| Under all circumstances when the IRS threatens a | | | | opposed to a continuous levy. The employer is |
| levy, you have the right to representation. If you | | | | required to hold up to the amount owed to the IRS. |
| communicate openly with the IRS, levies can be | | | | This levy attaches to 100% of the funds not yet paid |
| avoided. With cooperation prior to an issued levy, | | | | to the sub-contractor at the time the garnishment is |
| negotiating positions are in good principles. | | | | received. The levy does not apply to future 1099 |
| Bank Levy | | | | payouts. |
| A bank levy is a one-time levy. You are free to use | | | | Electronic Federal Payment Levy Program (FPLP) |
| your account in a normal fashion after the bank | | | | This type of wage garnishment applies to government |
| freezes the amount required by the levy. The bank is | | | | employees and recipients of Social Security payments. |
| not allowed to hand over your money to the IRS right | | | | This program electronically levies your federal |
| away. The money is on a holding period for 21 days. | | | | payments paid through the Department of Treasury; |
| Once that holding period is concluded the money is | | | | Financial Management Services. Under the FPLP, the |
| sent to the IRS and is irretrievable; any future deposits | | | | government generally withholds 15% of the wages |
| can be reached only with additional levy action by the | | | | payments to reduce past due tax liabilities. |
| IRS. However, if you do not resolve your outstanding | | | | It takes longer for the release of this type of |
| tax debt with the first levy, the IRS may by their | | | | garnishment. The levy can remain in effect for several |
| discretion levy your bank account again. | | | | weeks after the IRS agrees to release it due to |
| Wage Garnishment | | | | lengthy government processing. |
| Once the IRS becomes unwilling to wait any longer to | | | | Releasing a Wage Garnishment |
| collect the taxes you owe, they will implement a Wage | | | | Negotiation with the IRS is required to obtain a wage |
| Garnishment action. The most common types of | | | | garnishment release. Possible qualifying reasons for |
| garnishments are: | | | | release are: |
| - Employee Garnishments | | | | Setting up an Installment Agreement |
| - 1099 Garnishments | | | | Promising to pay the total tax debt immediately |
| - Federal Payment Levy Program (FPLP)Notices of | | | | The full amount of the tax debt has been paid |
| intent to levy a Wage Garnishment are sent to the | | | | An amended tax return was filed, showing you do not |
| employer, i.e. your boss, your hiring contractor, or the | | | | owe the tax |
| U.S. government. | | | | Your monthly expenses exceed your monthly income |
| Employee Garnishments | | | | The levy was issued due to an IRS processing error |
| The IRS can demand your employer to withhold a | | | | You are behind on your mortgage, rent or medical bills, |
| portion of your wages from your paycheck and send | | | | etc. |
| it directly to the IRS. Keep in mind; although there is a | | | | The levy inhibits the full collection of the balance due |
| small exempt amount that cannot be levied, this | | | | You Need Qualified Representation |
| amount is often not enough to cover regular living | | | | Instant Tax Solutions can represent you in IRS |
| expenses. | | | | negotiations, resolving your wage garnishment issues, |
| A garnishment upon wages is considered to be a | | | | and bringing your tax problems to an end. We have an |
| continuous levy. It is applied only once and remains | | | | excellent success rate in the release of wage |
| applicable to all future wages until either it is released | | | | garnishments. It is very likely we will be able to have |
| by the IRS for cause or the debt is fully paid. | | | | the garnishment released before your next paycheck. |
| 1099 Wage Garnishments | | | | If you have received an IRS notice of Intent to Levy, |
| This type of garnishment applies to payments owed to | | | | Instant Tax Solutions may be able to prevent the |
| non-salaried subcontractors not on the regular payroll. | | | | garnishment from happening and avoid further |
| A garnishment of 1099 wages is a one-time levy as | | | | collection action. |