual returns only). However, the extension for  filing your taxes is NOT an extension for paying your taxes. If you owe taxes, you must pay the tax due in full by the due date of the return, or the IRS will assess interest and penalties on the balance.

In certain circumstances, taxpayers can ask for a penalty abatement. This is where you ask for a waiver of the penalties based on what is called “reasonable cause” such as an illness or other event which prevented you from paying and/or filing on time. The IRS will waive penalties in some cases. The IRS will never abate interest unless they have made an administrative error.

Just the FAQ'S - Unfiled Tax Returns

I have not filed my tax returns in several years, what do I do?


If you have a filing requirement, then you should file your returns as soon as you can. If you do not file a return, then the IRS can file what is called a Substitute for Return (“SFR”) for you.

The IRS will use information they have on file under your social security number (such as W-2 and 1099 information) and file the return for you. Of course, when they do this, you do not get credit for many deductions that are applicable. Therefore, you are almost always better off filing the return yourself.