Things To Do If the IRS Threatens to Levy Your Bank Account

August 9, 2011 by
Filed under: IRS 

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If you’ve received an IRS notice saying that they intend to levy your bank accounts if you don’t pay up in 30 days, then it’s time to pay attention. Before the IRS actually issues a levy notice, they’ve usually made a few attempts at contacting you and trying to get a payment. If you’ve received an IRS levy notice, it means that the IRS hasn’t heard from you—they think you’ve been blowing them off (which in many cases is true). If you ignore the levy notice, they’ll just take your money and the law is on their side so you need to act now.

First, the responsible thing is to call them, or hire someone to deal with them for you. (I personally think that if you’ve reached this point, it’s best to hire someone—but remember, I do this for a living, so note that I’m biased.)

There are things you can do to prevent the IRS from going through with the levy. Let’s assume that you really do owe the money:

1. You can set up a payment arrangement–you pay off the IRS on a monthly bill schedule

2.Your situation might qualify you for an offer in compromise (the pennies on the dollar thing you see in TV commercials), or

3. Maybe you’re going through hard times and need to be put into the currently uncollectable status—you still owe, but the IRS quits hounding you until you get a job or your situation changes.

But maybe you don’t really owe the money. That’s the big kicker for me. Usually, if you’re getting IRS levy notices, you do owe them money—or at least part of it, but I have seen several cases where my clients don’t owe the IRS anything! A couple of times I have even gotten them refunds instead. If you didn’t do your taxes, and the IRS did them for you, don’t assume that the IRS did them right. When the IRS does your taxes for you, they automatically put you in the highest tax bracket they can justify and you get no deductions or tax credits that you might have qualified for. (Here’s a hint: if you’ve got kids, the IRS probably did your taxes wrong.) Even if you find that you don’t owe the IRS money—you still have to contact them, let them know the situation, and then you’re going to have to provide proof. Usually your proof is your corrected tax return.

Dealing with the IRS is the best way to get yourself out of levy trouble. But here are a few things that you also might want to consider doing while the threat of a levy is still hanging over your head:

1. Make sure your name is taken off of your kids’ and/or parents’ bank accounts. If you’re on someone else’s bank account, the IRS can and will levy that account too.

2. Don’t keep large amounts in your bank accounts. If you’ve got lots of cash, then maybe you can just pay your debt. But usually, this isn’t an option for most people. If your paycheck is going direct deposit into your bank account, get the money out immediately. You can put your cash onto a prepaid Visa debit card. Once the levy is in place, the IRS can only take the funds that are in your account at the time of the levy, if you get another deposit, that money is accessible. Transfer money in only as you need to make payments out of the account.

IRS levies are serious business. Don’t make the mistake of ignoring them.


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163 Comments on Things To Do If the IRS Threatens to Levy Your Bank Account

  1. Steve on Mon, 12th Mar 2012 5:34 pm
  2. I just received my notice saying I have 30 days to pay some money to the IRS or they will “long list of threats” I am a 100% disabled army vet and my only income is from the VA, which is non taxable disability money. It is just enough for me to survive and believe me, it’s not much. I have been told that the VA disability is the only one the IRS can not levy against…my question is this, if my VA check is direct deposit into a check cashing place system and loaded onto a debit card “this is not a bank” is this something the IRS can take? Would I be better off switching back to getting a paper check monthly instead of the direct deposit?

    Thank you in advance

  3. Admin Roberg on Tue, 13th Mar 2012 2:14 am
  4. Hey Steve,
    Thank you for your service to our country. Now, back to business–First thing is to call the IRS. Tell them, “Hey, I’m a disabled Vet and the only money I get is from my VA disability. Explain the situation from them. Ask if you can be put on their “currently uncollectable” status. It’s quite possible that you’ll qualify. That’s the best thing to do, then you don’t have anything to worry about.
    If you can’t get on the currently uncollectable status–and they still want to levy your accounts, I’d talk to the check cashing place to find out if the can accept a levy. Basically, if a levy is placed–it’s on the money that’s in the bank account on the day the levy is asked for–so I’m thinking you shouldn’t have a problem. But I don’t KNOW for sure, so you’re better off talking to the check cashing place. They’ll know their rules much better than I could tell you.
    Do call the IRS first though. I think you can get the situation resolved and that would be the best thing for you.

  5. Andrea on Mon, 26th Mar 2012 4:13 am
  6. I receieved a notice of intent to levy for 2006 taxes. I was married at the time, still officially married but I was told by my husband that he he did our taxes for 2006. He did not and the IRS filed for me, but they filed it under single. I also have a child. I asked them to give me until April 15th to file, they said no because they attempted payment agreements in the past. The only thing I can think to do is file for bankruptcy under chapter 7. I have any appointment with a bankruptcy attorney tomorrow but since I didnt actually file the taxes for 2006, then I dont beleieve that debt is discharchable. I in know way was willfully evading the IRS. I just didnt understand what was going on. The IRS call center offer no advice, and I could not afford the payment agreement. I dont know what else to do, but Im very scared. should I stop my direct deposit right now?

  7. Admin Roberg on Tue, 27th Mar 2012 12:01 am
  8. Hi Andrea,
    yes stop the direct deposit and don’t leave any cash lying around in your account. Now, what you want to do is to pay some of the tax–even if you don’t have a payment agreement in place–pay some of the tax.

    Here’s why–you cannot amend your returns any more–it’s too late. But, if you file an amended return after the due date, you may be able to reduce the amount owed if you’d paid at least that much. So–I know that you should not have to owe that amount, but if you don’t pay anything–you lose the case. So start paying.

    In the meantime–they’ve issued a levy notice, once the levy goes into effect-the bank must hold any money that’s in your account to pay the tax. So—it’s best if you don’t have much money in there.

    Now–if you can’t afford the payment agreement there are a few options–you can negotiate a lower payment rate. Also, they’ve changed the streamline payment agreement from 60 months to 72 months–so depending upon when you spoke to them that may make the numbers more reasonable.

    If they won’t work with you, then it’s time to pull out the big guns and get an Enrolled Agent on the job. Yes, it costs money, but sometimes we can do things you can’t.

    But in the mean time–stop the direct deposit. The IRS knows when you get paid and they’ll probably issue the levy for pay day.

  9. Steve on Fri, 30th Mar 2012 9:55 am
  10. Thank you for your prompt reply and the information was right on the money! One final question, am I correct in my thinking that the IRS CAN NOT Levy VA disability payments?

    Thank you again,

    Steve M.

  11. Admin Roberg on Sun, 1st Apr 2012 12:18 am
  12. Hey Steve,
    The way the IRS phrases it is that they cannot levy “service connected disability payments” so I would assume that includes VA disability. But–from experience, I had a client who’s military retirement was levied. He used to receive VA disability, but then when he was old enough it was converted to retirment payments–and the retirement did get levied. (I guess the rule is don’t get old?)

  13. morgan on Thu, 5th Jul 2012 10:40 pm
  14. just got off the phone w/IRS agent, I owe $13K back taxes. Im disabled vet and unempolyed after 30 min of explaining my hardship medically as well as my age IRS have given me “uncollectible status at this time.” should I stiil worry about my direct deposit from VA or should I get a check from VA instead of Direct Deposit? I worry please help

  15. Admin Roberg on Fri, 6th Jul 2012 3:48 pm
  16. Hi Morgan,
    Thank you for your service to our country. You should not worry about anything. Uncollectible status means that the IRS knows you don’t make enough money to pay the bill right now. (Maybe never.)

    About once a year, you’ll get a letter from them. Make sure you open it and just call in to follow up. Usually, that means proving you’re still unable to pay.

    Keep your direct deposit. It’s easier on you and changing to a check won’t change anything.

    They will place a lien on your assets–like your house, but that’s the price you pay for not paying your taxes. Won’t hit you until you sell the house.

    One last thing–do you really owe $13,000? So many times the answer is NO! You mention your age–so if you were retired and receiving Social Security during one of those years–then I guarantee the $13,000 figure is too high. Also, is there some self employment or stock transactions on there? Once again, you were over billed.

    Take advantage of this time where you don’t have to pay to make sure what the debt is. The IRS figures your taxes at the highest possible rate with no deductions. This is going to sound dumb, but the IRS is really bad at preparing tax returns. If they did yours–it’s probably wrong. A human being did not come up with those numbers–a computer did. Do yourself a favor and have it double checked. You’ll be glad you did.

  17. morgan on Thu, 12th Jul 2012 10:04 am
  18. Thank you for responding for my Q’s. It is now waiting game since, IRS have stated that they will be sending me a letter, I am on the look out just for that!
    Yes, IRS did file the taxes for me I do not know how they came out w/ those #’s
    Anyrate, just wanted to tell you thank you for taking a time out to respond. May God be w/us when it comes to face w/IRS

  19. Admin Roberg on Thu, 12th Jul 2012 4:08 pm
  20. Hi Morgan,
    The IRS got those numbers from employers and other places that are required to turn in the information–like pension providers, financial firms, etc. You can ask the IRS to send you the information they used to do your return. You have a legal right to it.
    Good luck with your showdown!

  21. mark on Fri, 13th Jul 2012 6:31 am
  22. I owe my bank money through credit cards which i am paying back through a 3rd party but i am hopefully going to receive some cash soon and looking to see if bank can claim this cash even though i have arrangment in place??

  23. Admin Roberg on Fri, 13th Jul 2012 9:20 am
  24. Hi Mark,
    I’l be honest with you, I don’t know anything about what the bank can do about debt. The IRS would not be able to take that money if you had a payment agreement and were current on it. But the bank would have different rules. Sorry.

  25. Carrie on Sat, 14th Jul 2012 9:39 am
  26. I have a question if I move my money to a pre-paid visa card can anyone levy this money or go after it ex: IRS or Judgement from court?? I have been out of work and off unemployment for a while and had a levy once with my bank that I was able to get released but it scared me so now I am paranoid for this to happen again?? Thanks

  27. Admin Roberg on Mon, 16th Jul 2012 10:12 pm
  28. Hi Carrie,
    As of this moment, the IRS is unable to levy a pre-paid Visa card. But the best way to avoid a levy is to get into compliance–file your tax returns, and set up a payment arrangement or get into an offer in compromise or currently uncollectible status.

  29. Christiana on Sat, 22nd Sep 2012 8:00 am
  30. My Ex – husband owed a lot of money to the IRS and he deceided to just leave the Country becaue it’s a huge amount. The IRS after 3 years coming after me and I did not know anything about this because tjat he is NOT PAYING. The divorce paper said he is responsible to pay all his Tax. I just got a new Job as an independent Contractor as an 1099, where I get a Paycheck each week. My question is , when I Cash the Check in a Cash Checking Place and put it on a pre paid Visa, can the IRS still levy my Check directly from the Company when I am a 1099 Employee and they will not notify IRS by end of the Year for Tax purposes? OR can the IRS levy when I try to cash my check? I want to file Bankruptcy in couple month once I have that money saved and also looking for a good attorney . Thanks alot

  31. Admin Roberg on Sat, 22nd Sep 2012 10:52 am
  32. @Christiana,
    Wow. Some ex spouses just keep on giving don’t they?
    To answer your question–you should be fine cashing your check and putting your money on a prepay VISA card. There’s really no way for them to levy your check at a check cashing place. So that’s a short term solution–be we need to solve your much bigger problem–the tax debt.
    First thing to consider–and this could be a long shot but at least try–can you qualify for innocent spouse relief? That’s where you are considered to be completely innocent of your husband’s tax debt. It’s really difficult to win on that grounds, (there’s usually physical abuse involved) but because your divorce decree says he is responsible for all of the debt–it’s worth looking at.
    To be honest–I’m familiar with another case that the divorce decree divided up the tax debt–the ex didn’t pay and the the wife is getting hit with it. Innocent spouse didn’t work there, but we’re now working on an offer in compromise–which might be another option for you.
    It’s hard to say what the best track for you to take is, but it sounds like you’re going to get an attorney and that should help. Everybody’s case is a little different and especially in a case like yours, little issues can make a big difference. Make sure you get good tax advice in addition to talking with an attorney. Most bankruptcies don’t cover tax debt so make sure you know exactly what’s going to be covered and what won’t.
    Good luck.

  33. Christiana on Sat, 22nd Sep 2012 12:05 pm
  34. Thank you so much. I definitly to look for an Attorney. After the little research I’ve done is I can I either do the spousal relief form when this is not working I am forced tp add it to my Bankruptcy Chapter 7..Than this way I do not have to pay back and I talked to an Bankcruptcy attorney and I qualify for chapter 7. I never thought in my life I have to file Bankcruptcy but in this extreme case I am forcen to do that because. But again thank you so much for your fast reply back.

  35. Trina on Tue, 25th Sep 2012 7:51 pm
  36. The State levied my checking. The legal department at the bank stated that they can only hold the funds that were in the account, that they can’t take the direct deposit that is coming through in a few days.
    Is this true? I’m worried that my employer won’t be able to stop my direct deposit. I’ll be working on get a paper check and transfereing the funds on a prepaid Visa card.

  37. Admin Roberg on Fri, 28th Sep 2012 6:55 pm
  38. Hi Trina,
    Your bank person is right, they can only hold the fnds that were in the account when the IRS levied it. They cannot take the direct deposit that is coming. You’re good.

  39. Gordon on Thu, 4th Oct 2012 9:12 pm
  40. I am not a US citizen or permanent resident. I was in the US on a H1B but left in 2006. The IRS last year took some money from my account but I’m sure I do not owe them money. What can I do?

