Most of the woes associated with the IRS involve money. If you are audited, the most probable outcome is that you will owe more money to the IRS. In the worst case scenarios, an audit results in your owing a lot more money. But you almost never face criminal charges.
An IRS criminal investigation is an entirely different ball of wax. The IRS pursues about 3,000 prosecutions each year for tax fraud and tax evasion. If the IRS launches a criminal investigation against you, you not only face a potentially substantial tax bill, but also possible jail time. One of your first moves should be to obtain the services of a skilled, experienced attorney who specializes in tax law.
The Knock at the Door
Your first encounter with the criminal investigation unit of the IRS may involve a knock on your door, followed by an intimidating encounter with two or more agents dressed much like K and J from the Men in Black movies. By the time this encounter takes place, the IRS has completed several steps of its investigation process and is convinced that the case against you is solid. Your best move under these circumstances is to say absolutely nothing.
Areas of Potential Criminal Prosecution
The IRS website lists the following areas of possible criminal prosecution. Some areas of criminal prosecution such as abusive tax schemes and nonfiler enforcement are more likely to apply to individuals. Others, such as money laundering and employment tax evasion, are more likely to be committed by corporations and criminal operations.
Abusive Return Preparers
Abusive Tax Schemes
Bankruptcy Fraud
Corporate Fraud
Employment Tax Evasion
Financial Institution Fraud
Gaming Related Fraud
General Tax Fraud
Healthcare Fraud
Insurance Fraud
Money Laundering
Mortgage and Real Estate Fraud
Narcotics Related Financial Fraud
Nonfiler Enforcement
Public Corruption
Questionable Tax Refunds
How Criminal Investigations Are Initiated
Those stories you read about neighbors ratting each other out to the IRS? That actually does happen. The IRS is happy to accept tips about possible tax fraud or tax evasion from family members and associates. A revenue agent or revenue collection officer may also initiate a criminal tax investigation if something about your return seems fishy. A U.S. Attorney or even your local law enforcement department may also provide tips to the IRS about possible fraudulent or criminal tax activity. Social media is also another resource.
Primary Investigation
Of course, the IRS isn’t supposed to go off half-cocked based on an accusation made by someone with a long-standing grudge. Instead, any tips or information is subject to what the IRS calls a primary investigation. The agent makes an initial judgment on whether to proceed with further investigation. If the decision is in favor of pursing criminal charges, the tax agent’s supervisor has the opportunity to sign off on the investigation or stop it in its tracks. If the supervisor gives the go-ahead, then the case is brought to the special agent in charge – the head of the office. That person makes the determination of whether to go ahead with a “subject criminal investigation” based on one or more of the categories listed above.
Criminal Investigation
Once the IRS has obtained the go-ahead, the actual criminal investigation proceeds much like you think it would. The IRS gathers documents and affidavits from third parties, including your family, friends and professional associates to support its case. Other forms of investigation include search warrants, subpoenas of bank records and other financial data and covert surveillance.
Recommendations for Prosecution
After the investigation phase of the process is complete, the IRS special agent and his or her supervisor review the evidence that has been gathered. A determination is made whether to “discontinue” the case or proceed with prosecution. If the decision is made to prosecute, the special agent prepares a report which is reviewed by each of the following four IRS officers, in order:
The supervisory special agent, aka the front line supervisor for the special agent
Centralized Case Review – a criminal investigation review team
The Criminal Investigation (CI) assistant special agent in charge
The CI special agent in charge
If the CI special agent in charge gives the go-ahead to prosecute, the recommendation is forwarded to either of two final levels of review. Just as with any of the earlier stages of investigation, the IRS may decide that there is insufficient evidence to proceed with an actual prosecution. But once an investigation clears one of the two stages listed below, you are destined to receive that ominous knock on your door.
The Department of Justice, Tax Division (for tax investigations)
The United States Attorney (for all other criminal financial investigations)
Guilty or Not Guilty
You might have gathered by now that the IRS is meticulous about pursuing criminal cases against alleged tax cheats, and you would be right. But that does not mean that mistakes never happen or that actual prosecution is inevitable. You have the right to seek a conference with IRS agents at each stage of the process — if you are actually aware that the IRS is pursuing prosecution against you. You also have the right to request dismissal of the case either before or after a grand jury indictment, or to appeal a conviction.
