Monthly Archives: August 2018

IRS Settlement In Monroe, NC

Today, August 21st, 2018, our IRS tax relief team celebrates an Offer in Compromise success story. Our client, Lacey H., from Monroe, NC, has received word that his IRS settlement has been accepted.

Lacey called our IRS tax defense team on April 15th, 2017. He owed $65,000. Lacey had an Installment Agreement with the IRS. He had a 401K. we provided Lacey with his options during his free and confidential consultation.

Our IRS Tax Lawyers prepared his 2016 tax return to make Lacey compliant with IRS law. We then proceed with his Offer in Compromise. Today, our IRS tax relief team announces that Lacey settled his $65,000 tax debt for a grand total of $11,846.

Our IRS tax relief team provides tax defense to Americans throughout the United States.

For your free and confidential consultation, call 1-800-589-3078.

IRS Tax Relief in Mississippi – IRS Settlement

Our client, David T. from Olive Branch, MS has received his IRS Offer in Compromise settlement. David has settled his $67,000 for a grand total of $500.00.
David came to Flat Fee Tax Service, Inc. in July 2016. He had not filed his tax returns in 10 years. The IRS was ready to levy (garnish) him. Our IRS tax relief team, led by our Tax Attorneys, provided David with a tax defense and we have settled his tax debt. Today, David has his Fresh Start.
Our IRS Tax lawyers provide IRS tax defense for Americans throughout the United States.
If you have an IRS tax debt and need help,
call our team at 1-800-589-3078.

The Difference Between A Tax Levy And A Tax Lien

Federal tax liens and tax levies are the enforcement staples of the Internal Revenue Service. They are two of the very common methods because they are the easiest to implement. The IRS computer matches up the taxpayer’s name with their tax debt and current employer. There isn’t an individual sitting at a desk looking at your case.  The IRS uses a tax levy to get the money it’s owed if a taxpayer doesn’t write a check voluntarily, or for that matter, quickly enough.

Federal Tax Levies

A tax levy is not available for the general public to see and does not by itself affect your credit rating or prevent you from selling your property. However, if the IRS serves a tax levy on your bank, then it is required to send all of your money to the IRS. The bank can not immediately send your funds to the IRS. Instead, Internal Revenue Code Section 6332(c), provides that the bank must hold onto the funds for 21 calendar days.  Needless to say, you do not have a minute to waste. The 21-day “bank hold” includes Saturdays, Sundays and holidays. You can expect that the bank will notify you of its receipt of the tax levy. However, this may take a few days until after the bank receives it and that 21-day clock continues to tick. The 21-day period is extremely important because it gives you an opportunity to negotiate with the Internal Revenue Service to release the tax levy before the bank sends the funds. While it can be difficult to get the IRS to agree to release the tax levy, an experienced IRS Tax Attorney can sometimes get this accomplished, but it will depend on your overall situation including such factors as:

  • How much money is in the bank
  • The value of your other assets
  • The amount of your income and expenses
  • The total amount of your tax bill
  • Whether you have been cooperating with the IRS by responding to their inquiries
Don’t expect to get rapid notification from the IRS that they have sent a tax levy. The internal operating procedures of the IRS known as the Internal Revenue Manual specifically instruct its employees to delay sending a copy of the tax levy to the taxpayer.
A tax levy sent to the bank is a “one-shot” tax levy. It only attaches to the funds in your account at the minute tax levy is received.
A tax levy on wages (wage garnishment), commissions, or other similar payments is a continuing levy. That means that unless the IRS agrees to release the levy, your employer will have to continually send the bulk of your paycheck to the IRS until your entire tax liability has been satisfied.
If the IRS sends a tax levy to your employer, it is required to send your paycheck to the IRS minus a very small amount which is exempt. There is no 21-day holding period. The tax levy is effective with your very first paycheck after the employer receives the tax levy. Since there is no holding period, if you find out the IRS has served a tax levy on your employer, it is extremely important to engage an IRS Tax Attorney to begin immediate negotiations with the IRS BEFORE your next paycheck. Once your funds have been forwarded to the IRS either by the bank or your employer, you are not getting them back.
CALL 1-800-589-3078

Federal Tax Liens

A tax lien first arises when a person who owes tax fails to pay the tax after an official “demand” by the Internal Revenue Service. The federal tax lien is sometimes referred to as a “secret lien” because even though at first there is no public record, it attaches to all of the taxpayers’ property and rights to property – both real estate and personal property – as of the date the tax is assessed. The consequences of this is that if taxes are assessed against you on July 1st and you give the property a third party as a gift on July 2nd, the tax lien continues to attach to that property even though you had no knowledge of the existence of the tax lien and even though the person who received the property didn’t know that the tax lien had arisen.