  41. Admin Roberg on Fri, 5th Oct 2012 8:26 pm
  42. Hi Gordon,
    What I recommend is getting an Enrolled Agent in the United States who can represent you. There’s going to be a lot of questions that you couldn’t possibly answer online.
    If you want, you can contact me directly. My email is

  43. Rosa on Sat, 6th Oct 2012 2:07 pm
  44. I just got a mail from my 3 year old bank saying that NY state put a levy on his account for me. My questions are: (1) I did not recieve any letter from them saying they will do a levy from my son account. (2) Can they do that even if he had $13.00 in his account. (3) will this effect my son credit?

  45. Admin Roberg on Sat, 6th Oct 2012 9:03 pm
  46. Oh Rosa,
    I’m so sorry. I’d say I can’t believe it, because I know you’re not making this up. The truth is, yes they can do that. He’s only three so your name has got to be on the account. They must have done a bank search and found your name on there and bam–they got you. Whoopie–they’re going to get a whole $13 out of the deal. But it’s frustrating and embarassing and my goodness he’s only 3!

    I don’t think this will hurt his credit report, the levy isn’t really on him, it’s on you. They just went after his account because you’re on there. I would get one of those free credit reports in his name in a few months just to check. He’s three–it should have nothing on it, but better safe than sorry. If you find something there, you can get it cleared. Clearly, he’s done nothing wrong.

    You didn’t get a letter saying they’d go after your son’s account but I’m guessing that they sent you a letter saying they would go after your account. That will constitute the fair warning. I’m so sorry. It just seems ridiculous that they’d take $13 from a three year old. Just remember, it’s not like there is a human being looking over this stuff and making responsible judgement calls. It’s all computer generated and the computer found your name on his bank account and the “levy” program just kicked into action.

    Be glad that he’s only three, he won’t know his bank account was levied, and be glad that it’s only $13 and no more than that.

    Now, if it’s not too late, you might be able to stop the levy if you get with the IRS and set up a payment arrangement or get yourself into a “currently uncollectible” status. If you’re working and can afford to pay something–payment agreement. If you’re unemployed with no source of income–go for currently uncollectible. You may need to prove your financial circmstance, but you’ll be acting responsibly and getting the IRS problem handled. If you don’t, they’ll continue to go after you and, sadly, your three year old innocent son. Good luck.

  47. Rosa on Thu, 11th Oct 2012 8:51 pm
  48. Thank Ms. Roberg for the advice however I gather all the letters from NY state Taxtation and nothing said anything about putting a levy on any accounts. Don’t they have to send a court document showing that they will be doing this? Now my son has a negative balance of $125.00 from the bank, Oh my goodness. Here I am trying to train my son to save and not make the mistakes I made and they do this. Can my bankruptcy lawyer stop this for me? Also I just opened an account would they go after that too? Looking forward to your advice.


  49. Admin Roberg on Sun, 14th Oct 2012 7:22 pm
  50. Hi Rosa,
    I would check with a New York EA or attorney. Here in Missouri, they always send a notice first, but different states, different rules. I’d be surprised though if New York didn’t send anything. Remember, if they send a notice to a prior address and you haven’t notified the state–it still counts as having sent notice. FYI.

    Now since your son is only 3, I’m thinking he’ll never remember this and probably is totally oblivious to the fact that his account was levied. I wouldn’t lose sleep over that.

    Since they already took the money, I doubt that your bankruptcy lawyer can do anything. But since you’ve got an attorney, he’s probably your best source about New York laws. Good luck.

  51. richard reilly on Sun, 9th Dec 2012 3:18 pm
  52. I received a notice cp504 from the IRS stating that they would levy my State tax refund. I ignored it since I have been sick and in the hospital. I 62 and have been on Social Security Disability since then. I understand that arrangments can be made however I don’t have the money to pay even in installments as I’m paying the State in installments already for taxes owed. I am disabled as I have only one lung that was taken due to cancer and have been in the hospital this year 6 times. I am about to pick up another certified letter and I believe it’s going to levy my SSD income @15%. What should I do other than call them?

  53. Admin Roberg on Mon, 10th Dec 2012 8:52 am
  54. Hi Richard,
    Call them! Seriously, I know you don’t want to but ignoring them is worse. Explain your situation. If you can’t talk very well, have someone make the call for you, but be in the room so that you can grant permission.

    Ask to be placed on “currently uncollectible.” It sounds like your situation would qualify you (but they’ll need to prove your income and expense situation.” It will buy you some time. You’ll eventually need to settle the debt–either paying or making an offer in compromise–if you’ll qualify–but talk to them.

    If you don’t contact the IRS, then it looks like you’re avoiding them and they’ll just levy and take what they want. Sorry. I know it’s not the answer you want, but it’s the right thing to do.

  55. casimir todd on Mon, 10th Dec 2012 8:36 pm
  56. I have a 401K hardship check in excess of 10k needed to replace my car that I had totalled and a few months out of work, but I am afraid to deposit it because I owe taxes… have been getting money levied from my employer checks and was wondering if I were to deposit the check would the IRS take the money I owe them!!!

  57. Admin Roberg on Mon, 10th Dec 2012 8:50 pm
  58. Hi Casmir,
    Basically, the IRS can issue a levy on your bank account after giving you notice. Since you’re already being levied through your paychecks, it’s quite possible that you’ve passed the “notice period” and they can come in anytime. That’s a bit of a problem for you.
    I think your best bet is to contact the IRS directly and find out what their intentions are. You’ve got to cash that check to get your car. If you can go through your bank–that would be the least expensive. If you need to go to one of those check cashing places, you’ll have to pay fees. That said–maybe that’s your safest bet. I don’t like recommending that, but it would keep your check out of the bank.
    Still–talking to the IRS and working out some type of payment plan makes a lot of sense. (Or, given your situation, getting put on the currently uncollectable status would be a good idea.)

  59. Dave on Wed, 12th Dec 2012 12:44 pm
  60. If I owe back taxes and if I open a new checking account will they be alerted right away by my social security # and the account account be frozen, or does it take time for them to find it?

  61. j carroll on Thu, 13th Dec 2012 8:45 pm
  62. i looked at my bank account today. there was a deduction for a large sum. the bank said it was irs. i never received a notice from them saying they were going to take money out. i live in sc. they were sending mail to an old address i called but they wont release my money.

  63. Admin Roberg on Sat, 15th Dec 2012 4:21 pm
  64. Hi Dave,
    It will take a little time for the IRS to find your bank account, but don’t count on it. Your best course of action is to contact the IRS get get your situation straightened out. If you work out a plan with them, they won’t levy. If you can’t pay–be up front with them and get on a currently uncollectable status. If you can pay something–get started on an installment plan.

  65. Admin Roberg on Sat, 15th Dec 2012 4:45 pm
  66. @ j carroll-
    Once the IRS has your money, they don’t give it back. You say that you never received the notice from them–the thing is, under the law, you don’t have to receive it–they just have to send it. If they sent it to the wrong address–the fault lies with you for not information the federal government that you’ve moved. Sorry, I know that sounds harsh, but that’s the way the rules work. I didn’t make them–just repeating them.
    So, here’s the issue–they’ve got your money and you won’t get it back. Are you and the IRS squared now? Or do you owe more and will this happen again?
    They’ve certainly got your attention now. You need to get this thing settled so you don’t have it happen again.

  67. j carroll on Sun, 16th Dec 2012 7:45 am
  68. Well unfortunately I trusted someone who said they were taking care of filing my taxes and I do owe them some money, however, i have requested a call back from them and it hs too soon to have them call i guses…maybe next week. My question now is since they drained my account of about 4000 will they take money out of it every time i put it in? Or will they consider this a payment and possibly not take more money out right away until i can try and get a payment plan worked out?

  69. Admin Roberg on Sun, 16th Dec 2012 3:25 pm
  70. Hey j carroll,
    Technically, they already tood the $4000 they’ll have to levy again to do it again. The catch is, once they’ve got their levy juices going–they don’t have to issue you a separate notice. They can pretty much strike when they feel like it. So–if you have money deposited into the bank, you should probably move it as quickly as possible to prevent another account draining activity. Sorry.

  71. j carroll on Mon, 17th Dec 2012 2:00 pm
  72. about how quickly will they withdraw the money again???? I don’t wanna write out checks and then have it withdrawn before the checks clear….just an approximate time limit.

  73. Admin Roberg on Mon, 17th Dec 2012 8:33 pm
  74. Hi jJ Carroll,
    The IRS says that they usually wait a couple of months before they levy your account again. You won’t get a notice ahead of time though. Now, if you’re talking to the IRS, and telling them that you’re working on it, they won’t levy–or at least they’ll give you a date and say, “we need this information or something by such and such a date, if you don’t do it, then we’ll levy.” So once again, I highly recommend talking to them.

  75. j carroll on Tue, 18th Dec 2012 2:05 pm
  76. talked to them and they gave 30 days. i am taking care of a terminal relative. and they can’t get the info to me for 14 days. is there anyway once i get that i can have it delayed again and if so what can i do to get this delayed. i just have a lot on my plate. you are so helpful

  77. Admin Roberg on Wed, 19th Dec 2012 9:21 pm
  78. Thanks j carroll,
    I find that the IRS is usually rather generous about extending the 30 days when you have a problem like yours. Make sure you call them on around the 29th day so they know you’re on top of things. Good luck with your tax situation. I’m sorry about your relative.

  79. Kristen on Thu, 27th Dec 2012 12:14 am
  80. Hi,

    Last week the IRS placed a levy on my checking account and got about $1100.00, which in turn resulted in a couple overdrafts. The next day I went to the bank so I could cash a check and then deposit cash to at least cover overdrafts, but my bank said that they couldn’t even cash a check because IRS now had “first dibs” on all funds and the bank was second in line. So basically my bank account is unusable. I thought levies were a one time pull not a takeover of all future account funds.

    Here is the background. I was self-employed from 2006 to 2008 as an apprentice then newly licensed real estate appraiser. Never having been self-employed before I was a bit overwhelmed when working on my 2006 taxes and filed and extension. By time extension deadline was nearing the housing/real estate bubble was bursting, and I never filed. 2007 and 2008 I didn’t even make enough to cover expenses, so those years never got filed either. I used credit cards to cover the gap. Since the end of 2008 I have been unemployed. Needless to say, this all compounded my long-standing battle with depression. Fortunately for me, my parents have been able to extend to me loans to cover my cost of living, which I have every intention of paying back in full. After all their help, they were very dissappointed with me to hear the IRS had levied my account.

    To get my life back on track, I knew I had to resolve these issues. I started by getting a CPA to compile and file the back tax returns and initiated a bankruptcy for about 15k on the credit cards I used to cover my income/expense gap during those years. It turns out that the IRS had no 1099’s or records of any kind that I earned income from those years, and it was only my honesty in filing my returns that put me on their radar. If I had never done them they would have never known. (But, I would have). The penalties, and fees were more than the taxes themselves. I started making small payments but of course they wanted them paid in full. I should have called but I didn’t.

    So, here are my questions. Can they keep continous hold on on my bank account? Can they levy funds from 401k and IRA accounts? Will they still negotiate with me even though they have already levied and apparently “commandeered” my bank account? I just this month started working, part-time, but it looks like more hours will be available after the first of the year. My earnings will be sent to a prepaid debit card issued by my employer, can they levy that card? Should I be wary loading other cash on to that card? Or, would they just levy the wages from directly from my employer before they are dispersed to me? Should I give my new employer (a contract security company, had to pass, standard & criminal background checks, fingerprint verification, and a drug test prior to hire) a “heads up” about this situation, not knowing if or when the IRS will contact them?

    I’d really appreciate any advice, suggestions and insights you can give regarding this pickle I have gotten into and now have to get out of. I hope to hear back from you soon. Thank you so much.


  81. Admin Roberg on Tue, 1st Jan 2013 10:15 pm
  82. Hi Kristen,
    First, once the IRS levies your bank account–and that money is taken, it’s taken and your bank account should be normal. I think someone at your bank didn’t know what was going on. I’ve seen that happen before.
    Here’s how it works. The IRS issues the levy–let’s say you’ve got $1100 in the bank at the time–okay so they get the $1100, but they don’t actually take it for 21 days. So after the levy is issued, you deposit $2000, that $2000 that you deposit should be for you to use. The IRS can’t touch it–they’ve got their hooks into the $1100, but they can’t have anything else.
    So–somebody at your bank messed up. The IRS cannot, I repeat, they CANNOT keep a continuous hold on your bank account. That said, they might try to levy again, but they can’t just hold your account in limbo forever.

    The IRS can levy 401(k) accounts and IRAs, but they don’t like to. They get more money out of you if you cash them in to pay tax debt than if they levy them. (The IRS has to forego the 10% penalty of they levy those accounts.) So it’s possible, but highly unlikely that they’d go after those funds.

    The IRS cannot levy a prepaid debit card. What they can do is contact your employer and levy your wages before the money is loaded onto the card.

    I think your best bet is to contact the IRS and work something out with them. If you set up some type of agreement, then they won’t levy your bank account or contact your employer. I don’t think you want them contacting your employer, not in your line of work, so call the IRS. That’s your best move. Good luck.

  83. yvette mason on Tue, 22nd Jan 2013 9:03 pm
  84. I owe the IRS. I know that what I owe I will not be able to pay in full. I submitted an offer in compromise and received a response that stated while investigating, a notice of federal lien could be placed. I have kept good contact with IRS responding to all compromise. I am a single parent with health issues and horrible credit meaning I do not have the means to repay. I barely make enough to support my daughter. What can I expect while waiting to hear if my offer is accepted? And what happens if accepted or not accepted? I received the bill and have been responding in timely manner. I didnt pursue installment option yet as I wanted to try the offer in compromise. I guess I just want to know what I can I expect from IRS? Will my paycheck be levied? Is it a one time thing or continuous? Thanks for your advice. I am reading this and the information seems to be very helpful.