If the IRS Has You in Its Sights
If you know that the IRS will find tax fraud or tax evasion, your best bet is to come clean. If you do so before a prosecution is underway, you can often avoid the criminal process altogether. The IRS allows taxpayers to make voluntary disclosures of unreported income or other tax obligations. The procedures vary according to whether your unlawful tax conduct involves domestic or international maneuvers. Your attorney can provide the best advice on whether – and how to make a voluntary disclosure.
Partnerships are a popular business structure for entrepreneurs looking to combine resources, expertise, and share profits. However, the taxation of partnerships can be complex, as the partnership itself isn’t taxed like a corporation. Instead, partnerships are subject to “pass-through” taxation, where the profits and losses pass through to individual partners. This guide explores how partnerships are taxed, the reporting requirements, and the key factors that partners should be aware of.
Understanding Pass-Through Taxation
Partnerships are considered “pass-through” entities, meaning they do not pay income tax at the business level. Instead, the income or loss is passed through to the individual partners. The partners then report their share of the profits or losses on their personal tax returns. This structure avoids double taxation (taxing both the entity and the owners), which is a feature of corporate taxation.
Each partner’s share of the partnership’s income, deductions, and credits is determined by the partnership agreement. If no partnership agreement exists, the default rules provided by state law. For example, if Partner A has 50% ownership and Partner B has 50% ownership, they will each claim 50% of the company’s profits or losses. However, if Partner A has 70% ownership, they would claim 70% of the company’s profits or losses, while Partner B would claim the remaining 30%.
The Role of Schedule K-1
For tax purposes, partnerships must file an informational return, Form 1065, U.S. Return of Partnership Income, with the IRS each year. This return is due by the 15th day of the third month following the date the tax year ended for the business. For example, if your business follows a calendar year (January 1 – December 31), the due date would be March 15. However, if your company has a fiscal year of July 1 – June 30, the due date would be September 15.
Form 1065 reports the partnership’s total income, deductions, and other tax-related information. Along with Form 1065, the partnership provides each partner with a Schedule K-1, which details the partner’s share of the partnership’s taxable income, deductions, and credits. Schedule K-1 is due by March 15th for S-corps and LLCs, and by April 15th for trusts and estates. Alternatively, it is due on the 15th day of the third month after the company’s tax year ends. Each partner uses the K-1 to report their share of the partnership’s tax attributes on their individual tax return (Form 1040).
How Partnerships Distribute Income and Deductions
In a partnership, the distribution of income and deductions is typically governed by the terms outlined in the partnership agreement. This agreement specifies how the partnership’s profits and losses are allocated among the partners. If no partnership agreement exists, or if it doesn’t specify how income and deductions are divided, the default rule under most state laws is that profits and losses will be split equally among the partners, regardless of their contributions.
The income distributed to each partner is subject to taxation. This is true whether or not the partnership distributes the profits to the partners in cash. This means that even if the partnership retains its profits in the business, partners must still pay taxes on their share of the income. In addition to reporting income, the Schedule K-1 may include other items that affect a partner’s tax liability, such as:
A key aspect of partnership taxation is that general partners are considered self-employed for tax purposes. This means they must pay self-employment tax on their share of the partnership’s income. The self-employment tax rate is 15.3%, which includes both the Social Security (12.4%) and Medicare (2.9%) portions.
Limited partners, however, generally are not subject to self-employment tax on their share of the partnership’s income unless they are actively involved in managing the business. The income allocated to limited partners is typically passive income and may include dividends, interest, capital gains, or other investment-related earnings. Despite this exemption, limited partners still pay income taxes on their share of the partnership’s profits, which is reported on their personal tax return using Schedule K-1. This income is usually taxed at the ordinary income rate unless it qualifies for capital gains treatment or other tax-favorable categories.
Basis in a Partnership
A partner’s basis in the partnership refers to the amount of their investment in the business and is important for determining the taxability of distributions and gain or loss on the sale of a partnership interest. In simpler terms, think of it as your “ownership value.” Here’s how basis works in simple terms:
Initial Investment: When you first put money into a partnership, that amount is your starting basis. For example, if you invest $10,000 into a business, your basis is $10,000.
Adjustments Over Time: As time goes on, your basis can change. It can increase if you put more money into the business or if the business makes profits that are allocated to you. It can also decrease if you take money out (distributions) or if the business loses money that is passed on to you.
