Most people don’t realize that in cases of bank or wage tax levies, payments made to the IRS cannot be specifically designated. Because levies are not considered voluntary payments, the IRS applies the monies in the most advantageous way to the government. Under the Internal Revenue Service IRM, the rule states:
5.11.5.5 (09-14-2010) Levy Payments
- Credit levy payments on the date they are received. Apply the money in the most advantageous way to the government. Generally, apply it to the oldest assessment first. The taxpayer can not designate how to apply the money because this is not a voluntary payment.
However, payments such as Estimated Taxes, made to the IRS can usually be designated to a particular year or tax period. As long as the payment is a voluntary payment, the taxpayer can simply write his/her social security number and the tax period on the check and the IRS has no choice but to place the check exactly where the taxpayer wants the payment to be applied.
Should you have any questions regarding IRS tax levies call the experts at Fresh Start Tax LLC or visit http://www.freshstarttax.com/irs-bank-levy.php.
IRS Tax Levy Payments – Can they be designated? Former IRS Agent – Tax Expert is a post from: Fresh Start Tax Blog
Related posts:
Fresh Start Tax LLC Hire true affordable tax experts Since 1982 “A” Rated by the BBB Former Agents of 25 years Immediate Tax Help
If you need immediate IRS tax help and need quality tax representation to get the very best result possible call us for a no cost professional tax consult.
We are fast, affordable and very assessable. We are “A” Rated by the BBB. Call us today 1-866-700-1040 and you will never speak to the IRS.
We handle all negotiations. We taught Tax Law at the IRS. We get results the day you call us. Do not be ripped off by other companies.
We have over 165 years of professional tax experience and over 25 years of direct experience at the local, district and regional offices of the IRS.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 165 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 25 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
- Nationally Recognized Veteran /Published Former IRS Agent
- Nationally Recognized Published EZINE Tax Expert
- As heard on GRACE 90.3 FM Monthly Radio Show-Business Weekly
IRS Tax Help - Tax Levy, Tax Liens, Debt Settlements, Tax Audits – How we Settle and Negotiate your case with the Internal Revenue Service:
1. We immediately send a power of attorney to the IRS letting them know we are now your tax representative. You will never have to speak to the IRS.
2. We will make sure all your tax returns are filed and current. If your tax returns are not up to date, the IRS will refuse to work your case. This is leverage that they use to get you compliant. We can pull tax transcripts, file and prepare your tax returns within days, even if you have lost your tax records.
3. The IRS requires a current financial statement. We will secure a required 433-A (IRS financial statement), verify the income and expenses and work out a settlement agreement. The IRS will require a closing settlement method for each case.
4. We review with our clients how they want to settle their case. We get them an agreement based on their current financial needs.
IRS Tax Settlement Agreements can be in different forms:
a. Hardship Settlements. Cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. Your case will go into a hardship status because you do not have the income coming in to meet your current expenses. The IRS will use the National Standards Program to assess hardship.
b. Payment Agreements. Cases can be closed with agreed upon monthly installment payments to the IRS. We will review the different programs the IRS uses for the lowest possible amount required.
c. IRS Offer in Compromise. There are three types of OICs:
The IRS may accept an Offer in Compromise based on three grounds:
1. Doubt as to Collectibility – Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection.
2. Doubt as to Liability – A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include:
(1) the examiner made a mistake interpreting the law,
(2) the examiner failed to consider the taxpayer’s evidence or
(3) the taxpayer has new evidence.
3. Effective Tax Administration / Exceptional Circumstances – There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.
See our home page for more details about Fresh Start Tax L.L.C. Thank You
Photo: Wikipedia Commons Vietnam Era Weapon Being Used to Clear the Amazon By Stephen Messenger Treehugger Agent Orange is one of the most devastating weapons of modern warfare, a chemical which killed or injured an estimated 400,000 people during the Vietnam War — and now it’s being used against the Amazon rainforest. According to officials, [...]
FreshlyPressed