  85. Jan Roberg on Wed, 23rd Jan 2013 8:22 pm
  86. Hi Yvette,
    First off, while the IRS is pondering your offer in compromise–they aren’t going to levy your bank account or garnish your paycheck. The will probably place a lien on your property–that means that if you own your house and try to sell it–you can’t without the IRS getting their money from the sale.
    If you don’t own a home, then the lien would show up in your credit report and could affect you getting a loan. But a lien does not mean they’ll go into your bank account or paycheck.

    So–if the IRS accepts the offer–great. If not, then you’re back to trying to negotiate a payment arrangement.

    If you they do accept the offer, it’s really important to not fall behind on your taxes again. Let’s say the IRS says yes to the offer and then in 2013 you wind up owing a ton of money and you don’t pay by April 15th–BAM! Not only do you owe the 2013 tax money–but your offer is rescinded and you owe all that money again. So–never ever get tripped up with owing federal income taxes again. That’s really important. I’m not saying that to scare you–just to make sure you know about that.

    Good luck with your offer. I hope it goes through.

  87. yvette mason on Thu, 24th Jan 2013 5:38 am
  88. Thanks so much. I plan to stay on top of this 100%. I don’t own a home but hope when things shake out, I will have everything in place. Thanks again for your time.

  89. Vanessa on Tue, 29th Jan 2013 2:21 pm
  90. Can the IRS place a levy on a pre-paid visa card issued by Chase bank? I have a regular banking account at Chase also but I only keep a few hundred on there just to pay bills. If I get direct deposit to my pre-paid Visa for my tax return is the IRS able to touch that money? I owe both the IRS from a repossessed car that was sold & student loans and every year for the past 3 years both the State and IRS fight over that money. I have plans in place to repay the IRS what I owe them, which is only $300 but I cant do that until I get my refund.

  91. Jan Roberg on Tue, 29th Jan 2013 9:21 pm
  92. Hi Vanessa,
    The IRS can’t levy a pre-paid Visa Card BUT–and this is important–they can keep your refund from going to the card in the first place. And I think that’s your situation. The IRS will keep the $300 (or whatever you owe them) and the rest of your refund will be delayed. Sorry.

  93. Arhtur on Sat, 9th Feb 2013 8:02 pm
  94. I setup a monthly payment plan with the IRS before we filed our 2012 taxes and it was accepted. But only to come find out that they deducted from our refund the full amount due. What can I do to rectify that with the IRS or will they even consider putting the balance back towards my refund so we can continue with the payment plan we set up ?

  95. Jan Roberg on Sun, 10th Feb 2013 9:56 pm
  96. Hi Arthur,
    Your taxes are all paid up. Be glad its done. You’ll be saving yourself money in the long run.

  97. Jan Roberg on Sun, 10th Feb 2013 10:04 pm
  98. Hi Fernando,
    You might be able to claim your parents. Here is a link to the IRS website questinaire about claiming dependents.

    Wow, that’s a pretty long web address. Anyway, you will need to apply for ITIN’s for your parents, and there are some other issues that you’ll need to be able to prove, but unlike the people with families in India–people may be able to claim family members in Mexico.

    Do go through the questionaire to make sure your parents can be claimed.

  99. Dell Dumas on Tue, 12th Feb 2013 9:36 am
  100. Good Morning. If only part of my State tax refund was placed on hold by the IRS, does that mean that I will receive the remainder of the state refund? Also does this now mean my IRS tax debt is now paid in full? My thinking is that if I owed more than what was placed on hold, then they would have taken the entire refund. Am I correct? Thank you for your time.

  101. Jan Roberg on Thu, 14th Feb 2013 9:10 pm
  102. Hey Dell,
    I’m not sure–you’re talking about your state refund. Is the IRS confiscating your state refund? Is the IRS levying that? If they are and they only took half, then it sounds like you’ll get the rest. I’m not 100% positive, but that’s the way it sounds to me.

  103. laurie on Wed, 20th Feb 2013 10:33 am
  104. Hi, my mom has recently had all of her bank accounts frozen by the IRS. She can’t pay her bills.

    She has several checks for large amounts of money. Is it legal for her to sign these over to me, so that I can deposit them in my account and give her cash as needed? Are there any criminal or civil federal implications on me if I do this? I doubt state enters into this at all, but I live in Maryland.


  105. Jenny on Tue, 26th Feb 2013 5:46 pm
  106. Ok, so my bank account was levied by the State and the bank is holding that amount for 21 days. Then the state will get their money but I got my federal refund and they subtracted that same amount I owed the state and they will give that to them in about 3 weeks. So to me it seems that the State will get their money twice. Once from my bank and also from my federal refund. Is that possible and if that does happen will the state or irs refund me one of those amounts? So confused!

  107. Diane on Wed, 27th Feb 2013 1:31 am
  108. I had an installment agreement to pay 50.00 per month as I’m on SSI and do not receive a lot of money. Something happened to where my payment for January was not accepted yet I did not know until I received a notice “intent to terminate installment agreement” on 2/4/13 unless I paid in full by 2/19/13. I have had an agreement for 2 years and this was the first time my payment was returned, will my account be levied? I have tried to contact them and the line is always busy and I did make a 50.00 payment recently. What could I expect now?

  109. sherri on Fri, 1st Mar 2013 6:26 pm
  110. I did an offer and comp they accepted it for 30 k from 69k I couldnt come up with the 10k downpayment and then make 1400.00 payments until it was pd in 24 mths so they cancelled my oic. I received a levie notice I dont have a home in my name or bank acct in my name or car in my name or job at this time because i was laid off. I am up to date with all my filing yrs even this yr 2011 I was told in 10 yr 30 days it all will be gone and zero balance but will go up to 250k in taxes owed. I know its ruined my credit but it was ruined anyway from divorce. I feel I have nothing to loose if I just wait out 8 more yrs. What do you think should I try to make payments or file Bankruptcy and make sure it would be in it or, just wait it out.. I dont have anything to take but my boys have 2 homes in a trust that I live in and rent out with an aunt as the trustee. Advice will be appreciated. Thanks Sherri

  111. Chris on Sat, 2nd Mar 2013 11:11 am
  112. Hi Jan-

    I had an issue with my state taxes in 2000 and was contacted in 2006 about the situation, with the state telling me that I owed them almost $10,000. In 2000 I was a student and had part time jobs on and off, but have no idea how I’d come to owe the state that much money. There was a year or two where I remember not filing back then (I was young and dumb). After they’d contacted me, they wouldn’t give me an explanation to why I owed that much money. I talked to several representatives, pleading my case and finally they stopped calling.

    The other day I’d received a NSF alert on my mobile phone for one of my bank accounts. A levy was put on all of my accounts, draining each one. Now I have no money, no way to pay bills including my rent and car payment, and no money for groceries this week. Nobody had contacted me and I had no idea that this was coming. I talked to a friend of mine at the bank and he gave me a contact number to call. of course it’s the weekend and I’ll have to wait until Monday but I’m unsure of what options I have to fix this.

    Are they required to provide me with the evidence to why they think I owe them that much money?

    If there’s a glitch in their system and this was a mistake, is there legal action I can take for putting me through this hardship?

    I just don’t understand how I could owe more money in taxes that year than what I probably made, even if I failed to file.

    Thank you ahead of time!

  113. Kenneth K on Sun, 3rd Mar 2013 8:51 am
  114. I owe roughly 4k for 2009, 2010, and 2011 and want to make a payment arrangement w/ them, will they work with me, they say i didnt file in 2004 but was owed a refund that year, how can i get that applied to my tax debt ….will i see a irs collector at my job?

  115. Jan Roberg on Sun, 3rd Mar 2013 4:05 pm
  116. Hi Laurie,
    For one thing, if your mom deposits those checks into her own bank account after the levy, the bank has to release those funds to her. They can only hold the funds that were in the account at the time the IRS issued the levy.

    That said, she may not feel comfortable having her money in the bank.

    It is not illegal for her to sign the checks over to you and have you give her money as she needs it.

  117. Jan Roberg on Thu, 7th Mar 2013 9:58 pm
  118. Hi Jenny,
    If the state gets it’s money twice, you will eventually get your money back. It will take them awhile to sort things out, but you will get your money. Make sure that you follow up if you don’t get your money within a month. Then follow up again in another month if nothing happens.

  119. Jan Roberg on Thu, 7th Mar 2013 10:00 pm
  120. Hi Brad,
    If you have an exchange rate for a specific date, that’s the best choice.

  121. Jan Roberg on Thu, 7th Mar 2013 10:01 pm
  122. Hi Diane,
    You will need to contact them and wait on hold (forever). You’ll want to reinstate your installment agreement. Get through to them before they levy you.

  123. Jan Roberg on Sun, 10th Mar 2013 9:01 am
  124. Hi Sherri,
    You’ve just told the tragic tale of what happens when you don’t keep up with your offer in compromise–you miss your payments and you lose your deal. And you owe a lot of money to the IRS. But here’s a few more things you need to know: one–while you are in an OIC, the statute of limitations is suspended–that means that the clock isn’t ticking on the 10 years. The clock also stops during a bankruptcy. The IRS has all sorts of ways to make the clock stop.
    Plus, do your really want to put another 10 years of your life on hold? Seriously. Right now you can’t do anything. If you had enough earnings that you owe the IRS $69,000–don’t you want another good job? Do you really want to keep hiding for 10 years?
    I suggest that you contact the IRS, and get yourself into a payment agreement. Explain all the issues, why you can’t pay more than $X and work something out. Whatever you do, make a schedule that you actually can keep, not one that you’re going to miss deadlines on. And then live your life, the one that you’re supposed to live, not one where you’re hiding from the government for 10 years. You deserve better than that.

  125. Jan Roberg on Sun, 10th Mar 2013 9:12 am
  126. Hi Chris,
    You’re not going to like my answer–I’ll warn you now. The state contacted you in 2006–you didn’t respond. It took them 7 years before they actually levied your bank account. But technically–they did contact you back in 2006. So you won’t be able to sue them for not warning you. I know, that stinks, but there you have it.

    Now, the money’s gone and you’re not going to get it back. I’m guessing that you never filed your tax return. What you should have done back in 2006 was to find out what the problem was and fix your 2000 year return back then.

    Since you never filed, you may be able to file now and at least prevent any further damage.

    While the IRS has a statute of limitations of 10 years–the states are a different animal. Here in Missouri, I’ve got a taxpayer who owes for 1989. Although Missouri has a statute of limitations, they can extend it if they have filed a lien–and they just keep renewing those liens before they expire.

    If your funds are still tied up, you may be able to contact the state and have them release some funds for your necessary bills. Have access to a fax machine and copies of the bills ready. I’ve done that before for clients with the IRS–I don’t know how your state will react.

    The whole point of the levy is to get your attention–which it did. Get this old issue handled and out of the way. Make sure you don’t have any other old debts that they intend to levy on either. Good luck.

  127. Jan Roberg on Sun, 10th Mar 2013 12:13 pm
  128. Hi Kenneth,
    First, the IRS will not apply your 2004 refund to anything because the statute of limitations has worn out. Sorry.

    But they will work with you on a payment agreement. Call them, make a deal. If you call them, they won’t be coming to your work. I’m thinking the minimum payment they will accept would be about $60 a month. If you can pay more, do so and get it taken care of. They just keep piling on interest if you don’t pay if off.

  129. Chris on Wed, 13th Mar 2013 8:58 am
  130. Thanks, Jan. I was able to get in contact with a representative with the Iowa Department of Revenue and it sounds like they had never received any record of me filing. He told me that the state generates a return based on my likely income for that year (apparently they thought I made 6 figures while I was in school?!).

    I contacted the IRS, got a transcript for that year, and refiled. I’ll follow up this week to see if my issue is fixed. The representative also told me that the state hadn’t taken the money yet. The bank is holding it and if the issue isn’t resolved within a certain amount of time, the bank will issue a check for the amount held to the Department of Revenue. Hopefully we’ll come to a resolution soon.

    I’ll go ahead and speak on behalf of this whole message board. THANK YOU for taking the time to help us out!

    I’ll keep you posted regarding my situation.

  131. Jan Roberg on Wed, 13th Mar 2013 8:54 pm
  132. Thank you Chris,
    I appreciate the comments. Good luck and do keep us posted on what happens.

  133. allen on Wed, 27th Mar 2013 8:54 am
  134. IRS stated I never filed my returns. Notices they sent went to an address I never lived at. Got notice at work of garnishment. I was laid off and all severance was garnished. Been a year and a half and company is hiring again. Will that same levy be in place if I am rehired?

  135. Martha on Sat, 30th Mar 2013 5:35 pm
  136. My daughter signed a lease agreement with an apartment complex in VA and after a few months into her second year of the lease she fell into a hardship and was unable to pay her rent the rental office evicted her now they have a lawyer that have put a levy on her bank account. they took $264 plus 125 in the first transaction and two weeks later they took her pay check of 900. her account is frozen and she can not get anything out of it. My question is how long can they keep a levy on her bank account? The 389 was the amount she had in the bank when the levy was put on the account, but the 900 came into her bank two weeks later and they still got it as well.

