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  • Collecting The Levy

    Tuesday 24th of June 2014 10:25:24 AM

    The Financial Management Service (FMS) is a bureau of the Department of the Treasury, to provide a centralized debt collection service to most federal agencies. The FMS has begun utilizing two Congressionally mandated federal debt collection programs. One is devised to collect delinquent non-tax debt by neutralizing federal payments and the other is to collect delinquent tax debt from those individuals who receive federal payments.

    The Tax Payer Relief Act of 1997 authorized the IRS to collect delinquent tax debts from individuals and businesses that receive federal payments, by levying up to 15% of each payment until the debt is paid.

    The Issue

    A Tax Levy is one of the main tools used by the IRS to collect on taxes owed. There are many different forms a tax levy can take and all of them can be a burden on you financially as well as damaging your credit.

    How A Tax Levy Works

    When the IRS files a tax levy against you they basically jump to the front of the line for any debt that you owe and demand payment right then. If you don’t pay them they will take action against you by enforcing this levy.

    The IRS can levy your property, bank accounts, wages and future tax refunds. By putting a levy on your property the IRS essentially takes control of that property. You cannot sell the property without first getting permission from the IRS. In extreme cases they may take ownership of the property and sell it in an effort to recoup money owed them.

    A bank levy takes place when the IRS seizes control of your bank accounts. They contact your bank and require them to put a freeze on any and all money you have in those accounts. The bank must then turn that money over to the IRS within 21 days unless the IRS notifies them otherwise.

    Typically the IRS will also levy your future tax returns to settle your tax debt so if you were expecting a refund the IRS can take that refund and apply it to the taxes you owe.

    Once a tax levy is filed it becomes public record and will appear on your credit report which can cause you serious problems getting future credit.

    We Can Help Release Your Tax Levies!

    Our team of licensed or enrolled tax agents can help you with any kind of tax levy you may have. We have many years experience dealing with the IRS so we know exactly how tax levies work and how to take care of them. We will aggressively represent you and may find the best solution for your tax problems. Call toll free 855.227.8387 Mon-Fri 6am-6pm to speak to one of our professional tax experts and get a FREE evaluation so we can better serve your tax relief needs.



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