Your basis helps the IRS figure out how much tax you’ll owe when you take money out or sell your interest in the business. For example, if you sell your share for more than your basis, you’ll have a taxable gain. However, if you take money out of the business, it’s usually not taxable as long as it’s less than your basis.
Partnership Losses
Partnerships can also pass through losses to their partners. These losses can offset the partners’ other income on their personal tax returns. However, the ability to deduct partnership losses is subject to limitations such as:
Basis Limitations
Losses can only be deducted to the extent of the partner’s adjusted basis in the partnership. For example, let’s say you invest $10,000 in a partnership, making your basis $10,000. The partnership incurs a $15,000 loss for the year and your share of that loss is $12,000. Since your basis is only $10,000, you can only deduct $10,000 of the loss this year. The remaining $2,000 cannot be deducted now but can be carried forward to future years, when your basis increases (e.g., through additional investment or profits).
At-Risk Limitations
Partners can only deduct losses to the extent they are financially at risk for the partnership. This usually means the amount of money or property you personally invested and any amounts you’ve personally guaranteed. You invest $10,000 in a real estate partnership, but you also personally guarantee a $20,000 loan the partnership takes out. This puts your total at-risk amount at $30,000. The partnership then generates a $35,000 loss for the year, and your share of the loss is $25,000. You can deduct up to $30,000 (your at-risk amount) even though the partnership loss exceeds it. The remaining $5,000 loss can’t be deducted and is carried forward to future years when your at-risk amount increases.
Passive Activity Loss Limitations
Losses from passive activities, such as a rental business, can generally only offset income from other passive activities, not wages or other earned income. For example, say you invest in a rental property that generates a $10,000 loss for the year. You also have a full-time job, earning $60,000 in wages. Under the passive activity loss rules, you can’t use the $10,000 rental loss to reduce your $60,000 in wages because the rental property is a passive activity. However, if you also have $8,000 in passive income from another rental property or business, you can use part of the $10,000 loss to offset that passive income. The remaining $2,000 loss can be carried forward to future years when you have more passive income.
Partnership Tax Filing Requirements
While partnerships do not pay income taxes directly, they still have several important filing responsibilities. The first of which is Form 1065, U.S. Return of Partnership Income. Again, this informational return reports the partnership’s total income and deductions for the year. Next, the partnership will need to issue Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc. to each partner. This will provide the necessary information for their individual tax returns. It’s also crucial to stay on top of state tax filings. Some states require partnerships to file their own returns or pay entity-level taxes. Additionally, if the partnership operates in multiple states, it may be subject to tax filings in each of those states.
Tax Help for Partnerships
The taxation of partnerships can be complex. Understanding how pass-through taxation works, the role of Schedule K-1, and the treatment of self-employment taxes, basis, and losses is crucial for partners. By staying informed and working with tax professionals, partnerships can navigate these rules effectively and ensure they comply with their federal and state tax obligations. Optima Tax Relief is the nation’s leading tax resolution firm with over $3 billion in resolved tax liabilities.
Understanding worker classification is crucial for both employers and workers, as it directly affects tax obligations and benefits. The way a worker is classified—whether as an employee or an independent contractor—determines who is responsible for various tax payments, what deductions are available, and how the worker must report income to the IRS. This article will explore the implications of worker classification on taxes and the criteria used to differentiate between employees and independent contractors.
Employee vs. Independent Contractor: The Basics
The IRS recognizes two primary worker classifications: employees and independent contractors. Workers classified as employees have taxes withheld from their paychecks, including federal income tax, Social Security, and Medicare taxes. Employers also pay a share of Social Security and Medicare taxes, and may provide additional benefits such as health insurance, retirement plans, and workers’ compensation. Independent contractors, on the other hand, are self-employed individuals who typically provide services to multiple clients or businesses. Unlike employees, they do not have taxes withheld from their payments. Instead, they are responsible for calculating and paying their own income taxes, self-employment tax (which covers both the employee and employer portions of Social Security and Medicare taxes), and other applicable taxes.
How the IRS Determines Worker Classification
The IRS uses three main categories to determine whether a worker is an employee or an independent contractor.
Behavioral Control: Does the company control or have the right to control what the worker does and how the worker does their job? Employees are typically subject to more detailed instructions and training, while independent contractors have more control over how they complete their work.
Financial Control: Does the company control the business aspects of the worker’s job? Independent contractors often have a significant investment in their work, pay for their own business expenses, and have the opportunity for profit or loss.
