Discussion:Intent to Levy
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Discussion Forum Index --> Tax Questions --> Intent to Levy
| 3 May 2006 | |
| Client have an Intent to Levy Notice Issue 2/10/2005
and a "process notice issued" on 03/23/2005 A couple of question: Client does not own any assets< but still I know IRS is prob going against his salary. Then: How fast may I act to try to stop the process? And, Form ?? , pleaseeeeee I don't think a lot of problems in the long run. They are going to have a huge tax refund this year that could be applied to the debt. But, I want to avoid paperwork and hasless. Thank you. | |
| 3 May 2006 | |
| Intent to Levy notices are time critical; the fact it was issued nearly 3 months ago is very bad. You will need to complete a 2848 and get it to the IRS immediately, along with a phone call to the agency. They will undoubtedly take the refund, but still proceed with the wage levy unless you can arrange an installment agreement. There is little chance of avoiding hassles on this one. | |
| 3 May 2006 | |
| Thank you, so much- I'll do it
I already have the 2448-and I 'll contact her for that. | |
| 3 May 2006 | |
| The problem is , she don't give me her appartment number-It is not in the 2448
I don't know if on purpose. Then, she did not get any letter from the tax guys. | |
| 3 May 2006 | |
| No other way to stop the process than an installment agreement?
How much did you change for that?? I understood trying to prove extremily hardship or something like that it could help. Thank you | |
| 3 May 2006 | |
| If the client meets the standards for a minimum acceptable offer you could apply for an Offer in Compromise (OIC). That should put collection efforts on hold until a decision is reached on the OIC. The OIC is a paperwork intensive and time consuming process. Still, based on the time factor involved telephone contact with the IRS is needed immediately. As a word of professional advice, due to time constraints you might want to consider referring this client to someone experienced in these matters. You can then read up on what to do so you will be ready when the next client (and there will be more) comes in who is in the same situation. | |
| 3 May 2006 | |
| Thank you, again.
I'm sure that OIC will not work in this situation- I never did it before- but I spent a lot of time reading about it. I don't see any problem with the installment agreement. The form is self-explanatory. Thank you, again. | |
| 3 May 2006 | |
| Is the IRS going to deal with a representative who is not 1) a CPA; (2) an Attorney; or (3) an EA in an OIC situation? | |
| 3 May 2006 | |
| Has your client received a "final notice intent to levy" letter? If so, you have 30 days from the date of the letter before the IRS levy any wages/bank account. You can appeal the notice to allow the 05 return to be assessed and credited towards the liability by requesting a CDP (collection due process hearing - form 12153). Make sure to mail the form to the address on the letter. Check the box to discuss an installment agreement or OIC.
Collection Appeals Rights: http://www.irs.gov/pub/irs-pdf/p1660.pdf | |
| 3 May 2006 | |||
| Being EA I can do it with the 2448-
I think any tax preparer can do it for his own's clients. But I' m not sure about that. Thank you Jntax,I took note of the Form. I don't think the "final notice" was issued- An IRS agent told me that they stopped the collection process for old debts -total $ 4,000 from years 97,98, 99 --First Problem: Now filing MFJ, they are taking all the refund from the EIC- 3 kids-- I'm getting sick of that- Their file have a thousand pages Second problem: The collection process will be restarted in 2 014. | Funny | ||
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| 3 May 2006 | |
| If they don't agree with the installment agreement, I will tell her to file as Injured Spouse.
First time she said: "But that is not a "solution" we are married- His debt is mine too" I'm learning with the situation- but is time consuming ,and frustrating. I spent a lot of time contacting the IRS... | |
| 4 May 2006 | |
| When you called the IRS did you ask for the CSED dates (collection statute expiration date)? Also, you can put them on CNC (currently non-collectable), just as long as their income is less than expenses (food, clothing, housing, transportation, taxes, court ordered payments, etc). | |
| 4 May 2006 | |
| Take a look at Form 911 for hardship relief. This simple form might allow a delay if you come up with a good reason. The IRS will then deal with it in days!! | |
| 4 May 2006 | |
| I think the status is Currently Non-collectible as Jntax said.