    If she was to get a pre-paid visa card could they find out about that account and levy it as well. they sued her for 6 months of rent because they said she broke the lease, but they actually evicted her and she had no choice but to leave.

    any information would be appreciated.
    thank you

  137. Barb D on Tue, 14th May 2013 1:55 pm
  138. I have a single account. Before I got married my husband had a past amount due to IRS. He was living with a woman, and taking care of her children. So she convinced him it was legal for him to claim them. She then turned around and had the biological father claim them as well. Getting money from both men, out of the deal. When it all hit the fan, they came back to my now Husband for that money that was refunded to him. Now fast forward to today, I’m married to him. He owe’s 2900.00 and they sent out a levy form. My question to you is, can they levy my account if his name isn’t on it, but his Direct deposits go into my account?

  139. Barb D on Tue, 14th May 2013 1:57 pm
  140. Oh I forgot to add, that they are already going into his pay check and deducting money as well. I’m confused about it, because they keep sending letters as if he isn’t making payments. Although that isn’t true as they take extra for his past debt, every paycheck!

  141. Jan Roberg on Sat, 15th Jun 2013 8:50 pm
  142. Hi Allen,
    So the IRS garnished your severance pay a year and a half ago and now you’re getting rehired. Will they still garnish your pay?
    My best advice is for you to call them. Figure out where you stand, file those back tax returns, and make some sort of arrangement so they don’t garnish your wages.
    My best guess is the garnishment won’t be active right now as you’ve been gone from that company for over a year. That said, once the IRS finds out that you’re working (probably next tax season) if you still owe them money, then they will be going after it. Beat them to the pucnchline and get yourself caught up.

  143. ahom on Sun, 23rd Jun 2013 11:43 pm
  144. My mom is a co-signer on my bank account and she has received a notification that the IRS is threatening to levy her AND my bank accounts. She has been a co-signer on my account since I’ve been living abroad and it was nice to have her able to access my account when need be to deposit money etc. Is there a way to remove her from my account before the levy goes into place so I don’t have my money being paid to the IRS?? Or can she contact the IRS and explain that my account should be left alone?!

  145. Ed on Tue, 25th Jun 2013 10:30 am
  146. So the IRS has caught up with me, I need to file for the last 5 years and fear I may owe up to 50-60k in back taxes not counting late Penalties or interest. They kept my last return and are taking about 75% of my check. If I get a 2nd job will they take 75% of that too? Help. Advice?

  147. Jan Roberg on Mon, 1st Jul 2013 8:14 pm
  148. Hi Ed,
    The IRS is already levying you so you’ve really got nothing to lose here. If you get another job, they’ll find you eventually and they’ll start garnishing that check as well. So, what to do?
    File those back tax returns. That’s step one. They won’t negotiate with you without it. At 50-60 thousand dollars, I’m thinking it’s time to make an offer in compromise it you come anywhere close to qualifying. Here’s a link to the IRS web-site “pre-qualifier” to see if an offer would work for you:

    Even if you don’t qualify there, you can probably do some paperwork to set up some type of payment arrangement so that they’re not taking a full 75% of your paycheck every week. Good luck.

  149. Jan Roberg on Mon, 1st Jul 2013 8:20 pm
  150. Hi Ahom,
    I would have her contact the IRS and explain that she is only a cosigner on the account because you are currently out of the country. It may or may not work. I had one client where the IRS said fine–and they took the son’s bank account out of the parent’s IRS levey. Another time, the IRS refused because the parent had actually used the son’s bank account for his own purposes.
    When your mother contacts the IRS, they will probably ask her to fax recent copies of the bank statement to them. She’ll want to show that all the transactions in the account are for you and not for her.
    If the IRS already has the levy in place, only the IRS can remove the levy. So definitely have her contact them first before you have her removed from the bank account. She should make sure that she has the name and fax number of the representative at the bank so that she may give that to the IRS–it will speed the process of them taking the levy off. (If they decide to be helpful.)

  151. Jan Roberg on Sun, 14th Jul 2013 3:40 pm
  152. Hi Martha,
    Your daughter’s account was levied by her landlord, not the IRS. I’m afraid that I can’t help you. I think you need an attorney, I’m not a lawyer. Sorry.

  153. Jan Roberg on Sun, 14th Jul 2013 4:03 pm
  154. Hi Barb D,
    A couple of thoughts here: Your husband shouldn’t be able to direct deposit his check into your bank account if his name isn’t on it. I’m guessing it must be legal in your state.

    That said, if your husband’s name is not on your bank account, the IRS should not be able to levy your bank account for his back taxes.

    But there are other issues here. First, you will want to claim injured spouse whenever you file a tax return. The IRS will levy whatever should come back to your husband, but they should refund anything that should be yours. It could help you a bit.

    About the levy on his paycheck, that’s taken before the check actually goes to your bank account, so there’s not much you can do there.

    It’s possible that your husband could contact the IRS and make an installment agreement to pay back the money he owes, the could get the levy lifted. Although it may just make more sense to leave the levy in place and get that whole back tax mess finished up. You sort of have to look at the situations and do what’s best for you.

    I would recommend not putting your husband on your bank account until this mess is over with though. Once his name goes onto your bank account, the IRS could go in and grab your funds too.

  155. Ashley on Wed, 31st Jul 2013 12:27 am
  156. Hello,
    So my mom is a co signer on my bank account.. I’m only 16. Today I realized I am about $1,400 short. And thats ecause there is a levy on my account. I the only one that usesy account. And my name is on everything. Is there a way I can get my money back? I did nothing wrong for it to be gone. It’s money. By The way I hae direct deposit through my work to my account do that proves it’s mine… How do I go about this!

  157. Jan Roberg on Sat, 3rd Aug 2013 10:00 pm
  158. Hi Ashley,
    I’m sorry that happened to you. It looks like the money is already gone so it’s too late to put a stop on it. If the IRS hadn’t already taken the money, I’d think you’d have a good chance at stopping the levy–I did it before when the IRS did that to one of my client’s children. But once the money’s gone–it’s gone.
    The worst part is–you never even knew what was happening. Since you’re only 16, I don’t know if you can take your mother off of your bank account. If you’re allowed to have a bank account without your parent’s name on it, I’d take her off.
    I’m guessing that’s not an option for you.

    My best guess is that that money is gone. The IRS would not have levied if they didn’t believe they were owed the money. Now that they’ve got it, don’t expect them to give it back. You’ll have to get that money back from your mother.

    If all of your mother’s tax has been paid, there’s not risk for a future levy. But if she still owes, then you’ll want to find ways to protect yourself. You might not want direct deposit anymore. Keep a little money in the account so you can cash checks, but then you’ll want to cash your pay checks and maybe put the money on one of those reloadable check cards. Once you’re able to have a bank account without your mother on there, then you can have a bank account again.

    If I’m misunderstanding and the money is still in the bank–just levied (there’s 28 days between when the levy is issued and when they actually take the money), then you have a fighting chance of stopping the levy. You’ll have to make the call to the IRS with your mother present, and she’ll have to swear that she does not use that account. It’s not going to be easy, but if they haven’t taken the money yet it is possible to save it.

  159. Jessie on Sun, 11th Aug 2013 3:47 pm
  160. Hello, my wife and I received an IRS tax levy against my property and future assets. I have a severance check that I tried to cash directly from the bank issuing my paycheck. It was Saturday, the bank teller said there was an error code on their system and their home office was closed so they couldn’t verify anything and to come back Monday. I’m hoping I can still cash my check and the issue was merely the paycheck amount. I have not received any letters informing me of a bank levy and the letter isn’t clear about how any of my checking accounts are or can be affected. 1) Is this a sign that I can not cash my paycheck? 2) My tax person said the property levy should only affect my home and a letter we received from the IRS states I am on a “do not collect” status for a period of 1 year. Can she be wrong and that the property tax levy includes bank accounts as well?

    thank you

  161. Jan Roberg on Wed, 14th Aug 2013 8:32 am
  162. Hi Jessie,
    You should be okay. If the IRS has you on the “do not collect” status–they won’t levy your account. Now usually, a property lien is only on the sale of the property. But you said, “property tax levy” so if your county put a levy on you for property taxes–there may be an issue there. I’ve only dealt with property lien’s which would not affect your bank account.
    If you truly are having a problem with your bank because of a levy–you can go cash your check at a check cashing place. Yes, there’s a fee, but at least you’ll have some cash. Then contact the county tax authority that placed the levy and get things worked out.
    But if it’s just a property lien– (grammar is everything isn’t it?) if it’s a lien–your bank should be okay.

  163. Tiger waters on Mon, 19th Aug 2013 10:51 pm
  164. Hi Jan – it’s been about a year since my original notification from the irs that I owe back taxes for a large amount. The company they claim paid me this income I have never heard of. It is my belief my identity was stolen or there is some sort of error with the irs. I have called the irs numerous times and when I have talked to a agent I have followed there instructions and sent any paper work they requested. Today I walked into my bank to find my account levied. I have a small business at another bank that I am concerned about. Does the irs typically only levy one account at a time or does it levy all bank accounts at all banks within the same time period? I’m hiring a agency on my behalf but worried about my small business account and property.

  165. Jan Roberg on Sun, 25th Aug 2013 3:56 pm
  166. Hi Tiger,
    You’ve got a good question–does the IRS only levy one bank account at a time or will they levy everything? The answer is–it depends. It depends on if they know about the account and if the account is attached to what they think is owed. For example: I represented a person who had a checking account and his name and social security number was also attached to his kids’ bank accounts. Now the chldren had grown up and moved on, but the father’s name was still attached to the accounts from back when the kids were in high school–the IRS nailed the kids’ accounts.
    Your business, if the IRS has a record of it being tied to you–could be in danger also. Your best bet is to go to the bank and check on the account. It may be wise to move your money if they haven’t levied yet, just to be safe.

  167. Rick on Tue, 1st Oct 2013 1:14 pm
  168. Hello, I’m a 100% disabled for mental problems and more. I can’t drive nor work another job otherwise the VA will take my disability away . I also have no further reviews in the future. My wife also gets $400 for aid and attendance. My wife also receives $380.00 from her Ex as part of his retirement. after their divorce. We spoke a layer here in Tennesse and he mentioned the 100% disabled vets don’t pay any state, federal tax in this state..All my direct deposits go into my wife account. My name is on nothing so does. I didn’t have to pay anything for last 2 years.

  169. Jan Roberg on Tue, 1st Oct 2013 8:06 pm
  170. Hi Rick,
    I’m guessing that you have a balance due with the IRS? It sounds like you’re in a “currently uncollectable” status. You may be there forever. If I were you, I’d just keep an eye on the situation. Once a year, the IRS will send you a letter, you’ll call them and say, “disabled vet, low income” etc. and they should continue the status.

    They can’t garnish your VA payments and your VA payments aren’t taxable. The IRS can count your VA payments as money that is available to pay debt–but they also need to allow you enough money to buy food, clothing, etc.

    If your VA check is being deposited into your wife’s account, I’m thinking that your name must be on there somewhere, in which case, the IRS could levy that account if they were going to issue a levy. So if that is a concern for you, be aware that it is a possibility.

  171. veronica molina on Thu, 10th Oct 2013 1:24 pm
  172. Hello so I had a question so I am married thru civil court for about 6 yrs my husband owes irs mobey feom before he was w me and now he hasnt paid either so Im trying to sav money for a house and was wondering if tge irs take my money since im married to him but hes not on my bank account nor I have his last name

  173. Jan Roberg on Fri, 11th Oct 2013 8:07 pm
  174. Hi Veronica,
    It doesn’t matter if your names match or not–just so you know.

    Now, the fact that he is not on your bank account probably protects you, but I would go to the bank and talk to your banker just to make sure.

    The debt is his from before you were married–but if you were to file together and you had a refund–the IRS would take your refund even though it’s his debt. You would need to file an “injured spouse” return to protect yourself.

    Since you want to buy a house, I’m assuming that you would get the loan together–and his debt could keep you from qualifying for the loan. You’ve got your work cut out for you on this one.

    My guess is that it would be difficult for the IRS to levy your bank account for your husband’s debt given that he’s not on the account and you have not part of the debt yourself, but make the phone call to your bank just to be on the safe side.

  175. Rick on Sun, 27th Oct 2013 10:27 am
  176. Thanks for your reply regarding PTSD, SSDI & the possible of garnishment by the IRS. I have no taxable income, however I read somewhere that there is a limit for a single or jointly income over a certain amount that might set off the IRS. Thanks

  177. Courtney S on Sat, 7th Dec 2013 2:21 am
  178. Hi Jan,

    So my question is pertaning to state taxes. I received a letter earlier this year stating I owe for 2010. I did set up arrangements but I wasnt able to keep them. The state has stated I cant set up a new arrangement until I pay what I have missed in payments. That basically means I would be paying it off. I dont have the funds right now at all. I called today and was told they can force garnish at anytime. My question is Ive been using the Netspend Prepaid Visa cards for the past year, will they be able to put a levy on that account?

  179. Jan Roberg on Sun, 8th Dec 2013 2:49 pm
  180. Hi Courtney,
    I’m sorry the state is treating you so badly. Here’s a case where you’re trying to do the right thing and they’re threatening you instead. That stinks. (Sorry for the editorializing but seriously, It seems people miss payments because they don’t have the money.)

    Anyway, to the best of my knowledge, there has been no way to garnish a Netspend prepaid Visa Card. (At least not yet.)

    That said, if you’re having your paycheck deposited to your net spend card–your paycheck could still be garnished before it’s ever sent to you. The state can contact your employer and garnish your pay. That’s what you need to be concerned with. Sorry. Just wanted to make sure that I made that clear.