Relationship of the Parties: Are there written contracts or employee-type benefits (e.g., pension plan, insurance, vacation pay)? The presence of such benefits often indicates an employer-employee relationship. The permanency of the relationship and the extent to which the services performed are a key aspect of the regular business of the company are also considered.
Consequences of Misclassification
Misclassifying employees as independent contractors can result in significant tax liabilities for employers, including:
Liability for unpaid payroll taxes.
Penalties and interest on unpaid taxes.
Possible fines for violating labor laws.
For workers, misclassification can lead to unexpected tax bills, loss of unemployment benefits, and denial of workers’ compensation. That said, it’s essential to make sure you classify correctly the first time around. However, if a business realizes that it has misclassified workers, it can correct the situation by reclassifying them correctly and paying any past due taxes. The IRS also offers the Voluntary Classification Settlement Program (VCSP), allowing eligible businesses to reclassify workers as employees for future tax periods and pay a reduced amount of past employment taxes.
Tax Implications for Employees
For employees, the tax process is relatively straightforward. Employers withhold federal income tax, Social Security, and Medicare taxes from employees’ wages. The employer also contributes to the employee’s Social Security and Medicare taxes, effectively covering half of these taxes on behalf of the employee. Employees receive a W-2 form at the end of the year, which summarizes their earnings and the taxes withheld. This information is used to file their annual income tax return.
Tax Benefits
Paying taxes as an employee has its perks, the biggest of being that taxes are automatically withheld. This greatly simplifies tax compliance. Employees are also eligible for employer-provided benefits like health insurance, retirement plans, and paid leave. Another major benefit is having potential eligibility for unemployment benefits and workers’ compensation.
Tax Deductions
Employees likely will not have as many tax deductions as independent contractors. However, there are some key tax deductions they can keep in mind. For example, employees can deduct 401(k) contributions. You can deduct up to $23,000 in contributions, or up to $30,500 if you are aged 50 and older. This also applies to 403(b), most 457 plans, and Thrift Savings Plans. Roth 401(k) contributions are not eligible for tax deductions.
IRAs follow a different set of rules. Contributions to a Traditional IRA can be tax-deductible. However, it depends on several factors, such as your income, tax filing status, and whether you (or your spouse, if you’re married) are covered by a retirement plan at work. For example, if you’re covered by a retirement plan at work, and are single with a MAGI of $77,000 or less in 2024, you can take a full deduction up to the contribution limit of $7,000. However, if your MAGI increased to $87,000 or more, you’d be ineligible for a deduction.
Tax Implications for Independent Contractors
Independent contractors have more tax-related responsibilities than employees. They must calculate and pay their own taxes, including the self-employment tax, which covers both the employee’s and employer’s portions of Social Security and Medicare taxes. They receive a 1099-NEC form from clients who paid them $600 or more during the year, but they are responsible for tracking all income, even if they do not receive a 1099 form for smaller payments.
Tax Benefits
While being your own boss comes with greater responsibilities, it also has its perks. Besides the obvious perk of greater control over work hours, methods, and clients, there is also the ability to claim a wider range of business expenses, reducing taxable income. You also have more control over the timing of your income and expenses. For example, if you’re close to year-end, you might delay billing a client until the next year, which can push taxable income into a later tax year. Alternatively, if you need to reduce your tax liability in the current year, you can make business purchases or pay for expenses in advance to claim the deduction immediately.
Tax Deductions
Independent contractors can deduct a wide variety of business expenses to significantly reduce taxable income. Some of the most common expenses include:
Home Office Deduction
If you use part of your home exclusively and regularly for business, you can deduct a portion of your home-related expenses, such as rent, mortgage interest, utilities, and insurance. The IRS offers a simplified home office deduction of $5 per square foot, up to 300 square feet, or you can calculate your actual expenses.
Supplies and Equipment
Any supplies, materials, or equipment you purchase for your business are tax-deductible. This includes computers, printers, software, and office furniture.
Vehicle and Travel Expenses
If you use your personal vehicle for business purposes, you can deduct the business-related mileage or a percentage of actual vehicle expenses, such as fuel, maintenance, and insurance. You can also deduct travel expenses for business trips, including airfare, lodging, and meals.
Marketing and Advertising
Costs related to promoting your business, such as website development, social media advertising, and business cards, are deductible.
