An IRS Garnishment of your cash account or wages can cause major financial stress. The Internal Revenue Service may seem to move slowly at times but back taxes and unfiled returns will eventually be red flagged by the IRS computer system. When the IRS decides to file your tax returns for you, they don’t claim legitimate tax deductions or expenses that you would have otherwise been eligible to use for your tax debt calculations. In addition, the government will add interest and penalties to the balance due. If you fail to respond to the IRS’s notifications regarding your tax debt or default on an existing tax settlement agreement, the IRS can use a wage garnishment and/or bank account garnishment to collect payment in full for your tax liability. The best defense against any forced collection actions is to pay the debt in a timely manner or proactively negotiate a tax settlement with the IRS. If you think your money may be on the line, act fast and call Stern & Associates at (415) 668-3130 to speak directly with an enrolled agent today about your options for tax debt relief.
If you have unfiled tax returns and the IRS determines you owe for back taxes, the government can implement forced collections like the actions listed below:
- IRS Bank Levy – The IRS may elect to levy your bank accounts (checking, savings, etc.) until your total assets can be verified. To get the bank to release the levy, is often very difficult and your cash accounts may be garnished before you can negotiate any tax debt relief.
- Wage Garnishment – The government uses administrative wage garnishment to collect money due for debts like defaulted student loans or court-ordered money judgments for the repayment of tax debt.
- Bank Account Garnishment – The IRS can levy a bank account garnishment to collect cash directly from your checking and savings accounts. Bank account garnishments are usually issued for a given day but the IRS can issue as many as they need to collect for back taxes.
- Tax Lien on Personal Property – Once the government places a lien on your home, you may be forced to liquidate your personal property to pay your tax debts. If not, you will have to pay the IRS before you sell your home to obtain a release for the property’s tax lien.
- Freeze All Asset Accounts – If you fail to respond or meet your obligations for repayment of your tax debt, the IRS may elect to freeze any asset account that they have identified. The money received from the sell of those assets can be garnished for direct repayment of the tax liability.
At Stern & Associates, we help taxpayers nationwide negotiate installment agreements and submit Offers in Compromise to avoid punitive collections such as IRS wage garnishments or levied bank accounts. Remember, you don’t have to go it alone. We are experienced in dealing with IRS garnishments for tax settlement of unfiled tax returns and unpaid back taxes. However, it is imperative that you take actions and respond in a timely manner to all of the IRS notifications you receive. For professional assistance with your back taxes, unfiled tax returns or IRS garnishment, use our website’s convenient Contact Us form to submit your case specifics for a prompt email response. If you have already been notified about an IRS garnishment, you should take immediate action and give our tax relief consultants a call at (415) 668-3130 to discuss your repayment options.