  181. Khar on Fri, 13th Dec 2013 7:52 pm
  182. Hi Jan!

    I received a notification from my bank that $1500 from my savings account is on hold. So I called my bank to ask the reason for the hold and they told me that its the New York state tax put a hold on it. And NYS tax left their number so I can call them. So I did and I asked what is that $1500 for, this lady told me that we owe taxes.
    I do remember we owed United treasury which is the federal tax, but didn’t assume that we will also owe the NYS tax. The tax we owe with federal has been paid because we received the notice and we called to make payment arrangement.
    Now, back to NYS tax. I told the lady that we haven’t received any notice about it. She mentioned that they sent out 4 notice which 2 was sent back to them and that means the other 2 was received. Which I told her, we have not received it. Because if we did, we would have paid or made arrangement just like the federal. I also mentioned to her about the federal that after we got the notice, we made the call and made payment arrangement. So I asked her what address she has on file. She told me the address but they don’t have the apartment number on file. So I told her, no wonder I am not receiving it. She still insist that 2 out of 4 notices they sent was not returned, assuming that it was received. The apartment that I live for the past 2 years has around 120 apartments. If they don’t have the apartment number, of course it will be lost.
    I asked her what else she can do, since they didn’t have my apt number that is why I am not receiving notices. She said she cannot do anything cause even if they sent it to the wrong address, that there is a notice on the federal (first notice that we owe taxes) to also check NYS tax if we owe money.
    Now I am looking through my papers and couldn’t find the first federal notice. But I don’t recall on federal to also check NYS tax.
    This is just frustrating. She told me after the attempted 4 notices since April 2013, that a warrant was issued and levies my bank account of the amount owed. Isn’t there a time frame on how long they should try and get a hold of me before they do a warrant. It’s just upsetting that I have confirmed that they didn’t even have my apartment number. And I have mentioned that federal was successful on sending me the notices with my correct address and how come NYS tax has an inaccurate address or incomplete address.
    This concerns me since she even mentioned that it will be in public records on my credit report. Will this affect my credit?
    Can I do something about it? It is not my fault that they don’t have my apartment number when they should have it all correct since they have my information when we filed taxes for last year.
    Oh and I asked her to send me the original notice with my correct address. I gave her my apt number which she updated my address on file just yesterday.

    It’s just so confusing since we started paying federal owe tax around september 2012, filed tax april 2013 this year, when we received our federal return, federal deducted the remaining balance on what we owe as to make it payment in full, which was around july 2013.
    NYS tax is telling me that they sent first notice march 2013 that we owe taxes.
    Shouldn’t they have sent it sooner since federal did theirs sept.2012. Also, we even received our NYS tax return around June 2013 without any deductions. They didn’t even deduct it.
    I know I have lots of questions, but hope you can answer all of the. I would very much appreciate it.

  183. Jan Roberg on Sun, 15th Dec 2013 7:04 am
  184. Hi Khar,

    You have a lot of questions so I’m going to reprint part of your comment with your questions to keep them in order.

    This concerns me since she even mentioned that it will be in public records on my credit report. Will this affect my credit?

    Yes, tax debts can affect your credit report.

    Can I do something about it?

    Get your payment arrangement set up. You’ll need to contact New York to find out if they have a lien on you or not. The IRS generally will remove liens if you make a “direct debit” arrangement. I don’t know about New York’s rules. It sounds a little strange, but it’s possible that they’ve got the levy without placing a lien. (Yes that seems backward but the feds do it, I don’t know about New York.)

    It is not my fault that they don’t have my apartment number when they should have it all correct since they have my information when we filed taxes for last year.

    You might want to double check that. Sometimes the software has a box for the apartment number but people put it on the address line and the apartment number gets cut off.

    Oh and I asked her to send me the original notice with my correct address. I gave her my apt number which she updated my address on file just yesterday.

    It’s just so confusing since we started paying federal owe tax around september 2012, filed tax april 2013 this year, when we received our federal return, federal deducted the remaining balance on what we owe as to make it payment in full, which was around july 2013.
    NYS tax is telling me that they sent first notice march 2013 that we owe taxes.
    Shouldn’t they have sent it sooner since federal did theirs sept.2012.

    The states basically rely on the federal for their information. New York would be behind because they would have waited for the federal to show what the status was.

    Also, we even received our NYS tax return around June 2013 without any deductions. They didn’t even deduct it.

    I’m guessing you received your refund because NY hadn’t discovered that you still owed yet.

    I know I have lots of questions, but hope you can answer all of the. I would very much appreciate it.

    Jan’s questions: The problem with trying to answer questions online in a spot like this is that clearly I don’t know the whole story. Did you file taxes in 2012 and owe and just not pay? Or did you file taxes in 2012 and you later got a notice saying that you missed something and needed to pay?

    I’m guessing that you got an IRS CP2000 letter–the one that says you missed something on your return and now you owe more. (Because when you found out that you owed–you made arrangements to pay so that seems the logical answer here.)

    So did you get some professional help when you got that IRS letter? The reason I’m asking is because often people don’t owe as much as the IRS says they owe. And if you had a professional help you, she would have known that once you get that IRS letter, you need to amend your state return also.

    You’re stuck with the levy, even if you don’t really owe the money, you still have to refile and it will take some time to straighten things out. But I want you to have someone take a look at your taxes. If they find that you shouldn’t owe as much as the IRS said you can still file an amendment with both the IRS and with New York. It’s worth the money for you to check this out.

  185. Richard from Tennesse on Tue, 4th Feb 2014 4:23 pm
  186. Hi Jan, going back to my questions on Oct 1st 2013. I wanted to clear things up for myself to fully understand my tax situations for 2013. The IRS has not threatened to levy my bank account, yes, it’s true all my 100% disabilities I receive from the VA and SSDI are deposited into my wives banking account. I might note that was granted 100% from the VA. I cannot work otherwise my wife % I will loose our monthly compensation and we will be on the street.

    I might mention that previously we lived in Detroit when the auto indusary began to fold up. We and almost everyone thought our jobs were finished. I waited it out on unemployment until I received my termination papers (26 years). During that period, I didn’t pay any taxes.

    Not long after that Obama offered a plan for those that couldn’t afford their mortgage payment, The government would work out a plan to keep your house but I had to pay $400.00 more per month. There was no we could afford all of this was offering a plan to save everyone from loosing their house. We packed up our belongings, cleaned the place up like new and wrote the builder explaining why we had to leave with the key inside.

    We had moved to Florida and leased a house for one year. We both worked for just low wages. During that year in Florida we received many phone calls & letters regarding the forclosed house in Detroit.. We ignored them and after a year moved to a house we bought under a land contract. We have managed to put all our money under my wives banking account. Before we made these transactions, we got the advise of bank managers, lawyers and they all agreed because my wife’s name was not on the puchase ( agreement) and I wasn’t married to her at that time.
    The lawyer said to keep a low amount of money in my account like $500.00. All my possisions are in my wife’s name.


  187. Jan Roberg on Tue, 4th Feb 2014 5:34 pm
  188. Hi Rick,
    You’re still not getting threatening notices from the IRS, I’m thinking you’re okay. You might want to check in with them once a year, keep yourself on their “currently uncollectible” status, but that’s about it.

  189. Raven on Wed, 7th May 2014 11:27 am
  190. If you set up payment arrangements with the IRS after the levy, will they still take money from your bank account?

  191. Tom on Thu, 19th Jun 2014 11:11 am
  192. I’m not sure if you deal with company tax issues? We owe the irs $50,000 and they sent a letter to one of our customers to pay the irs on our behalf instead of paying us. That company paid $12000 to the irs. Now the irs called them and said to not pay us until he okays it because the debt is not paid off yet. Can they just call and tell my customer that? i would think they need to send a letter for every request.

  193. Daniel on Thu, 19th Jun 2014 11:39 am
  194. I just received a settlement check from my divorce and I have a tax lien. If I call the FTB and make arrangements to pay them monthly and inform them of my check will they still take it when I deposit it? It’s the only income I have left and I am afraid they will take it all. What is your advice on what I should do

  195. Jan Roberg on Sun, 22nd Jun 2014 7:57 am
  196. Hi Daniel,
    A couple of thoughts here. First–terminology. The words can be confusing.

    If the IRS has a lien on you–that means if you get a refund on your taxes they can take it. If you sell your house, they can take the tax debt before you get the rest of the money. That’s a lien.

    A levy is then they tell your bank “We’re owed this much money by Daniel and we’re sucking it out of his bank account.” (Okay, they don’t say that exactly, but that’s what they mean.

    If your paycheck is being garnished, that’s a kind of a levy also.

    So–if there is a lien–you’re fine to deposit your check. The IRS isn’t going to touch that.

    If they have already levied your account–then the money that was in the bank at the time they put the levy on will be taken, but additional funds will not be taken, so you may deposit your check.

    But if–AND THIS PART IS IMPORTANT–if the IRS sent you a letter threatening to levy your account–then your settlement check could be in jeopardy. That’s why knowing exactly which words they used are important.

    Now–if the IRS is threatening to levy–you can talk to them, work out some sort of payment arrangement and they will call the dogs off. That’s probably your best option.

    If you really can’t pay them and can’t be put on their “currently uncollectable” status, then I would cash the check and put all the money onto a prepaid debit card. (I know, that sounds a little slimey, but if you’re desperate you do what you gotta do for now.)

    But if it’s at all possible to work something out with the IRS, that really is your best bet in the long run. Good luck.

  197. Jan Roberg on Sun, 22nd Jun 2014 8:22 am
  198. Hi Tom (post 95, sorry I’m out of order),
    Um yes. Yes the IRS can. Ouch! It’s on page 6 of this publication:

    Basically it says that they can levy your income and they only have to notify you once, and they don’t have to notify you again. They can just do it.

    Why does the IRS do this? To get your attention. (Worked didn’t it?)

    You owe them $50,000. You didn’t call, you didn’t write. They confiscated your money. You still didn’t call, you didn’t write so they’re going to do it again.

    Think of the IRS as a really bad ex-girlfriend. You know, the Carrie Underwood song “Before He Cheats”? That’s how the IRS sees you.

    I’m guessing that your $50,000 is payroll tax withholding? If so, that’s even worse. They are pretty intense over payroll tax withholding.

    So what should you do? Call them! Make nice. Find a way to get the debt taken care of. Many years ago (long before I went into the tax business) I went to work one day to find that the doors to the company I worked for were padlocked shut. My boss hadn’t paid our payroll withholding and the IRS shut us down.

    Call them (or get representation to call them for you) but don’t ignore this.

    Oh, if you don’t know the song I was referring to, here’s a link:

  199. terry on Mon, 23rd Jun 2014 10:33 am
  200. Hello, thank you for your website! It has been very informative.

    I currently owe the irs from 2009 return (1800) and they sent me a letter stating to pay in full in 10 days or they would pursue options against me. I currently have no bank accounts in my name. Everything is in my wife name, my job direct deposits directly into her account. The house is in her name as well. The only thing in my name is a truck of which i owe like 16k on still. (they can have it lol)

    can they touch my wife bank acct if my direct deposit goes to it, although my name isn’t on account?

    2nd issue
    This years fax return i owed 7k, hopefully this will be included in the 1800 wage garnishment. We have 1k of the 1800 already, and we are hoping to save up one more month to gather the 800 to pay 2009 return in full.

  201. Naeteeri W on Tue, 24th Jun 2014 2:48 pm
  202. My CPA is trying to negotiate an OIC for about $90,000 in back taxes.

    My sister passed away recently and it looks like I might be in line to inherit her estate valued at $240,000. She died without a will in California which means it will take about 9 months for probate to sort out.

    If the OIC is settled, should I be worried about getting the inheritance and the IRS trying to take it? If the OIC is still pending when probate is finished, can I sign over any inheritance I may be entitled to to my son without the IRS taking it?

    Thanks in advance for your guidance.

  203. sheila on Wed, 2nd Jul 2014 9:03 pm
  204. I owe fed. taxes for 2010, 2011, 2012. The IRS says they did not receive tax forms
    for 2009, I’m not sure what happened it was the only year they owed me $200.
    My bank account was levied only a small amount of money was taken because I was running late to make my deposit. The IRS will not allow me to make payment arrangements until they receive the 2009 forms. If I just start sending payments on each year that I owe will that hold off further action? I owe about $11,000 total and can probably have it paid in full in about 12 weeks. The IRS is sending me info. to get 2009 filed again. We had a fire in 2011 and I think my copies were lost then because I have been unable to locate them.
    Thanks for any suggestions

  205. Jan Roberg on Sat, 5th Jul 2014 7:49 am
  206. Hi Sheila,
    Bottom line, you need to get that 2009 filed right away.

    Now, usually the IRS is very happy to accept “voluntary payments” but that doesn’t mean they can’t still go in and levy.

    When you talked to them, did that give you a date to get that filed? Usually, I’ll call and they’ll say “we won’t do any further actions until such and such a date.” Did they do that for you? If not, call them back and get a firm deadline.

    Then, make sure you get those taxes done and turned in before the deadline. Don’t just mail them in, get the IRS on the phone and say, “I’ve got these taxes, I’m going to fax them to you, not let’s get our payment arrangement done.

    Since you’re going to have a refund (which you won’t get because it’s a 2009 return) they won’t be adding any additional tax to the balance due so they can process your payment arrangement.

    Now since you’ve had balance dues for three years in a row, you should either start making estimated tax payments or withholding more (depending upon your circumstances.) It’s okay if you have a small balance due on April 15th that you can pay off immediately, but you don’t want to have any huge balances again which require payment agreements. It’s time to pull yourself off their radar.