Professional Services
Fees paid to accountants, lawyers, or other professionals that help you run your business are deductible.
Continuing Education and Training
Expenses for education or training courses that improve or maintain your skills as an independent contractor are tax-deductible.
Self-employed individuals can also deduct half of their self-employment tax as an adjustment to income on their tax return. If you’re self-employed and pay for your own health insurance, you may be eligible to deduct the cost of your premiums. Independent contractors may also benefit from the Qualified Business Income (QBI) deduction. This allows you to deduct up to 20% of your qualified business income. Insurance premiums, such as liability insurance or bonding costs required to run your business, are fully deductible as business expenses. Independent contractors can deduct the full cost of certain business equipment in the year of purchase using Section 179 depreciation, rather than spreading out the deduction over several years. The list goes on and on, and it could be widely beneficial to speak to a knowledgeable tax professional about what you are eligible for.
Tax Help for Those Who Owe
Worker classification significantly affects how taxes are handled, who is responsible for paying them, and the availability of certain benefits. Employers must carefully assess their relationships with workers to ensure proper classification, while workers should understand their status and its tax implications. Proper classification not only ensures compliance with tax laws but also protects the rights and benefits of both workers and employers. Remember, if ever unsure, it’s best to consult a tax professional. Optima Tax Relief has over a decade of experience helping taxpayers with tough tax situations.
We often hear that the tax professionals qualified to represent you before the IRS are CPAs, tax attorneys, and enrolled agents. While the first two roles are more well-known, many are still confused about what exactly an enrolled agent is. An Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in the field of taxation. Enrolled agents are empowered by the U.S. Department of the Treasury to represent taxpayers before the IRS for audits, collections, and appeals. They are the only taxpayer representatives who receive their right to practice from the federal government. Here is an overview of enrolled agents, including what it takes to become one, how they differ from CPAs and tax attorneys, and the advantages of hiring one for help with the IRS.
The Role and Responsibilities of an Enrolled Agent
Enrolled agents are equipped to handle a wide range of tax matters. Some of their key responsibilities include the following.
Tax Preparation
EAs are tax experts who assist individuals, businesses, and other entities with preparing and filing their tax returns. They can navigate complex tax situations and ensure compliance with tax laws.
Tax Planning
EAs help clients make strategic decisions to minimize their tax liability. This may involve advising on investment strategies, retirement planning, or business decisions that have tax implications.
Representation
One of the primary roles of an enrolled agent is to represent taxpayers before the IRS. EAs can advocate on behalf of their clients during audits, appeals, and collections. They can also negotiate with the IRS to resolve issues such as back taxes or penalties.
Compliance
EAs help clients understand their tax obligations and ensure they comply with federal and state tax laws. This includes advising on record-keeping, reporting requirements, and other tax-related matters.
How Does One Become an Enrolled Agent?
Clearly, enrolled agents carry a lot of responsibility and authority. That said, it’s important to note that there are two primary paths to becoming an enrolled agent.
Pass the Special Enrollment Examination (SEE): This is a comprehensive three-part exam that covers individual and business tax laws, IRS practices and procedures, and various representation issues. The SEE is designed to test a candidate’s knowledge of the Internal Revenue Code and its application to various tax scenarios.
IRS Experience: Individuals who have worked for the IRS for at least five years in a position that regularly required the interpretation and application of the tax code can also become enrolled agents. Their IRS experience serves as evidence of their knowledge and expertise in the field.
After becoming an EA, individuals must complete continuing education courses to maintain their status. This requirement ensures that EAs stay up-to-date with the ever-changing tax laws and regulations.
How Do Enrolled Agents Differ from CPAs and Tax Attorneys?
While enrolled agents, Certified Public Accountants (CPAs), and tax attorneys can all represent taxpayers before the IRS, there are key differences in their training and areas of expertise. Enrolled agents specialize in taxation and have a deep understanding of the tax code. Their primary focus is on tax preparation, planning, and representation. CPAs are accountants who have passed a state licensing examination. They offer a broader range of services, including auditing, accounting, and financial planning, in addition to tax services. Not all CPAs specialize in taxation, but those who do often provide similar services to EAs. Tax attorneys are lawyers who specialize in tax law. They are well-versed in legal issues related to taxes, such as tax disputes, litigation, and estate planning. Tax attorneys are often sought for complex legal matters and can represent clients in tax court.
