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Asset Seizure, or levy, is an action the IRS can take as
payment of tax liabilities. The IRS can seize personal and business assets.
Asset seizure is usually the result of ignoring an IRS problem. If IRS
attempts to communicate are ignored, it will attempt to get a
taxpayer's attention by sizing their assets. And it will make good on
its threat to do so. Among the items seized can be real estate,
vehicles, business equipment, personal property, bank accounts,
retirement funds, Social Security and accounts receivable. After the assets
are seized, they are sold at a public auction.
Equity Search can help when a threat of seizure has been received, and
even after assets have been seized. But time is of the essence. An Asset Levy Release can be sought to release your assets, and the process of moving toward an overall financial solution can begin.
Full payment of taxes, penalties, and interest is not the only way to resolve an asset seizure. Equity Search personnel are experts in helping evaluate the options. If you are at the point of Asset Seizure, there is no time left—call immediately.
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Once assets have been seized, it is possible to get them released pending certain negotiations with the IRS via an Asset Levy Release. If property has been seized, time is of the essence. If contacted in time, Equity Search can help obtain an Asset Levy Release.
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If taxes are owed, the IRS can send a Notice of Levy to a taxpayer’s
bank. Upon receiving the money, all money in all accounts associated with a taxpayer’s social security
number is frozen. The money becomes inaccessible. If attempts are made
to cash checks written against the frozen account, those checks will
bounce. The bank holds the money for 21 days, and then it must remit the funds to the IRS. Equity Search can help with IRS Bank
Levies. The 21-day period where your assets are frozen is our opportunity to negotiate with the IRS and find a way to reach an agreement to release the bank levy.
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Bank Levy Release
A Bank Levy Release is an action taken by the IRS that unfreezes a levied bank account and
reopens access to funds. Obtaining a Bank Levy Release is a negotiation process with the IRS. Equity Search can help negotiate with the IRS and obtain the release within the 21-day window. After obtaining the release, we can move forward by discussing options for further negotiation regarding IRS tax liability.
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“Currently Not Collectible” is a status assigned to taxpayer’s debt to the IRS when the taxpayer can’t afford to make any payments for a certain period of time. Currently Not Collectible is assigned when even small monthly payments would cause severe economic hardship. If the IRS agrees that a debt is Currently Not Collectible, it won’t pursue collection for a certain period. Equity Search can help determine whether a taxpayer qualifies for this type of
relief. If so, Equity Search can negotiate the Currently Not
Collectible status with the IRS. This status suspends a taxpayer’s account for a year or two. After that time, the IRS will contact the taxpayer for updated financial statements. During this time, however, interest and penalties continue to accrue on the unpaid taxes, and the tax debt doesn't go away. Despite the drawbacks, it is an essential process for
some to help regain financial footing. Equity Search can help determine whether Currently Not Collectible is the right
approach, and whether it is or isn't, they can help establish a long-term plan to help achieve ultimate financial success.
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A Federal Tax Lien is a public record filed by the IRS proclaiming
that a taxpayer owes taxes. The Tax Lien is filed with the County Clerk in the county from which the taxpayer or the business operates. A Lien can cause
significant financial challenges, for example, difficulty in obtaining
credit. There are a variety of options in getting a lien released. It is important to act on a Federal Tax Lien in order to prevent further action by the IRS. Further action could include
seizure of business and personal property, levies on bank accounts or wages
(taking wages or money in savings and applying it toward the taxes
owed). There are better ways to come to an agreement with the IRS without compromising
livelihood or dignity. Equity Search can help.
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An Offer in Compromise allows taxpayers to get a fresh start by settling all back tax liabilities for an amount less than the full amount owed. If a taxpayer
can't pay their tax debt in full, or has a dispute with the amount the IRS claims he owes, the taxpayer can propose to resolve the matter with an Offer in
Compromise. The ultimate goal is a resolution that is in the IRS and taxpayer's best
interests. Equity Search personnel are experienced experts in negotiating Offers in Compromise. See the
FAQ section for more detailed information on the Offer in Compromise.
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Fail to pay payroll taxes on time, and penalties and interest start to accrue. The IRS is highly aggressive in
their efforts to collect past-due payroll taxes. Penalties assessed on delinquent payroll tax deposits or filings can significantly increase the total liability in just a few months. The penalties can cause additional hardship for a business where cash flow is already a problem.
