941 & Business Taxes

Releasing levies takes persistence

This week, a customer who owed 7 consecutive quarters of 941 tax liabilities amounting to $44,000.00 hired Washington Tax Services. The IRS usually assigns Revenue officers when a 941 balance hits the $20,000 mark. The IRS agent had run out of patience with this taxpayer and issued levies on everything, including an important source of revenue from Medicaid.

A total of 26 employees were to be paid from the levied funds. The client was in a serious quandary, to say the least.

We asked the Revenue Officer for a levy release based on the hardship of the unpaid employees. We promised to get the client on track and emphasized that this would be her last "get out of jail free card." Her answer: "NO."

If a Revenue Officer says 'no,' you can always go to the Group Manager in the office to appeal the decision. We went also to this person - faxing the list of employees affected by the levy. He agreed to sleep on it. His answer in the morning - "NO."

Finally, we made a COLLECTION APPEAL REQUEST for a person on staff to get a third and final opinion. At this point, we think the IRS realized we weren't going to give up. FINALLY, they caved in and we got a "YES!"

Our client is very happy, to say the least. Her employees are going to get paid! But: she can't owe 941 taxes again. She will need to get current OR shut down the EIN#, start over or find another line of work.

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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