The Advantages of Hiring an Enrolled Agent
There are several benefits to working with an enrolled agent.
Tax Expertise: EAs have comprehensive knowledge of tax laws and are required to stay current with the latest changes, making them well-equipped to handle complex tax issues.
IRS Representation: EAs have the authority to represent taxpayers before the IRS, providing a layer of protection and advocacy during audits and disputes.
Nationwide Practice Rights: Unlike CPAs and attorneys who may be limited to practice in specific states, EAs are federally authorized and can practice in any state, providing flexibility for clients with multi-state or national tax concerns.
Tax Help for Those Dealing with the IRS
Enrolled agents are highly qualified tax professionals who specialize in taxation and have the unique authority to represent taxpayers before the IRS. Whether you need assistance with tax preparation, planning, or navigating an audit, an EA can provide expert guidance and representation tailored to your specific needs. Optima Tax Relief has a team of knowledgeable tax professionals, including enrolled agents and tax attorneys, with experience helping taxpayers with tough tax situations.
When dealing with unpaid taxes, one of the most significant and immediate consequences can be an IRS bank levy. This action allows the IRS to legally seize funds directly from your bank account to satisfy outstanding tax debts. Understanding how an IRS bank levy works, how it can be avoided, and the steps to take if you’re facing one is crucial for anyone in financial trouble with the IRS.
How Does an IRS Bank Levy Work?
An IRS bank levy is a legal mechanism the IRS uses to collect unpaid taxes. Unlike a wage garnishment, which takes money from your paycheck over time, a bank levy can seize the full balance in your account up to the amount of tax owed.
IRS Bank Levy Process
IRS Notice: Before placing a bank levy, the IRS must send you a series of notices. The most critical is the Final Notice of Intent to Levy and Notice of Your Right to a Hearing (also known as Letter 1058 or LT11). This notice gives you 30 days to either pay your debt or arrange an alternative.
Bank Hold Period: Once the levy is issued, your bank will place a hold on the levied amount in your account for 21 days. This hold gives you time to resolve the issue before the funds are transferred to the IRS.
Seizure of Funds: If the debt isn’t settled within those 21 days, the bank will release the funds to the IRS. The levy continues until the full amount owed is collected or the levy is lifted.
What Types of Accounts Can Be Levied?
The IRS can levy funds from several types of financial accounts, including:
Checking accounts
Savings accounts
Money market accounts
Investment accounts (with special rules)
However, the levy only applies to funds available at the time the bank processes the levy. Future deposits are not immediately subject to the same levy unless the IRS issues a new one.
Steps to Take If You’re Facing a Bank Levy
If you’ve received a Final Notice of Intent to Levy, don’t ignore it. Acting quickly can help prevent the levy or minimize its effects. Remember, you have the right to request a Collection Due Process hearing within 30 days of receiving the final notice. This can temporarily stop the levy while the IRS reviews your case. Apart from this, the most straightforward way to avoid a levy is to pay the amount owed in full. If you can’t pay the entire debt, consider other options like an Installment Agreement or Offer in Compromise. If a levy would cause you significant financial hardship, you can request that the IRS release the levy. You’ll need to show that the levy prevents you from meeting basic living expenses. Navigating an IRS bank levy can be complex. A tax professional can help you negotiate with the IRS, request a hearing, or explore settlement options.
How to Avoid a Bank Levy in the Future
To avoid facing an IRS bank levy, it’s important to stay on top of your tax obligations and address issues promptly. Here are some tips:
File on Time: Even if you can’t pay your taxes, file your return on time. The IRS is more likely to work with you if you file, even if you owe.
Communicate with the IRS: If you receive notices about unpaid taxes, respond promptly. You may be able to set up a payment plan or find other solutions before enforcement actions like a bank levy are taken.
Stay Current: If you’re already on an installment plan or settlement agreement, make sure you stay current with your payments. Falling behind on these arrangements can trigger a levy.
Tax Help for Those Being Levied by the IRS
An IRS bank levy can be a serious financial disruption, but it’s not inevitable if you act early. Understanding the process and knowing your options can help you prevent or address a levy before it causes long-term damage. If you’re facing a levy, consider seeking professional assistance to navigate the process and explore potential relief options. Optima Tax Relief is the nation’s leading tax resolution firm with over a decade of experience helping taxpayers with tough tax situations.