    If you haven’t received those 2009 documents yet, you might be able to get them yourself online. Here’s the link:

    What you’re looking for is the “wage and income transcript”. I say “may” because in order to register you have to answer a bunch of questions about yourself and you might not know the answers. Example: you have a bank account at XYZ bank, what year did you open the account? The questions are tough to prevent identity theft, but they are tough.

  207. Jan Roberg on Sun, 6th Jul 2014 7:56 am
  208. Hi Naeteeri,
    I’m sorry for the loss of your sister. It must be so difficult for you to try to deal with all this and her death at the same time.

    One of the questions on the Offer In Compromise forms is: Are you the beneficiary of an estate? So the answer is yes. So if your CPA hasn’t turned in the paperwork yet, then you’ll need to answer truthfully. And standing to inherit $240,000 would basically make you lose the offer.

    That said, if the IRS already has the paperwork, then the issue would be where do they stand with it? I know that I worked on one offer and quite frankly,I think the IRS took so long to handle it because they figured my client was going to come into money and they wanted to see what would happen. (He didn’t and we closed he deal, but it took much longer than any other offer I ever worked on.)

    So, if you haven’t filed you–you’ll need to mention the will. If you’ve already filed, then it depends upon if the IRS is going to ask you for more information or not. You have to tell the truth.

    On the plus side, with $240,000 you can afford to pay off the $90,000 IRS debt. I know I’m not sounding helpful, but the Offer in Compromise is for people who cannot afford to pay, not for people who just don’t feel like paying. With $240,000–you’ve got enough money to pay your debt.

    About transferring the money to your son. That would be a reportable “gift” and you’d need to file a gift tax return (no tax on it, just a reporting requirement.) To which the IRS would then see that you had $240,000 to give away when you should have been paying them.

    You might need to sit down with your CPA to rethink your strategy.

  209. Jan Roberg on Sun, 6th Jul 2014 8:32 am
  210. Hi Terry,
    When you get a letter from the IRS saying you have 10 days to do something before they levy your bank account, the best thing to do is call the IRS. They want to hear from you. They want to know how you’re going to pay them.

    Now, if your name is not on your wife’s bank account, they shouldn’t be able to grab it–but make sure it’s not on there. I’ve seen the IRS grab adult children’s bank accounts because their parent’s names were on there but it was forgotten. I’m concerned that your paycheck is being direct deposited to an account that doesn’t have your name on it. But in some states that is legal.

    You say you have $1000 of the 1800 save up already. You could set up a payment agreement for about $125 a month which would include your $7000 of current debt. That would get the IRS off your back and you’ve got money in the bank to start paying.

    Also, I’d make sure you were withholding more or making estimated tax payments so you don’t fall behind for 2014.

  211. jt on Tue, 8th Jul 2014 7:34 pm
  212. wow jan, thank you for so much info. going strong for a couple years now!

    I did hope you could provide some insight on my situation.

    I have old tax debt from 2003, 2004. I got up to compliance in 2007 by filing my old returns and was set for non-collectible status at that time.

    I noticed through an online transcript that I’m set to be on collectible status this month (I hope this is triggered because they had no return in 2012 but maybe its my 2014 income that caused it).

    I will try filling out the form to be set to non-collectible again but if that’s not an option what might I expect right away?

    I was levied once before, probably in 2007 on a checking account. Can they levy again anytime without notice now (on accounts that didn’t even exist in 2007).

    Since they may have to forfeit their balance soon will they be terribly aggressive (ie levy wages?)

    I did a little research on wage levies in Illinois and it seems that they would get a terribly small amount from me, barely $2000 of the $25,000 debt over 3 years (they should expire from statute of limitations then). Would an offer in compromise even be worth looking into? If they look at it under those terms, I would pay them at amount right now.

    I’m afraid they are going to try to pressure me into making large monthly payments and extending or suspending the statute of limitations so I could just pay off forever.

    I do feel ashamed and embarrassed about using the law to my advantage and trying to just let it dissolve but this debt has been a constant shadow and I can’t wait for it to be over.

    thanks for your time.

  213. Jan Roberg on Sun, 13th Jul 2014 8:04 am
  214. Hi JT,
    First, if you’re on non-collectible status with a statute of limitations coming up–you never want to stir up the hornets nest by not having your taxes filed.

    Okay, that’s said. So, they’re on to you and you’ve got to start over. First, you be the one to contact the IRS, not the other way around. Don’t wait for them, you know you’re on the list.

    First, call them and see if you can get back on currently uncollectable. My guess is the answer is no, because you say you’ve got income now.

    If you are anywhere near the statute of limitations, they are going to try to pressure you into huge monthly installments. You get around that by filling out a 433A form showing them your current income and expense situation and that’s how you reduce the payment.

    If you try to make an offer in compromise, it will extend the statute of limitations–so, if your balance due is set to expire in December of 2017 right now, then the IRS will extend the collection date for the debt for as long as your case in in the OIC office (which can take a whole year.)

    Another thing about an OIC. Let’s say you file it, it gets accepted, and you pay. Then two years later you forget to file your taxes. Boom! All of the debt you owed comes rolling back in plus penalties and interest.

    OIC is not always a good option for someone with a history of not filing returns. Just saying.

    The fact that you have a new bank account doesn’t affect the IRS’s right to levy. They only have to issue the notice once and the right to seize is open. And, remember, they know everything when it comes to things like bank accounts. You will call, they will ask about your bank account, but they already know. It’s shocking what they know.

    I would like to say they would issue you a new levy notice, but I can’t guarantee it. I would think they would, I mean it’s been seven years, but better to be safe than sorry. Call them right away and get things squared. Go for the lowest possible payment that you can get and let the statute of limitations get you through this.

    When you set up your installment agreement, use the direct debit option and never be late on a payment because the closer you get to the CSED date, the more antsy they’ll get and the enforcement actions will be stiffer.

  215. shannon on Thu, 17th Jul 2014 8:31 am
  216. I got some trouble with the irs.. I hired someone they took our money and got us a payment arrangement and were paying it and it s for 4 yr from 2003, ,2004, 2005 and 2006 where we had a business that was not keot up right but we closed it . Now we have been paying this arrangement and now this new thing came in the mail stating civpen for more money they state for some reason was not included in the arrangement we have. I do nt want to lose what wehave we barely make it as it is and we dont have anymore money to hire someone again should we file bankruptcy or is that the irs’s fault for not including them in the agreement. Because we haev nothing but our home and they already have a lean on it.. I am so worried..

  217. Steve J on Fri, 1st Aug 2014 1:14 pm
  218. Can the IRS – or will the IRS attach my Social Security? I’ve heard yes and no! If the answer is Yes, do they take the entire amount or portion of the total amount?
    i know that the California Franchise Tax Board can Not attach Social Security if the past 2 months do not exceed the total amount owed.
    Thank you…..

  219. Ingrid L on Tue, 5th Aug 2014 11:58 am
  220. I had a question about “past due arrears owed on child support” (the current support order is paid 100% and currently is 600 dollars a month) So my fiancé just received a letter stating that they are going to place a “Bank Levy” on his account. He has a good job and has direct deposit set up on his paychecks biweekly. He checked his account today and his account is negative 34,823.00 (what he owes in arrears) so my question is after he puts a stop to his direct deposits are they allowed to take his paychecks or not? We are filing paperwork so that he will be able to modify his current support amount (600 monthly) to less so that he will be able to make a payment plan to pay on this past due arrears balance. We have a family of our own to support and need to be prepared to what is next. Oh by the way this is in the state of Massachusetts and either of the parents do not live in this state anymore. What can we do? We need help!

  221. Jan Roberg on Sun, 10th Aug 2014 2:24 pm
  222. Hi Raven,
    If you contact the IRS and you have an installment agreement set up, they should not levy your bank account. But, if you don’t make the payments, they can.

  223. Jan Roberg on Sun, 10th Aug 2014 2:30 pm
  224. Hi Shannon,
    it sounds like something got missed in your original agreement or else you had a balance due with a recent return and you didn’t pay that off.

    Instead of paying someone a bunch of money to set up a new agreement, try contacting the IRS yourself, explain the problem, and ask to get the new amount rolled into your current agreement. They might say no, but you never know unless you ask.

    Most likely, they’ll up the monthly amount a bit.

    Now the most important thing is to make sure that you’re either withholding enough, or making estimated tax payments so that you don’t owe again next year so that this doesn’t happen to you.

    But at least give calling the IRS a chance. Some of them are actually nice and can be really helpful–and it will save you a bunch of money.

  225. Jan Roberg on Sun, 10th Aug 2014 2:32 pm
  226. Hi Steve,
    The IRS can levy your Social Security, they can take 15%.

  227. Jan Roberg on Sun, 10th Aug 2014 2:36 pm
  228. Hi Ingrid,
    I do taxes, I’m not an attorney or a social worker so I am not allowed to give advice on child support. I’m sorry.

  229. virginia on Sat, 23rd Aug 2014 5:32 pm
  230. Does IRs give your money back if they over garnish?

  231. virginia on Sat, 23rd Aug 2014 5:37 pm
  232. I had a levy tax and I was 100% sure I dont owe any taxes because when I filed my taxes this march 2014 I did went to IRs and they confirmed that all my taxew are updated. Untill this aug 14 they took half of my paycheck for tax levy and went to the IRs local office they told me its a mistake they use a 2 year old notice . How do ivget back my money that they garnish for a mistake? Thank you.

  233. judy on Sat, 23rd Aug 2014 8:34 pm
  234. I owe money to the IRS and recently went to the bank to cash my paycheck – the bank on which it was drawn. Some error code came up and the bank said they would have to investigate. Could that be the IRS?

  235. Jan Roberg on Sun, 24th Aug 2014 1:25 pm
  236. Hi Virginia,
    The answer should be yes. SHOULD BE yes. But–this happened to a client of mine–the IRS over garnished and since the state also had a lien on her the IRS took the over garnishment and gave it to the state even though the state wasn’t garnishing.

    Technically, the IRS was within their rights to do that as far as the law is concerned, but I think it was a really tacky thing to do.

    So, if you’ve got any other outstanding debt out there, you could still lose out.

    What you need to do is make sure that the IRS releases the garnish as soon as they’ve gotten their last amount of money to make sure they don’t go giving it to another agency.

  237. Jan Roberg on Sun, 24th Aug 2014 1:32 pm
  238. Hi Virginia,
    So when you went to the IRS tax office didn’t they get everything fixed for you then? They should have. And you should be getting your refund check.

    But–it sounds like you may still have an issue. I recommend going in person and making sure that the garnish is released and that your refund is being processed. If they aren’t doing that–then you need to find out why.

    But I think you’re doing the right things and can probably handle it on your own without having to hire someone. You sound like you’re doing the right things. If you’re getting nowhere, then hire help, but don’t waste your money unless you’re really not getting anywhere. You seem like you’re on top of this.

  239. Jan Roberg on Sun, 24th Aug 2014 1:38 pm
  240. Hi Judy,
    Your bank should still be able to cash a payroll check even if there is a levy on your bank account. I’m thinking this is not an IRS issue.

    That said, try taking the check to another bank or check cashing place and see what happens there.

    Or, ask to talk with your personal banker. (You might not have a personal banker but your bank likes to say they have personal bankers.) Get an explanation of the error code. My bank gave me a horrible time a few weeks ago because a client wrote a check to Janice Roberg instead of Roberg Tax Solutions. You would have thought I was a bank robber. So your error code might have nothing to do with the IRS.

  241. kevin on Sat, 6th Sep 2014 7:21 pm
  242. Hi Jan, last month i received a collection call from the IRS stating I owed money. I had moved years before and did not receive any mail correspondence from the IRS related to SFR assesstments that filed on my behalf for 07, 08, and 09. These assessments resulted in a 29k tax bill which is much different than my return would have been. Since identifying the issue i have filed the years in question and have talked to the IRS every week to determine the current status to make sure i’m in compliance. Could you explain what the process is to process my reconsideration returns and what i should expect to here from the IRS when this is completed. Are these returns automatically audited since they have made an assessment and determined a bill or are the returns processed in much like a normal return. I’m curious about this because it has made me extremely nervous going through this process. Also, if the IRS amount stays the same and i can’t afford to pay can i request they levy the balance from my 401k? Will this 401k levy ruin my credit? Should i just try to make monthly payment arrangements? I can’t afford for my bank account to be levied since my job includes having a expense account that reimbursements for me to pay off the credit card companies are directly attached to it. Thanks for you help!

  243. Jan Roberg on Sun, 7th Sep 2014 8:50 pm
  244. Hi Kevin,
    The good thing is that you’re doing the right things. You filed the returns and you’re keeping in touch with the IRS.

    Now the IRS won’t take the money from your 401(k)–not even if you beg. Why? Because, if they levy your 401(k) then you don’t have to pay the 10% penalty. But if you take the money out of your 401(k) to pay them, then YOU do pay the 10% penalty. See why they won’t levy that? Yes, it stinks.

    Now it’s going to take at least 6 months for them to process those returns. They won’t be automatically audited, but they will go through a bit more scrutiny than a timely e-filed return. That said, if the IRS accepts the returns it’s highly unlikely they ever will get audited because they went through the extra scrutiny in the first place.

    So, you’ve got a couple of options. You could make an installment agreement based upon the $29,000 debt–that would cost you a little over $400 a month depending upon exactly how much debt there is. If you can pay the debt down to $25,000 you can do a streamline agreement and not have to file any extra paperwork.