IRS said: "Collection is not currently pursuing. It would be reinstated by year 2 014" To avoid interest acruing I would recommend Installment Agreement. Also "injured spouse" I will check about OIC . Maybe OIC will work for them. Is there any web site to check on that? Tnak you | |
| 4 May 2006 | |
| Last question:
He is making $8.50 She is making the same amount: $ 8.50 Three kids An expert , please , I don't want to be involved in a mission imposible. No assets, no bank account- No money in zurich neither Bahamas (just kidding) In my view, the $ 5,295 can easily be reduced in a 50%. I know a lot of work is required. And, because is my first OIC I'm not planning to charge a lot for that job. | |
| 4 May 2006 | |
| Also, some letter would be need it to avoid my corporation get sued if something goes wrong | |
| 4 May 2006 | |
| You need to use form 433. I have included a link with national standards for food/clothing and housing. Depending on how much you charge it might be better to go with partial payment or CNC until the statute expires, which should be 10 years from the date of assessment. Here is the link:
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| 5 May 2006 | |
| Thank you Jntax- I will use that chart ..for another client.
I'm sure IRS will reject any offer. For a while, I forgot a detail: IRS just need to wait for their 2005 income tax return done to trap his pray. Their EIC almost cover the debt. I din't check the Form 433-A in years, but I'm sure that there is a line "Expected income tax refund" or something similar. | |
| 5 May 2006 | |
| Question:
If I post a whole account transcript , and the 1040X for tax year 2001, Is there anyone ready to give me a hand? I'm not going to enter the whole information if no one will be willing to join me in that effort. Facinating !! Any volunteer? | |
| 5 May 2006 | |
| In reference to an OIC, in my prior post , in the Form 433-A there is no reference to expected tax refund -- but still, I'm sure that they are going to reject any OIC based on that--- Opinions?? | |
| 5 May 2006 | |
| Anyone ready to check an Account transcript and the 1040X with me? | |
| 5 May 2006 | |
| Marineo, posting a client's personal information on the internet or sharing it with others is highly irregular (to put it mildly). | |
| 5 May 2006 | |
Maybe you are right. But
If I post a serial of numbers there . No names.No adress. Just numbers There are millions of taxpayers across the USA Who in the is going to find who in the hell the taxpayer is? | |
| 5 May 2006 | |
| Numbers is the same, in my view, that information
when people said: "My client have this one and that situation. It is personal, but there is no way to identify the client. That is the way every one is helping each other. Thank you | |
| 6 May 2006 | |
| Never mind- Closed case- almost- Nothing to do to solve old years-
Amended for 96,97, and 98 were filed after more than 3 years In my view, tax preparer's big mistake. But, 2000, 2001, and 2002 are in the good track I'm happy- My client too. IRS mistake for 2000, 2001, and 2002----Is going to be solve just filing Form 883-H | |
| 9 May 2006 | |
| For goodness sakes, so much nonsense.
First, Martineo never stated he was going to post unredacted information so lay off the poor guy. If he wanted to email me pdf copies of a Record of Account with the SSNs blacked out, that would have been perfectly fine. Second, some of the "advice" posted here was as wrong as wrong could be. I just hope that before we're representing taxpayers that we have some idea what we're talking about. Third, submitting an Offer in Compromise is again being suggested without anyone having any facts to back that up. Additionally, merely submitting an Offer does not stop collection action. From what I have been able to ascertain accurately, here is what should and should not be done: 1) Martineo, please get Records of Account for ALL years going back as far as the delinquent taxes exist. I will be happy to review them with you. Just black out the SSNs and all other identifying information first;
3) The IRS will do nothing with a form 911, Application for Taxpayer Assistance Order, unless an actual hardship exists. It is not to be used for a levy that MIGHT take place and it normally isn't appropriate even when a levy has already occurred. The hardship rules are VERY narrowly defined; 4) This stuff about restarting the collection process 2014 makes no sense and with 1000% certainty is wrong. I don't believe you and the IRS representative understood each other. They may have been talking about when the last statute expires. I'll know that after reviewing the Record of Account;
6) Your statement about amended returns for 96, 97 and 98 may not be correct. Many are not aware that you can amend very old returns to reduce the tax owed. You cannot get a refund, but to reduce the tax owed, it most certainly can be done. We've done it many, many times. Finally, I know that most of us do not specialize in dealing with IRS Collection issues and that is obvious.Perhaps the next time one of our associations offers a class in basic collection representation, we might want to bone up on the information? I stay away from areas about which I don't have knowledge. | |
