Discussion:Releasing garnishment
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Discussion Forum Index --> Tax Questions --> Releasing garnishment
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| Boy today has been a long one! The taxpayer with the 6-8 years of taxes came to me because her wages were being garnished $1300 every two weeks. I was told by collections two weeks ago that I get the returns in (i submitted only 2000 - 2006) and they would release the levy. Now....two weeks later they say because the taxpayers owe $28k in taxes that there is no way they will release the lien unless I can prove hardship. Well, I can not prove hardship....I am looking for direction here. I know these dummies were negligent...but they are trying to get their act together. | |
| 1 February 2008 | |
| Releasing a levy and a lien are two entirely different things. Which one do you mean here? | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| sorry....garnishment means levy? | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| they are garnishing her wages | |
| 1 February 2008 | |
| You are in over your head. You are using lien and levy interchangabley not to mention the other issues already discussed. The IRS will absolutely release the levy. You must provide a 433-A or F or give them the information over the phone. They will replace the levy with an installment agreement. They MUST do that. This area a practice is not for dabblers. | |
| 1 February 2008 | |
| of course they won't release the lien - the taxpayers owe the money and you haven't proved that it would be in the government's interest, or create a hardship, to release the lien. | |
Death&Taxes (talk|edits) said: | 1 February 2008 |
| They will substitute an installment agreement if you give them the 433-A for individuals and if in business, the 433-B. These will show what they can afford to pay, but this can be time consuming work and these type of negotiations are sometimes best handled by specialists, like several who post here. | |
Death&Taxes (talk|edits) said: | 1 February 2008 |
| Fixer and I must have been channeling each other's minds. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| IRSfixer...please clarify....other issues already discussed. | |
| 1 February 2008 | |
| You need to prepare Form 433-A if the account is assigned to a revenue officer in a field IRS office or Form 433-F if it is ACS. The taxpayers have to show their ability to pay after applying IRS national and local expense standards. http://www.irs.gov/individuals/article/0,,id=96543,00.html | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| So basically you are saying the levy will not be released until this step occurs. That is what I am trying to clarify! | |
| 1 February 2008 | |
| I'm going to sign on with Fixer here, it sounds like you're a little outside of your comfort zone and should refer this client elsewhere. It'd probably be better for both of you. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| When these taxpayers came to be to prepare past returns, I was not aware of the tax bill size. I will be the first to admit this is unfamiliar territory for me which is exactly why I am on this site. | |
| 1 February 2008 | |
| One great source of education on this topic is the NAEA's NTPI | |
Death&Taxes (talk|edits) said: | 1 February 2008 |
| I hinted at the same course so I am with Dingo and the Fixer.......and if you decide to try to plow ahead and fill in the forms [if you have Tax Tools, they are there], and you should find they should only pay 1150 a month, e.g., make sure it is done by direct withdrawal, lest these yoyo's will be back to you the first time they default. And remember that they must stay current with their taxes while this agreement is in effect. | |
| 1 February 2008 | |
| Other issues were in the other thread. I am talking about your lack of familiarity with basic process in a collection case. | |
| 1 February 2008 | |
| They will release the levy when the returns are filed, financial information is provided and possibly proof of certain expenses claimed. They are very close to a streamlined IA. This is a very easy case. | |
| 1 February 2008 | |
| and I would say a very typical case - we get these every week in my office | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| Well guys, I do about 2000 returns a year and I guess I am a dummy...because in 20 years I don't get these type of cases! It is all about what one is familiar with! | |
| 1 February 2008 | |
| no you're not a dummy, but you should realize that you may need help and that may include getting more education or working with someone with more experience in this area. Many of us have spent hundreds of hours getting the education so that we didn't have to experiment on our client's as guinea pigs. | |
| 1 February 2008 | |
| I did not mean you were a dummy - I was referring to you being unfamiliar. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| I took the case because they needed returns filed. I have encountered unfamiliar territory. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| Irsfixer....the more I know...the more I realize how much I don't know!! Every year I am in this business I encounter situations that make me love this job and hate this job! I am just being honest and I am the first to get the education and help I need. I have a tax attorney I keep on retainer all year and probably pay $2k a month to for advice "out of my league". I don't consider myself a novice because I have been at this for years....but I clearly am humbled by the knowledge base needed to be on top of my game. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| This may be just a case I need to turn over to him....but I will not learn unless I encounter these situations. Thank you for your guidance | |
| 1 February 2008 | |
| Nancy, 20 years ago I used to go to Problem Resolutions or the freaking District Director in half of my cases. I also used to get in fights with Revenue Officers that only my clients could lose. Now, I count RO's among my friends and go to TA about twice a year. | |
| 1 February 2008 | |
| Just out of curiosity Nancy, if you are doing 2,000 returns a year personally, what level of complexity are these? Or do most of your clients file extensions? | |
| 1 February 2008 | |
| Nancy, getting the levy released is easy. I think you or the client can handle this over the phone. This is not "rocket surgery". | |
Death&Taxes (talk|edits) said: | 1 February 2008 |
| And being a tax lawyer may not be the key either. I worked 8 years for a tax attorney who turned all collection work over to a former R.O., so sometimes that is not a magic bullet. That man would give me the real losers, the ones where he could not be a hero. Problem Resolution, boy does that bring back memories. | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| they range all over the place. Of course if they were complex....there would be no way. Only 10% of these are corporations and multi member llc (which is all I could handle)....and the rest range with the basic Individual Schedule C, E, F. I do not handle trusts, estates, etc... | |
Nancyshoemake (talk|edits) said: | 1 February 2008 |
| My days of tax almanac will cease for a season! Thanks everyone! | |
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