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No matter how big or small your tax debt, no one wants the position to degrade to the point where you are subject to a bank duty. This tool is an absolute last resort that not only puts you in a nightmarish world where you don’t have control over your own resources, but it also costs the IRS a lot of money and time, as well. There are some ways to get out of a levy of this sort, but the easiest thing to do is to evade letting things get this far to begin with. Here are a few tips you can use to ensure that your tax site doesn’t turn into a bank levy location.

First of all, as soon as you become concious you have an outstanding tax bill from the IRS, contact them and talk to them about what your options are. In almost every case, a bank toll happens because a person refuses to speak with the IRS. They think if they pay no attention to the condition, it will go away. It turns into a battle of egos between one party that is just trying to do their jobs and another who feels that they are being unjustly prosecuted. Even if you do feel that way, it is better to pay what you owe and then fight the system, rather than do it the other way around.

Next, ask if you qualify for a payment training or an extended payment training of some kind. A payment training will usually take your total tax burden and divide it up into 12 equal monthly payments. In some status, the IRS may suggest you a longer payment plan, but commonly speaking, they want this year’s tax debt paid off before you are required to start paying for the next year.

If a payment training just isn’t going to fit into your monetary picture, believe asking for an present in compromise. The suggest in compromise program has been around for a very long time, but many fiscal writers treat it as if it is a brand new invention. In precision, only a handful of people will be accepted for a compromise, so don’t necessarily get your hopes up. The first kind of compromise is simply an helplessness to pay your debt. The IRS will analyze your complete economic picture and determine how much they can really wait for you to pay and then adjust your total tax bill to that number. The second kind of recommend has to do with possible errors on your tax forms that may have increased your tax bill accidentally. A final type of propose allows you to pay a single lump sum payment that the IRS will think to be “close enough” to your total tax bill.

Needless to say, the IRS doesn’t hand out these offers like free candy; you are going to have to show that you qualify. One benefit, nonetheless, during the year-plus long processing for an bid, the bank tariff will immediately be lifted.

 

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

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