| 9 May 2006 | |
| I still think after levy has occured, it appears a hardship does exist with min wage earners plus 3 kids. The form 911 (Application for Taxpayer Assistance Order) is easy to fill out and will take little of your time and taxpayers dollars. Needing money for food to eat, housing rent and gas for getting to work is a perfect reason. This reason has never failed when it was used by me. If it applies.....use it. | |
| 9 May 2006 | |
| From Form 911 instructions SEE #1
When to use this form: Use this form to request relief if any of the following apply to you: 1. You are suffering or about to suffer a significant hardship; 2. You are facing an immediate threat of adverse action; 3. You will incur significant costs, including fees for professional representation, if relief is not granted; 4. You will suffer irreparable injury or long-term adverse impact if relief is not granted; 5. You experienced an IRS delay of more than 30 calendar days in resolving an account-related problem or inquiry; 6. You did not receive a response or resolution to your problem by the date promised; 7. A system or procedure has either failed to operate as intended or failed to resolve your problem or dispute with the IRS. If an IRS office will not grant the relief requested or will not grant the relief in time to avoid the significant hardship, you may submit this form. No enforcement action will be taken while we are reviewing your application. | |
| 9 May 2006 | |
| Copying instructions from a form is meaningless. Equating instructions for submission of an Application for Taxpayer Assistance Order to how the TAS is going to handle that is something quite different, but if you don't handle these matters each and every day, you wouldn't be aware of that. I live in the real world and all I do is handle collection type problems. I could pontificate if I chose to do so, but that wouldn't solve anyone's problems. With 10000% certainty, if you don't have a present major hardship, they won't even consider a 911. Additionally, you must provide a complete 433-A, you must be in compliance, etc, etc. There is far more to it than copying the instructions and telling someone to submit a 911. | |
| 9 May 2006 | |
| Skasselea: Thank you.
I never did representation. I just have three years learning the business. I explained that to her You are giving us a lot . Thank you, again. I'm a responsible person. I talked to the client , studied the forms, get the Power of Attorney , contac the IRS to understand what is going on, and asked for advise from experienced professional. She has no money to pay for an "expert", make no sense to tell her: "Find an expert in dealing with IRS collection issues" I did not charge a dollar to my "client" yet- By the contrary, I spent $15.00 sending certified letters to the IRS- Then, I'm paying with extra time, and few bucks some kind of training. The intent to Levy was issued in 2,005 Date 02/23/2005. Taxref was reading too fast. I don't blame noone for giving me bad advise. People has his own business to run. Let me study again your advice, and the client situation. I appretiate you are taking your time to help people See you, Thank you again | |
| 9 May 2006 | |
| I probably need to change my screen name to Simon Cowell; it seems that I have upset some people with my legitimate advice about posting the information. My reply to the OP was intended strictly as professional advice; I was glad to see in Martineo's response that had not intended to post or share identifying information. However, that fact was not clear in the messages up to that time, and he certainly could have gotten into trouble if he had done that. | |
| 9 May 2006 | |
| 5) Collection Due Process appeals can only be done within 30 days of the Notice of Intent to Levy. Since you didn't even have the case until three months after the Notice of Intent was issued, that is not an option
I think you wanted to say "Final Notice Intent to Levy". You can file a CDP with a "final notice intent to levy" or notice of federal tax lien. | |
| 9 May 2006 | |
| Taxref:
No hard feelings at all. Thank you, all of you. The problem with this case is: She just brought me copies of the 1040Xs- filed years ago. I had no idea about the IRS answer to those 1040Xs She is not explaining in a plain english how the problem happened. The Last info I got: She said: "I got something from the IRS" I thought it was a great news!!! I ll be back, sorry. A client here | |
| 10 May 2006 | |
| Skasslea, I guess one who has only 5 years experience working for the IRS can be 10,000% certain. If he has a hardship...now.....currently.. then he should consider form 911. You or I do not know that fact 100,000%. Pleae back off on those of us that add information as printed by your past employer whether code sections or from instructions. Most of us have some useful information to add to these sites even thou we have not had the honor to be on the GOOD MORNING AMERICA show. | |
