Personal Taxes

Wage Levies and Bank Levies - The Importance of Timing and Followup

The clients of Washington Tax Services always expect us to get their wage garnishments and bank levies released from the IRS and State - and we are honored to take on the task. However - even when we do get the IRS to agree to a levy release - there's still important followup and timing needed to get the release to the proper party -- an employer, the bank or the contractor who is holding your funds. This blog post isn't about "HOW' we get levies released - you can read more about that HERE, but rather how the importance of what-to-do with a "Levy release" when it is in hand.

1. Getting the right fax # - your consultant here at Washington Tax Services has probably schooled you in the necessity of getting a fax # for your employer or bank so we know how to get the levy release to. Make sure it is the right one!

2. Following up on receipt of a levy release -- We will illustrate a mishap recently to show the importance of followup. On a Friday - we got the IRS to release a levy to a client's insurance agency thereby releasing $20,000 of funds to our client. We faxed the levy release to the # given to us and then scanned the same form to our client who also faxed it to the same number. He did NOT followup with the agency holding the funds. The next Wednesday - the company sent the $20,000 to the IRS and not to the client. Apparently they NEVER got either of our faxes. You've got to followup with a phone call - is the lesson here, of course.

3. Bank levies: getting the 21 day clock right -- When the IRS freezes your bank account - your bank will hold your funds for 21 days. After that you are dust - the money is sent to the IRS. Recently we released $70,000 to a client. But , whoops - the client was off by two days in their measure of the 21 day period - they were also delayed at getting us info to prepare their returns - pushing us right up to the deadline. The funds were NOT released.

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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