    The $400 a month is pretty steep. And if you’re not going to owe the $29,000 you wouldn’t have to pay that much–it’s just that you’re waiting 6 months to get that cleared up.

    You could fill out a form 433f – a collection information statement, and submit it to get the IRS to give you a lower month payment. Here’s a link to see what it is:

    Since you’re doing a good job of keeping on top of the IRS, you might just ask if they’ll let you set up an installment agreement based upon the revised returns balances. I find that they’re much more cooperative with people are are responding to them. Granted, you’ve got that time lag when you weren’t accessible because of your move, but you’ve been keeping up lately. It’s worth a shot. I’ve had some mixed success with that.

    But most important–now that you’ve got everything caught up, it’s important to keep up with your filing and tax payments. If you file late or don’t pay your taxes on time, it will automatically cancel your installment agreement.

    And one more thing–I recommend having the IRS do a direct debit for your installment payment. That way you’re never late. The IRS is really nasty about late payments and they will cancel your agreement and demand full payment. (And that could trigger liens and/or levies and that’s what you’re trying to avoid.)

  245. kevin on Sun, 7th Sep 2014 10:32 pm
  246. Thanks Jan! Actually there was no balance but there was also no refund. One of my issues is that because it was so long ago I don’t think i have much supporting documentation for the returns and that concerns me as well. What are the chances the IRS does not accept the return and would they tell me anything in the meantime. If i pay down the amount to get it to 25k what would my streamlined payment be. Thanks again for all your help.

  247. jo on Thu, 18th Sep 2014 5:32 pm
  248. My minor child had her account frozen by NYS for a tax levy. Her father is on the account. The account was never used by her father. She receives direct deposit of her paycheck and there is only one debit card issued. The only deposits made to the account were from direct deposits. She was unable to stop the last deposit from going in. The levy was issued about a week before the deposit.Her account is still frozen and shows a balance but zero available. Can they take additional deposits after the levy?
    I have read earlier posts that if the person the levy was intended for calls, it’s a possibility of having the funds released. But what if they won’t make the call? Can the minor call and try to plead her case? Would it be wise to gather all the documentations and mail it? The money is currently still in the account but frozen. A review of the account would very clearly show the money was the child’s and not the father’s.

  249. Cory on Fri, 19th Sep 2014 4:30 am
  250. Ok so I didn’t file for three years in 2008 09 and 10. Last year I had a notice sent saying since I had a refund they would hold until i filed for those years and if I didn’t file it would be filed for me. I ended up getting my refund in late sept. This year I filed and I got the same notice for the same years. Do and now I still don’t have my refund. I thought they filed for me last year and if I owed they would deduct it from my refund I got last year. Should I call them?

  251. Jan Roberg on Sun, 21st Sep 2014 9:21 am
  252. Hi Kevin,
    I haven’t seen your returns. I can’t tell you if they’ll pass or not. When trying to figure out the amount on an installment agreement, take the amount of the debt and divide by 72. (That’s for debts at $25K or below.) So, if you get your debt down to $25,000 then your monthly payment would be $350. (Technically $347.22 but I like to round to a round number.)

  253. Jan Roberg on Sun, 21st Sep 2014 9:25 am
  254. Hi Jo,
    I’ve never had to do that with NYS but I have done that with Missouri. You’ll want to call NY and talk to them. Explain the situation. Make sure you have access to a fax machine. They will probably want documentation like the last three months of bank statements and copies of your daughter’s pay stubs showing that the money deposited is hers and not her dads.
    Good luck.

  255. Jan Roberg on Sun, 21st Sep 2014 10:01 am
  256. Cory,
    Dude. I hear what you’re saying, but sometimes you need to understand how the IRS hears it too. It also helps to understand what they mean. When the IRS tells you they’re going to file your taxes for you– that’s a threat. That’s not a favor.

    I’m guessing that they looked and saw that you didn’t owe for those years, so they don’t file if you don’t owe. The IRS only files if you do owe.

    Why? Because, if you get into trouble later–they can yank your chain for not filing!

    So you should have a refund for this year? And you want your money? Then file those returns. It’s possible you could get your money eventually, but they’re in no hurry. And their attitude is, “Hey, if he doesn’t feel like filing, then we don’t feel like sending a refund.”

  257. Tanya on Wed, 8th Oct 2014 2:52 am
  258. Hi.

    I owe 9,000 in back taxes from 2011 and 2012. Even though I’m receiving unemployment for the first time I called the IRS in June and made payment arrangements. Every month they take money out of my account as per our arrangement. My question I received a surprise notice from my first employer twenty years ago that I have an option to cash out my pension. I decided to roll most of it over however I took portion for myself because I am struggling to stay afloat. I pay the its each month will they take the portion I decide to keep for myself even though I don’t have a levy notice? I haven’t missed a payment.

  259. Jan Roberg on Sat, 18th Oct 2014 9:59 pm
  260. Hi Tanya,
    Since you’ve got an installment agreement in place and you’ve been making payments, I think you’re safe. The money you got out of your pension should have no affect on your payment agreement, and since you’ve made your payments–the IRS won’t bother trying to take the money.

    Now don’t stop making the payments–otherwise your bank account becomes a sitting duck, But it sounds to me like you’re doing the right things.

  261. alexthinksthisiscool on Tue, 21st Oct 2014 10:16 am
  262. I haven’t done my taxes in the past 5 years. 6 years ago I owed around $3k, so the following year I didn’t do my taxes for fear the IRS would then have all my employment info and easily garnish my wages. Fast fwd to now, the IRS has contacted me once about the back taxes from the last year I did my taxes (est $5k owed). Now, last week I had to pull from a 401k to save my house. The check should be showing up any day now but I am concerned the IRS will intercept the funds and I may end up homeless. Of course I need to file the past years taxes, should I file now while 401k check in transit, or start communication with IRS before filing? Bigger question, is it likely the IRS already has dibs on the 401k distribution check I’m anticipating?
    Any answers are appreciated!! Million thx!

  263. alxs428 on Tue, 21st Oct 2014 7:40 pm
  264. Does the IRS take a 401k distribution check before I would get it? I am currently waiting on my 401k distribution check. I owe the IRS $6k from 5 years ago. Of course I want to pay off the IRS but at this point I’m just trying to save my house. Will the IRS intercept my check before I ever see it?

  265. Jan Roberg on Sun, 26th Oct 2014 3:55 pm
  266. Hi Alex,
    Start talking to the IRS. That’s the most important thing. They don’t go after IRA money (it’s not in their best interests moneywise) but once it’s in your checking account it’s fair game.
    Call them, set up a date to have your taxes finished by. Get them done. Set up a system for paying–or maybe you’re currently uncollectable. Sounds like you’ve got some financial problems They might actually listen and they might actually be willing to leave you alone for awhile so you can get back on your feet.
    But you’ve got to make the call first.

  267. Sheila on Thu, 30th Oct 2014 10:02 am
  268. I got notice from the State saying I owed from 2009? I called the state and they said they received something from the IRS, and I had to call them so I did. The IRS figured out that I did owe from 2009 however was paid off in FULL in 2011. PLEASE NOTE THAT WAS A MISTAKE DONE BY MY TAX PERSON AND NOW FIXED.

    I asked if was there anything else due they said no and couldn’t understand why the State was just now trying to Levy my account? I’ve filed my taxes every single year with absolutely NO RED FLAGS! The IRS is sending all the proper documentation to provide to the State, but what a complete nightmare this has been!

    I don’t want this to happen again, so do you suggest I just pull all money out of my account and just keep whatever for bills in there?

  269. Jan Roberg on Sun, 2nd Nov 2014 8:02 pm
  270. Hi Sheila,
    It’s always hard giving advice on a situation when I don’t have all the paperwork, but I’m going to go out on a limb and make a guess based on what I’ve seen happen with other people I apologize if I’m way off base, but here’s what I think is going on
    I think that when you had that problem with the IRS from before in 2009–that got fixed, you’re right about that. But when your tax return got changed with the IRS, they notified the state that there were changes, and you never filed an amended return to correct the state.

    So you’re right about being all good with the IRS–but the state is still wrong. And the state believes you owe them money and that’s why they’re levying your account.

    So, the IRS says there are no red flags–there aren’t any with the IRS because you took care of that. The state is a whole different agency I see this happen all the time.

    No I don’t know what the original problem was–was there income that wasn’t reported, did your filing status change? I don’t know. But whatever it was that changed on your federal return also changed on the state return. And the state tends to be slower about sending out those notices than the IRS is.

    My advice is to keep in contact with the state. Let them know that you are working to resolve the issue. Whether it’s getting them the documentation they need or making a payment or whatever. The state is less likely to levy you if you’re in contact with them.

    But if they’ve already threatened to levy, you might want to pull your money out except for paying bills, just to be safe. Sorry.

  271. jaime s on Thu, 6th Nov 2014 5:59 am
  272. I keep getting fees and penalties on taxes I owe which keep increasing my amount, but by now I have paid off more than the original amount. would the IRS consider the matter paid off if I show that I have paid more than the original amount?

  273. Jan Roberg on Sun, 9th Nov 2014 8:07 am
  274. Hi Jaime,
    That’s a really good question. The basic answer is “probably not”. But, there are a couple of situations where I can go, “maybe……”

    Situtation 1: and this is the easier scenario. If the money that you owed the IRS was all just for one year, then what you can do is ask for an — and this is the right phrase to use — “abatement of penalties”.

    The IRS will never waive the interest, but they will abate penalties if there was only one offence and you were good about making your payments. This is the easiest solution and what you do is call the IRS the old 1 800 829-1040 and get put on hold forever and passed around a bit. But once you get to the right area, you say you’ve paid your bill and would like the “abate the penalties”.

    Now, if you’re paying off several years of back taxes, you’re unlikely to get an abatement, but for one year, they should just do it. They actually have a rule about abating for one year.

    Now, let’s say you owed for 5 years and have finally paid off the main tax part. That’s much harder. (They really want their money.) If the amount of penalties and interest is substantial, it might be worth you doing an offer in compromise for the balance. Now, I’ve only gotten away with this once, but I’m telling you in case you want to try.

    The situation that I had worked on, the man had several years of back taxes that he had been paying on for quite some time. The debt was actually going to “drop off” (meaning that after 10 years, the IRS drops the debt. And they were going after the man like crazy. (He had been in a payment agreement and he had made three late payments – the payments were only one day late but the IRS decided to rescind his agreement and go after him.) I’m just giving you the back story there because this was an unusual offer in compromise

    Anyway, what we did was make an offer based not on what he could pay (he had been denied an offer years before because he made too much money) but we based the offer on the fact that the entire tax bill had been paid and that the case had stretched out so long. Plus, my client had been an ideal taxpayer ever since getting into a payment program. His taxes were always filed on time, he never had a balance due that wasn’t paid. He had a really good track record (after the initial tax problem.)

    So I’m telling you that in case that might be a solution for you. The IRS does not like to give an Offer in Compromise to people who can afford to pay the tax, but they have been known to make an exception if you’ve got a special circumstance. But I want to give you fair warning that an OIC is a long shot. Try the abatement first.

  275. Joe N. on Thu, 20th Nov 2014 5:04 pm
  276. Good afternoon I got a letter from the IRS for a levy in my accounts,I went to a tax person ,I was going to end up paying almost twice the amount of money,so what I did was a payment agreement with them,I’m doubtful, do they still going to levy my checking account,let me know please

    Thanks a lot.

  277. Jan Roberg on Sun, 7th Dec 2014 7:50 am
  278. Hi Joe N.,
    Since you set up an installment agreement with the IRS, as long as you are making your payments they are not going to levy your bank account.
    And for what it’s worth, I think that setting up your own installment agreement, instead of paying huge bucks to a tax company was the smartest thing you could have done. Some people really need help, but for most people, why would anyone pay more to the tax person than they owe the IRS when they’re still going to pay the IRS anyway? You did good.

  279. beth on Tue, 30th Dec 2014 4:34 pm
  280. Hello there, I have a payment arrangement set up with the irs. My first payment was due on Dec 28, 2014, today is Dec 30th, I completely flaked, I payed my payment online though as soon as I realized my error. My husband is very angry with me, he said that they will seize our bank account now? It’s only 2 days late. I’m currently on hold waiting to speak with someine to let them know I paid it and that I’m sorry. Thank you so much!

  281. Jan Roberg on Thu, 1st Jan 2015 2:14 pm
  282. Hi Beth,
    You’re going to be just fine. This is the first time that you were late with a payment. Usually, when the IRS sets up a payment agreement, you can be late three times before they terminate it. You were only late this one time and you already made the payment so you’re fine.
    Now, do be careful to not be late in the future. When you pay online, especially if you use EFTPS, you’ll want to pay at least a day in advance. If you’re mailing payments, you’ll want to mail it 10 days in advance because they count the payments on the date they are received, not mailed.
    Now, if you owe a lot, and you have a good payment agreement, they seems anxious to cut you off. I had a client how was one day–I’m not exaggerating here, only one day late, but he was late 3 times and they cancelled his agreement. But that was more because he was getting close to the 10 year statute of limitations where the IRS has to drop of the payments. I think they were really trying to prevent him from dropping off that debt.

    But you only had one late payment. No worries. Happy New Year!