Professional representation in matters concerning failure to pay payroll taxes is important—the way a business owner answers the IRS’ questions can determine whether or not
the business survives. Equity Search can devise a strategy for repayment of these taxes and negotiate with the IRS to avoid bank levies and asset seizure.
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If the IRS is trying to collect taxes from debt incurred by a person’s spouse or former spouse for Federal or state tax debt, child or spousal support debt or other debt, that person may qualify for relief as an “innocent spouse” or “injured spouse.” Filing a joint return means that both parties have agreed to be jointly and individually liable for all taxes, penalties and interest due on that joint return. Even if a divorce decree or other agreement states that a former spouse will be responsible for amounts due on previously filed joint returns—both parties are liable. Equity Search can help determine whether you qualify for innocent or injured spouse stats, and can help negotiate relief.
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An installment agreement is a negotiated payment plan to pay off IRS tax debt over a specified period. In general, after initiating an installment agreement, the IRS will review a taxpayer’s financial situation in approximately two years and determine whether the monthly payments can be increased. In an installment agreement, penalties and interest continue to accrue, even while the taxpayer makes monthly payments. This can mean that, despite a large monthly payment to the IRS, the outstanding balance may continue to increase due additional penalties and interest. Equity Search can determine whether an Installment Agreement is the best option, explain the intricacies of these agreements and negotiate them with the IRS to maximize the chance that an agreement favorable to the taxpayer is accepted. Equity Search can also help determine the best payment schedule so that the outstanding balance doesn’t continue to grow due to penalties and interest in such a way that it is impossible to catch
up.
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When appropriate, but typically as a last resort (as problems can almost always be solved by other means) an Application for Taxpayer Assistance Order can be filed with the Taxpayer Advocate Service. The The Taxpayer Assistance Order (TAO) is initiated by filing IRS
Form 911. It applies to cases where a taxpayer is suffering or is about to suffer significant hardship because of the manner in which Internal Revenue Laws are administered. Examples of hardship might include the inability to buy food, pay household bills, make
payroll; or owning property that is under imminent seizure or sale by the IRS. Through a TAO, IRS may stop levies and other actions. In addition to other requirements, before submitting a TAO it must be demonstrated that attempts were made to resolve this matter with the Revenue Officer in charge of a case. As soon as Form 911 is filed, all collection efforts must cease. A Problem Resolution caseworker tries to intervene on behalf of the taxpayer and resolve the problem—usually an agreement whereby the taxpayer makes an effort to pay or makes a compromise on the tax liability.
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The Taxpayer Advocate Service is an IRS program that provides an independent system to assure that tax problems, which have not been resolved through normal channels, are promptly and fairly handled. Each state and service center has at least one local Taxpayer Advocate, who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. The Taxpayer Advocate independently represents taxpayer interests and concerns within the IRS. This is accomplished in two ways:
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Ensuring that taxpayer problems, which have not been resolved through normal channels, are promptly and fairly handled, and
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Identifying issues that increase burden or create problems for taxpayers: Bringing those issues to the attention of IRS management and making legislative proposals where necessary.
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The money a business withholds from an employee's paycheck to pay federal income tax and the employees' share of FICA and Medicare is called a Trust Fund. These withholdings are held
'in trust' until the business pays it to the IRS. The Trust Fund Recovery Penalty, commonly known as the 100% penalty, is assessed for Trust Funds not paid to the IRS. The IRS may assess the penalty against anyone responsible for collecting or paying these funds who willfully fails to collect or pay them. Determining who the “responsible person” is and whether or not willfulness exists depends upon the facts and circumstances in each case. Equity Search can help determine rights regarding a Trust Fund Recovery Penalty, explain which options are available, negotiate a solution with the IRS and develop a strategy to ensure future success.
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A Wage Levy, or garnishment, is the action the IRS may take in order to get the attention of a taxpayer who
is ignoring IRS attempts at collecting past due taxes. The Wage Levy may be activated against wages, salary or other income. The IRS sends a Notice of Levy to the taxpayer’s employer, mandating that they withhold a specified amount from the taxpayer’s paycheck. The entire paycheck won’t be garnished, but the person may be left with only a small amount to live on. That amount may not be enough for you to pay the bills, mortgage or other living expenses. A Wage Levy continues until the IRS releases it or the total tax liability has been paid. Equity Search can assist in stopping Wage Levies by negotiating a Wage Levy Release.
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If your wages have been levied, it's possible to get the wage levy released pending certain negotiations. Equity Search can help negotiate an behalf of levied taxpayers to obtain a Wage Levy Release.
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