| 10 May 2006 | |
| If you wish to question my credibility, go right ahead. I'll put my skills and my knowledge on collection representation against ANYONE in America. I've been doing this solely for 18 years and there is no one more up to date on what's going on with the Service than me. In fact, we had three calls from IRS managers apologizing for their troops misdeeds over the past several days, but hey, I don't know anything. | |
| 10 May 2006 | |
| Record of account for year 2,002 -
If more infor is needed, I have priors amended returns Question: It still a good idea to file another amended return? Here you are- Several Lines with "zeros" are not included
Record of Account- Tax Period: Dec. 31, 2002 As of: Mar 27, 2 006 Filing status : Married Filing Joint (Note: Wife is the taxpayer) Account Balance : 0 A G Income: 14,962.00 Taxable Income: 6,722.00 Tax PER Return: 2,159.00 SE Taxable income , Taxpayer : 11,543 Se Taxable income , Spouse : 3,324 Total self employment tax: 2, 275 code transaction date amount 150 return filed and tax assessed 04-14-2003 $2,159.0 170 estimated tax penalty 04-15-203 $72.00 706 overpaid credit applied 14-15-2003 -$459.89 736 interest overpaid credit 04-15-2003 -$2.59 706 overpaid credit applied 04-15-2003 -$1,696.52 706 overpaid credit applied 04-14-2003 -$72.00 977 amended return filed 04-17-2003 $0.00 764 earned income credit 04-15-2003 -$4,140.00 300 additional tax assesed by examina tion 12-29-2003 $0.0 846 refund 12-29-2003 $4,272.27 776 interest due taxpayer 12-29-2003 -$132.27 977 amended return filed 03-01-2004 $0.0 290 additional tax assessed 11-08-2004 $227.00 777 i nterest due taxpayer reversed 12-29-2003 $7.25 706 overpaid credit applied 03-21-2005 -$250.05 276 failure to pay tax penalty 03-21-2005 $2.27 196 interest assessed 03-21-2005 $13.53 NOW, Just for the wife- The taxpayer. Filing status : Single cycle posted Apr. 15, 2 003 busines income or loss- schedule C- $12, 500.00 business income or loss-sch C per computer $12,500.00 schedule EIC Se income per computer $11,617.00 schedule EIC, Earned income per computer $11,617.00 total income $12, 500.00 total income per computer $12,500.00 Adjustements to income: self employment tax deduction $ 883.00 self employment tax deduction per computer $883.00 Total adjustment $883.00 AGI $11,617.00 AGI percomputer $11,617.00 Tax and credit: standard deduction per computer $ 4 ,700.00 tax table income per computer $ 6, 917 exemption amount per computer $ 3 ,000.00 taxable income $ 3, 917.00 taxable income per computer $ 3, 917.00 tentative tax $ 393.00 other taxes: SE tax $ 1, 776.00 tp tax figures (reduced by IRAF)per computer $ 2, 159 IMF total tax(reduced by IRAF) pwer computer $ 2, 159.00 Total tax liability TP figures per computer $2, 159.00 REfund or amount owed: Amouhnt you owed $ 2, 231.00 estimated tax penalty $ 72.00 bal due using computer figures $ 2,231.00 And finally: INCOME Gross receipts or sales $12, 500.00 (No expenses deducted) | |
| 10 May 2006 | |
| More infO:
Tax year Dec 31,2004, Income tax was filed MFJ. Overpaid amount was more than : $5,000.00 .. But they got zero. $250.05 of that amount was applied to year 2 002. That amount $250.05 is above code 706. And: During 2004 they were entitled to EIC and dependency exemtion. But, last week, she brought me a letter: Tax periods Ending 2001, and 2002. "We adjusted your accont to reflect joint filing status. However , we disallowed EIC , child tax credit, and the exemptions for dependets. They enclosed form 886H asking for information... and I don't know whether it is still time ..or if she has the info to get that form filed. A MESS!!! | |
| 10 May 2006 | |
| And one more information:
She said she can provide the required proof to send the 886H. I don't know if that will be accepted, because the letter was dated 2 years ago. | |
| 11 May 2006 | |
| Skasselea:
Steve: Excellent web site- One of the best I've ever seeing - | |
| 12 May 2006 | |
| Skasselea:
Regarding your point # 6. Okey- No statue of limitations . But if 3 years is the time frame to get a refund, and to get a credit; I don't think that amending could bring any benefit in most of the cases. At least, not in the poor family I'm trying to help. It probably works okey for your rich clients. | |
| 13 May 2006 | |
| My clients are as far from rich as they could be. My average client is self-employed, hasn't filed in 5-7 years and owes the IRS $100,000. | |
| 13 May 2006 | |
| I think I will hate this client:
- Hi. My name is Joe Clever . I did not file an income tax return in my entire life. I'm self employed- I received ten thousand letters from the IRS. And , I got no idea about my deductions. If you look at this shoe boxes, you will be able to help me with the morons". | |
