Saturday, February 9, 2008

Collection Process; Part 2

Did you know that the last notice sent before a levy is placed upon your account an action is an L1058? The IRS is serious about an action of this severity. It is very difficult to get levies and liens lifted from a delinquent taxpayers account. Levies are never released until tax is paid in full. Taxpayer's are under the impression that it is easy to get this type of release, but it's not. This is not an expediant process once the IRS places this type of action. Henceforth, whatever the balance is at the time they implement the bank levy, this will be the amount deducted from your account. Fortunately, large banks don't allow a complete depletion of your account at the time of the levy. Say for instanc, a taxpayer owes $10000.00 and one day he deposits this same amount of money, large banks will not deduct this exact amount. They are aware of how bank levies work and know thatmore than likely, your account will be hit again in 22 days or so. However, small banks (mom and pop banks,if you will) are not as likely to be so keenly aware of this. They will just comoply with the IRS and their complete instruction.
In essence a taxpayer will wound up making "minimum wage" at the time of the wage garnishment targets your place of business.

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