IRS Problems:

As a former IRS-Hitman I know first hand all of the collection tricks that the IRS uses.  The IRS can make your life very difficult if you owe them money, and have an arsenal of methods to make sure they get their Uncle Sam his money.  If the IRS has hit you with one of these vicious collection actions, don’t put things off.  Contact Tax Defense Network today to get the ally you need to fight the IRS! 

Tax Lien

A Tax Lien is just one way that the IRS enforces its claim against you for taxes owed.

IRS Tax Liens are black marks on your credit and can make it nearly impossible to get a loan for anything. 

Tax Liens are also public records, which mean they will show up on your credit report and stay on your credit report for 10 yeas.  That way even if you can’t pay on your debt to the IRS they can still ruin your credit.  A tax lien can only be removed when the IRS tax debt is paid in full.   

Bank Levy

An IRS bank levy is when the IRS seizes your bank account. The bank is instructed to freeze any money in the account and to forward the funds to the IRS. Banks are required to follow the instructions of the IRS and the IRS imposes serious penalties upon banks that disregard the IRS’s instructions.  IRS Bank Levies aren’t restricted to just your bank account.  The IRS can seize any account that you have money invested in.  This can include 401k, pensions, IRA’s, escrow accounts, etc… 

Bank levies often happen because taxpayers procrastinate in dealing with their tax issue. Don’t wait for the IRS to start aggressive collection efforts.

Penalties and Interest

The IRS starts adding penalties and interest onto your debt immediately.  Penalties for “Failure to Deposit”, “Failure to File” and “Failure to Pay” can double your original tax debt within a short period of time.  Penalties and interest together add about 2% to your debt each month.  That’s an annual increase of 24-25% to your debt.  That means if your tax debt started out at $10,000, your interest and penalties would be $200 per month!  That would increase your $10,000 debt to as $12,400 in one year. 

Wage Levy

An IRS wage levy is one of the most ruthless collection tactics in the IRS’s arsenal.  A wage levy is also referred to as an IRS wage garnishment.  An IRS wage levy notice is sent by the IRS to your employer requiring that your boss has to withhold your pay and to forward it directly to the IRS. Employers are required to follow the instructions of an IRS paycheck levy notice. If employers don’t comply with the IRS they will face serious penalties.

A wage levy can cause between 50-75% of your paycheck to be garnished.  The amount of your paycheck garnishment is calculated based on your gross pay.  That means after the IRS paycheck levy has been taken out you still have your regular taxes removed from your paycheck which causes your final pay to be so reduced feeding your family is a challenge.    

If you’re self-employed you are not immune to a wage levy, it just takes a different form.  The IRS can place an IRS wage levy on your accounts receivable. Those businesses and individuals that owe you money for goods or services will receive a notice from the IRS demanding your payment go to the IRS.  

As you can imagine, wage levies can have a devastating impact on your financial situation.  Some jobs will even terminate employees who have an IRS wage garnishment; for example any job that requires a security clearance.  A wage garnishment can also do damage to your business’s reputation.  An IRS paycheck garnishment can remain in place until the tax debt is paid or until it is resolved through some other means.