  283. ian bennett on Thu, 8th Jan 2015 12:02 pm
  284. hello this is Ian my question is that I have a check that I need to deposit and get the money out so I can get an attorney to stop the levy but I am afraid if I deposit my money that’s when the levee will happen is there any way to avoid thatI would greatly appreciate any advice that you have for me thank you very very much

  285. Jan Roberg on Sun, 11th Jan 2015 5:27 pm
  286. Hi Ian,
    You could just cash the check without depositing it.

  287. rafael on Fri, 16th Jan 2015 10:51 am
  288. My girl put me on her account and now i got levied.. how does she get her name off the account now?? Please help

  289. Dave on Sat, 17th Jan 2015 6:52 pm
  290. I have received a notice to levy from Iowa IRS. I have some comments; the name on the letter is my name (minus any middle initial) and the address is correct. It says I owe over $5000. My problem is that I know I do not owe anything, I have always filed my taxes and never had any issues. After looking this notice over thoroughly I noticed the SSN on this letter is not even close to mine. I have a very common name so my assumption is that somewhere along the line a mistake was made and this was simply sent to the wrong person. Have you ever heard if this kind if thing before? I am very confused as to how they could make a mistake like this since I have lived at my current address for over a decade. And have been filing from this address the entire time. Shouldn’t someone have realized this? Shouldn’t my SSN be attached to this address currently? I am very frustrated by this mess and any advice would be greatly appreciated.


  291. Jan Roberg on Thu, 22nd Jan 2015 6:22 pm
  292. Hi Rafael,
    I need to understand something–you are the one being levied right? So your girl friend put your name on her bank account and now she needs to get her name off of it?

    Do you have access to her money? If you do, then the IRS won’t release the money to her. Even if you don’t, since you’re a signer on the account, they’re probably not going to release it.

    After the levy is over, she can shut down the account and start over without you on the new account.

  293. Jan Roberg on Thu, 22nd Jan 2015 6:55 pm
  294. Hi Dave,
    Yes, I’ve heard of that kind of stuff happening all the time! All the time! Now, the first thing to do is to call the Iowa revenue office and get it straightened out. It could simply be a mistake–oopies, it happens. But–it could be a case of identity theft. and that could be a nightmare. Either way, you don’t want to wait to get that fixed.
    But computer glitches do happen. I once helped a woman who received an IRS letter where everything was correct until it got the the part where it said she owed over $2 million dollars. I don’t know how it happened, but somehow her social security number got switched with a major corporation and all that company’s income went to her personal income tax. We got it fixed, but you can imagine the shock she got opening that letter.

  295. Roger on Sat, 24th Jan 2015 6:18 pm
  296. The IRS Put a levy on my Empty Bank account , for failure to file in 2012
    They say I owe them 600.00 , I just filed my taxes today and Have a decent amount
    of refund , My question is will they Take what is owed to them from this refund amount and release the levy and send me what is left or Do i have to take further action

  297. Jan Roberg on Sun, 25th Jan 2015 3:15 pm
  298. Hi Roger,
    I doubt the IRS will release the levy on your bank account now that the levy is in place. Part of it is timing and it’s all tied up in the computers. If your refund hits first, then the IRS will take the refund. But, since the levy is in place, it’s possible that they could take part of your refund and still take money from your bank account.
    Now–they’re not supposed to be able to take funds that go into your bank account after the levy is set–supposed to being the operative word. I’ve seen bankers make that mistake and turn funds over to the IRS when they weren’t supposed to So you’re better off staying on top of it.
    Another thing–if the IRS does manage to grab you money twice, I’ve also seen them turn the extra money they grab over to the state (if the state had a levy) so you really want to make sure you know who’s getting what.
    I think it’s worth your time making a phone call and following up with them so you know exactly what they’re up to.

  299. jeremy r on Mon, 16th Feb 2015 3:56 am
  300. Hello, can you tell me if someone else claimed my kids and they asked me if it was OK to deposit a chunk of the refund in my account to keep their boyfriend from finding out so I agreed even though all the money is theirs but I owe back taxes, can the IRS take that deposit even if its not my refund. it was not a levy I don’t believe the deposit was only partially made in my account, the account received only 700 of the 7,000???

  301. Tammy on Mon, 16th Feb 2015 4:15 am
  302. We received a CIVPEN letter stating that we didn’t send 1 qtr of 941, W2 or W3 in (for our business) and have diligently been trying to get it resolved. I had one agent tell me that the IRS would be levying my bank account but I have never received a formal letter stating that they have. Is there a way to find out if they have or not?

  303. Charlotte on Fri, 20th Feb 2015 2:46 pm
  304. Hi Jan: I need your help! I have not filed taxes since 2001/2002. I have worked full-time and been self-employed all this time. I know I have been remiss; it seems when taxes were due I didn’t have the money to pay. I didn’t realize that I could have filed even though I didn’t have the money to pay.
    3 months ago an RA asked me to file taxes for the years 2007-2013. Because I wasn’t working much due to severe back pain that will require surgery, I sent the agent a certified letter asking for more time to file them because of my injury and because I just don’t have the knowledge to file self-employment returns. I asked for a written reply from her but none was given.
    I was not able to get help because I have no money. Now the IRS has filed a lien and levied my bank account and has sent a levy to the company I freelance for.
    I have several questions: 1. The IRS filed returns for me and says I owe $100,000+ for the years 2002-2006 but I had several dependents (family) I supported through 2011. Can I file returns for 2002-2006 now and can the IRS collect on tax debts that are more than 10 years old?
    2. Can I contact the IRS directly and ask them to put me on “Not collectible at this time” status since I’m not working much and have little income or will I need to hire an attorney to do that? I don’t own a home or property. I currently make payments on a 2004 vehicle.
    3. The co. I work for owes me a couple of payments from work done last year. The IRS sent a levy but no invoices were due then. Will the IRS try to levy them again? I need that money to hire an attorney asap.
    I don’t want to contact the IRS directly if that will negatively impact my case.
    I appreciate any help you can give me.

  305. Confused Lynda on Sat, 28th Feb 2015 9:49 pm
  306. When we were married my X and I entered into an installment plan for 2005,2006 and 2007 taxes due to an audit. In short they considered my X business a hobby which generated taxes due. At one time It was over $25,000 and now it, with interest and penalties is about $15K, $11K is for 2006. 2005 was paid off in the plan. I have been making payments regularily, without fail. Out divorce decree states that we are to equally share the debt but I have been the one making those payments. Thus far the x has paid me $50.00 toward his share. I received a cp39 notice stating that a refund from an overpayment of 2013 taxes he filed was applied to the 2006 taxes due. But the notice states that the whole $11K is due in 12 days !!! Nothing is stated about the installment plan, Ironically today I mailed the payment due March 15th [because all of the installment payments are due on the 15th of the month]. Every month I have to take the previous month’s “invoice” and change the month because I never receive the “invoice” in time as I cut that check on the 1st of every month. Could this be just a notice that the $32.00 was applied and the installment plan is still in affect? The form does not look like if hase a space for mention of the payment plan. I never received any notice that they were terminating the plan. Plus I’ve never missed a payment, I’ve been religious about filing and paying taxes ever since. Plus the notice says nothing about the $3K+ owned [and part of the plan] for 2007. Is it customary for these cp39 notices to not mention the installment plan that is in affect and I will get the regular “invoice” reminder that my $220.00 installment payment is due on the 15th like I always do? Figures I get this notice on a Saturday and they are not there to answer calls.

  307. Jan Roberg on Sun, 1st Mar 2015 2:42 pm
  308. Ah Jeremy,
    Did you think that maybe the IRS thought it was fraud and held back the refund? Just sayin’.

  309. Jan Roberg on Sun, 1st Mar 2015 2:43 pm
  310. Hi Tammy,
    Call the IRS. Call your bank. I’m pretty sure the bank would tell you if you’ve been levied. But call, that’s the best way to know.

  311. Jan Roberg on Sun, 1st Mar 2015 2:47 pm
  312. Hi Charlotte,
    How much worse can it get? Contact the IRS. Tell the your story. Show them some good faith. When you don’t respond, they use stronger enticements, like a levy. Now they’ve got your attention. By all means call. Ask to be put on currently uncollectable. But you’re going to have to file those returns.
    Now, any levy that they’ve got open right now–you probably can’t stop. But by calling you could prevent future levies. And maybe you can buy yourself some time to amend those back tax returns. Good luck.

  313. Jan Roberg on Sun, 1st Mar 2015 2:52 pm
  314. Dear Confused Lynda,
    It’s worth making a phone call. If the notice says everything is due in 12 days–something’s wrong. You’re better off talking to them than guessing.

  315. Sirenia on Mon, 4th May 2015 12:01 pm
  316. My dad used to owe IRS 60K now we brought it down to 54K. We later got a notice saying we owe 13K from the Franchise tax board they’ve been wiping our bank accounts, ( they said state taxes due back in 09) this is the first we’ve of this! the person assigned to our case is very rude and demands the 13k up front. I now did ask my dad to keep his cash in a safe place (not the bank) he is a business owner and we report EVERYTHING to the IRS we by no means are able to pay this amount. What do we do? all of this is from 2009 where fraudulent toward my dads taxes. Its a nightmare ;(

  317. Jan Roberg on Sun, 10th May 2015 7:25 pm
  318. Hi Sirenia,
    It sounds like whatever tax issue your dad had back in 2009 with the IRS is now catching up with the state tax board. Usually, they’re a little faster than that, but not always.

    So–first issue is–does your dad really owe the tax? I can’t see the tax returns, my gut sorta says the a $13000 state tax bill is in line with a $60K federal bill. But that’s a super broad generalization. So, first you need to check if he really owes it. If not–you have to prove it. If he does–well then he’s going to need to do something.

    Some states will allow you to make a payment arrangement or even an offer in compromise–but not all of them. And the more the state is in debt–the less friendly they are about back taxes.

    If the collection agent is truly rude, you can try asking to speak with her supervisor (which usually will make her ruder but eventually she’ll have to get the supervisor.)

    I suggest that you get some professional help to work this out. Yes, it costs money, but it might be your best bet. Good luck.

  319. Michelle on Wed, 27th May 2015 12:04 am
  320. Hi Jan,

    I have been under employed for a few years after being laid off from my corporate job. My jobs now are mostly temporary and pay just above minimum wage. I have a wealthy friend who has been helping me pay my $1600/month rent, but in order to pay this, I have to deposit this cash into my bank account and pay it online. My apt does not take money orders or cash for rent payments.

    I owe 28k in taxes and would like to offer an OIC for 10k, but I’m concerned the IRS will find out about my friend paying my rent each month, which has not been included in my income on yearly taxes and I’m worried that this may look like tax evasion.

    My questions are:
    If an OIC is attempted, do I have to explain where the $1600 monthly deposit is coming from each month?

    Would it be better to fill out an installment plan request, and if so, do they look at banks accounts?

    I don’t have any assets, but a 4k car, and I owe 80k+ in defaulted student loans. Would it be better to attempt an OIC or play it safe and go for an installment plan, since it sounds like no financial statement needs to be filled out for that?

    Thanks for your time!

  321. Sheri on Thu, 18th Jun 2015 2:10 am
  322. This is in regards to a state levy. Unfortunately, my husband owes taxes & he and our son (age 20) have the same first name, middle initial & last name. A levy was recently put on our son’s bank account. (The necessary paperwork was faxed to CA franchise tax board) and the levy was lifted. My husband called the FTB & has made arrangements, but my SON is My concern!! Possibly, my husband was on his bank account when it was first opened, but I’m unsure. I know that when we checked husband’s credit a few mos ago, it has our son’s social security number listed (in addition to husband’s) as being associated w/him. The question is: How can we prevent this mistake from happening again? Does my son need to change his name and/or social sec #? Please help. My son would like to close the existing bank acct although the levy was lifted & open a new acct but is concerned this might happen again. Would it help to have his full middle name on a new bank account since he & his father have same middle initial BUT Different middle names? (I’m NOT happy w/the husband, but I need a different forum for that)!

  323. Jan Roberg on Sun, 21st Jun 2015 1:21 pm
  324. Hi Sheri,
    My best guess is that your husband was still listed on your son’s bank account and that’s why the state tax board levied the account.
    I’m thinking that your son doesn’t need to change his name or social security number, just make sure that his father is not listed on his account any more.
    All he needs to do is just remove his father from his current account, but if it makes him happy to open a new one (just to be safe) he can.
    And for what it’s worth, this is a really common problem for families with a parent on the child’s bank account or vice versa. It’s not the name, it’s the fact that your husband is on your son’s account that’s the problem.

  325. Jan Roberg on Sun, 21st Jun 2015 1:35 pm
  326. Hi Michelle,
    When you do an offer in compromise one of the issues is what are your housing expenses. Since your friend pays your rent–that’s taking $1400 a month out of what you’re spending which is something the IRS looks at when doing an offer.
    So, my answer is, I’m not sure. Have you tried to IRS Offer in Compromise Pre-Qualifier? Here’s a link:

    It’s a pretty good tool. And by answering the questions honestly, it will give you a really good indication of whether or not you stand a chance at an offer.

    If the offer won’t work, the IRS would probably accept an installment agreement from you for $390 a month. I’m thinking that under your current circumstances, you can’t afford that–in which case you’d need to provide the IRS with financial statements anyway for a lower payment amount.

    So, it looks to me like you’ve be explaining that $1600 a month either way. Now here’s one issue–$1600 a month amounts to over $14,000 – which means that your friend could be required to file a gift tax return. You might have an issue there. A gift isn’t taxable to you, so you wouldn’t be required to report it for your taxes, but it does seem like a lot of money for a “friend” just to fork over.
    Bottom line is – I think you’re going to be supplying bank statements whether you do an offer or an installment agreement. And, you’ll need to be able to explain where that money came from (unless you’re agreeing to the $390 per month.)

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