This occurs frequently in divorces when one spouse who owes taxes to the IRS transfers ownership of a property to the other spouse as part of a marital dissolution. Even though neither spouse is aware of the tax lien, it continues to attach to the property in the hands of the spouse who didn’t have any tax liability, and the IRS can collect the taxes owed by seizing and selling the property.

Certain third parties are protected from the impact of the secret tax lien. These are generally people who gave “fair value” for the property received. For example, if your home was subject to a secret IRS tax lien and you sold it to a third party for its fair market value, the IRS could not go after your home once it had been transferred to someone else. To be clear, this rule would not be of any help if the person who received the home paid less than its actual value.

When most taxpayers or tax attorneys refer to a federal tax lien, they are actually referring to a “Notice of Federal Tax Lien” (NTFL). A Notice of Federal Tax Lien is a document filed in a public place such as a County Recorder’s Office or with the Secretary of State. It is a notice to the world that you owe taxes. A Notice of Federal Tax Lien generally lists the amount of the taxes owed, the type of tax, and even the years for which taxes are owed. It also lists the date the tax was assessed. It is worth noting that the Notice of Federal Tax Lien is a static document. Therefore, if you make payments on your tax liability, the Notice of Federal Tax Lien will continue to list the same amount due. Likewise, as interest and penalties accrue it will not be updated to reflect the additional amounts due. That is why the amount listed in the NFTL is not a true reflection of your tax liabilities.

The Notice of Federal Tax Lien will be picked up by the various credit reporting agencies and will cause significant credit problems. If you own real property and try to sell it, the IRS will be paid the equity in your property. The tax lien does not, however, take any money out of your bank account.

We hope this information regarding tax levies and tax liens was useful. Should you find yourself with either IRS problem, our IRS tax relief offers a free and confidential consultation.

Tax Debt Help: Complete IRS Tax Solution Site

Tax Debt Help: Complete Tax Solution Site

Flat Fee Tax Service, Inc. can help in resolving many IRS tax problems an individual or business may have by using our guides and informative IRS tax relief blogs. Our tax relief team takes pride on having a comprehensive assortment of IRS debt relief informational articles and guides to dealing with particular tax problems.

You can find the exact information you are looking for by either navigating to your desired tax resolution or by reading more about your tax problem in order to find what your best solution might be. IRS tax laws and remedies are complex so it is generally recommended that you work with a licensed tax professional like the IRS Tax Attorneys at Flat Fee Tax Service, Inc. If you are unsure of the best tax defense solution, what solutions you may qualify for, or you don’t really have the time to work with the IRS or your state directly, feel free to request or call our tax relief team for your free and confidential consultation. Our tax relief fees are posted on our website for all to see.


Tax Debt Settlement Help – How Do You Settle With the IRS

Whether you are looking for information on an IRS settlement through the Offer in Compromise program, seek an IRS penalty abatement, be designated as an innocent spouse or you want to find more out about tax settlement services, Flat Fee Tax Service, Inc. has information and guides on IRS settlement for your unique tax and financial situation.

IRS Payment Plans: Federal Tax Repayment Plans

Not sure what IRS installment agreement (payment plan) to use to pay off the back taxes that you can’t pay in full? Find detailed instructions on which payment plan to use depending upon how much you owe and your current financial situation. Read more about our services related to helping with IRS payment plans.

Tax Problems: Information on Solutions to Tax Problems

Do you know what your IRS problem is but don’t know the best tax relief solution? Read more about your problem to get a better understanding of it and what you can expect. You can formulate a plan of attack and work directly with one of our IRS Tax Attorneys to help with your unique tax problem.