941 & Business Taxes

IRS levies and garnishments reviewed -- Are they real? How are they released?

If you ignore the IRS - they levy. Period. (*Or if you didn't get your address changed and missed IRS mail, you can get levied too!)

Levies come in a number of flavors:

1. Wage garnishments.
2. Social security garnishments.
3. Bank levies.
4. Accounts receivable levies.
5. Self - employment levies

1. Wage garnishments.

If you receive a wage garnishment from the IRS or your State tax collector, it will take effect on your next paycheck UNLESS you have a lazy (or helpful?":)) personnel office. The IRS will be required to take a certain amount of your check after you fill out a quick survey allowing you some basic living expenses. If you are getting your wages garnished, CALL your payroll office to get

1. A fax number # so we can get the levy released

2. The deadline - time and day -- for getting it released

BE READY TO PROVIDE THIS INFO TO THE STAFF of Washington Tax Services at 1-888-282-4697 SO WE can get your wage garnishment released!

2. Social security garnishments

Like wage garnishments, the IRS will start taking a chunk of your social security payments if you ignore them. Our staff will also help you get these released. But it can take longer as the bureaucracy needs a lot of advance notice to get it released.

3. Bank levies

The IRS can freeze all of the funds in your account. The bank is required to hold it for 21 days - then send it to the IRS. We can get it released. Do note - that you can deposit funds after the levy is placed -- it just affects monies that were frozen. It is a one-time thing. Call your bank and get a fax number for levy release.

4. Accounts receivable levies

If you are a business owner and the IRS has a list of people that pay you - the IRS can levy them too. Like bank levies, the question these folks needs to ask themselves: is did they owe you money when they received the levy? If so - they are required to send it to the IRS. However, they are not required to send monies that they don't owe you. If you have an accounts receivable levy, call them and get a fax "# for levy release.

5. Self-employment income levies

If you are self-employed, BUT have really only one source of income, e.g. you are a subcontractor but NOT a wage earner at Microsoft, then the IRS can issue a levy against this source of income. However, they can go after almost the entire amount of income UNLIKE a wage levy. Please also get a fax # for the company you contract for if that is the case.

Is 2024 the year to solve your tax issue? WATAX is ready to assist you now. Please call us at 1-888-282-4697 or email us a description of your tax issue and we'll contact you promptly.

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