D. Financial and Tax Services

Day: August 10, 2023

  • Check Your IRS Balance

    Check Your IRS Balance

    Are you worried about owing money to the IRS? It can be a stressful experience, but it’s important to take the necessary steps. If you’re wondering if you owe the IRS, there are 3 Ways To Check Your IRS Balance.

    1. Check your IRS online account

    The best way to check your IRS balance is to create an IRS online account. This will allow you to view your tax records, make payments, and see the amount you owe. To create an account, you’ll need your Social Security number, date of birth, and mailing address.

    2. Review your tax returns

    If you don’t have an IRS online account, you can also review your previous tax returns to see if you owe any money. Look for any notices from the IRS that you may have received.

    3. Contact the IRS

    If you’re still not sure whether you owe the IRS, you can call them at 1-800-829-1040. Be prepared to provide your Social Security number and date of birth.

    Here are some other ways to find out if you owe the IRS:

    • Check your credit report. Your credit report may show a tax lien or levy, which are both signs that you owe the IRS.
    • Use a tax preparation software program. Many tax preparation software programs can check your IRS balance for you.
    • Hire a tax professional. A tax professional can help you review your tax records and determine if you owe the IRS.

    If you do owe the IRS, it’s important to take action right away. The IRS can charge interest and penalties on unpaid taxes, and they can also take steps to collect the money you owe, such as garnishing your wages or seizing your assets.

    Here are some options for paying your IRS debt:

    • Pay in full. If you can afford it, the best way to pay your IRS debt is in full. This will stop the interest and penalties from adding up.
    • Set up a payment plan. If you can’t afford to pay in full, you can set up a payment plan with the IRS. This will allow you to pay your debt over time.
    • Request an offer in compromise. An offer in compromise is an agreement between you and the IRS to settle your debt for less than the full amount.

    No matter what you do, don’t ignore the IRS. If you owe money, it’s important to contact them and work out a solution.

    Other things you can do:

    1. Review your tax returns for the past few years. Check for any errors or discrepancies that could lead to owing money to the IRS. If you’re unsure about how to read your returns, consider consulting with a tax professional.
    2. Another important measure is to check if you received any notices or letters from the IRS pertaining to your tax returns. They may have notified you about missing information or outstanding taxes that you owe.
    3. Visit the IRS website and select the “Get Transcript” option. This will allow you to view a summary of your tax account, including any outstanding balances. If you don’t have an online account, you can also request a transcript by mail or by phone. If you do have a balance, don’t panic! The IRS offers various payment options, including installment plans, settlement agreements, and hardship relief. However, it’s essential to address the situation promptly and accurately. The IRS can take severe measures such as seizing your assets and garnishing wages if left unresolved.

    It’s important to address any outstanding tax debt as soon as possible to avoid penalties and interest charges. If you’re having trouble paying your tax bill, consider reaching out to a tax professional for advice.

    Ultimately, being proactive about checking and addressing any tax debt can save you a lot of stress and money in the long run.

    In conclusion, stay informed and proactive. Regularly check your tax records, correspondences, and address the issue with the IRS as soon as possible. It can save you from potential financial hardships and legal troubles. If you feel overwhelmed, call us. We’re here to help.

  • IRS Tax Levy

    IRS Tax Levy

    What Is an IRS Tax Levy and How to Stop One

    An IRS tax levy is a legal action that allows the IRS to seize your wages, bank accounts, property, and other assets when you have unpaid tax debt. Before a levy occurs, the IRS sends a Final Notice of Intent to Levy, giving you 30 days to respond. Acting quickly can help you stop the levy, protect your income, and explore tax relief options such as installment agreements, Offers in Compromise, or hardship status.

    What Is an IRS Tax Levy?

    An IRS tax levy is one of the most serious enforcement actions the Internal Revenue Service can take when a taxpayer fails to resolve outstanding tax debt. Unlike a lien—which is simply a claim against your property—a levy is the actual seizure of your assets. This can include bank accounts, wages, real estate, vehicles, business income, retirement funds, and other valuable property.

    When the IRS initiates a levy, it is exercising its legal authority to forcibly collect the taxes you owe.

    Why the IRS Issues a Levy

    Before a levy occurs, the IRS typically sends a series of notices, including a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. If you have ignored earlier letters or have not made arrangements to resolve your tax balance, this final notice gives you 30 days to take action. If you do nothing, the IRS can move forward with seizing your assets without further warning.

    What the IRS Can Seize During a Levy

    The IRS has broad authority to take:

    • Bank account funds
    • Wages and salary
    • Social Security benefits
    • Accounts receivable
    • Business income
    • Real estate and vehicles
    • Retirement accounts (in some cases)

    A levy can create immediate financial hardship, making it difficult to pay bills, buy groceries, or maintain basic living expenses.

    HOW A BANK LEVY WORKS

    A bank levy begins when the IRS sends a legal order to your financial institution. The bank must freeze the funds in your account for 21 days. After that period, the IRS can seize the money and apply it to your tax debt.

    During the 21‑day window, you still have time to act — but once the funds are taken, they are gone.

    How Much of Your Wages the IRS Can Take

    A wage levy (also called wage garnishment) allows the IRS to take a significant portion of your paycheck. In many cases, the IRS can seize up to 70% of your wages, depending on your filing status and allowable exemptions.

    This can make it nearly impossible to keep up with rent, utilities, food, and other essential expenses.

    What To Do If You Receive a Final Notice of Intent to Levy

    If you receive a Final Notice, do not ignore it. You still have time to stop the levy, but the clock is ticking.

    Your options include:

    • Contacting a tax professional
    • Requesting a Collection Due Process (CDP) hearing
    • Entering into a payment arrangement
    • Demonstrating financial hardship
    • Submitting documentation to resolve the issue

    Taking action quickly is the key to protecting your income and assets.

    IRS Tax Relief Options to Stop or Remove a Levy

    • Installment Agreements– Set up a monthly payment plan to pay down your balance over time.

    • Offer in Compromise– Settle your tax debt for less than the full amount owed if you qualify.

    • Currently Not Collectible Status– Temporarily pause IRS collection efforts due to financial hardship.

    • Penalty Abatement– Reduce or remove certain IRS penalties if you meet eligibility criteria.

    When to Seek Professional Help

    IRS levies are time‑sensitive and can escalate quickly. If you’re unsure what to do, or if the IRS has already taken your wages or bank funds, it’s wise to seek professional guidance.

    You can reach out through the Contact to get personalized support and explore your options.

    Taking action quickly can prevent further financial damage and help you regain control of your situation. Ignoring the IRS will only escalate the problem, potentially leading to additional levies, liens, or legal action. DFATS provides experienced, compassionate support to help taxpayers navigate IRS enforcement and find the best path forward.

    IRS Tax Levy FAQ

    Q1: How long do I have before the IRS issues a levy? You have 30 days from the date on your Final Notice of Intent to Levy to take action, request a hearing, or set up a payment arrangement.

    Q2: Can the IRS take all the money in my bank account? The IRS can freeze your bank account for 21 days and then seize the available funds up to the amount you owe.

    Q3: How much of my paycheck can the IRS levy? The IRS can take a significant portion of your wages—often up to 70%, depending on your filing status and exemptions.

    Q4: Can I stop a levy once it starts? Yes. You may still be able to stop or reverse a levy by entering into a payment plan, proving financial hardship, or submitting an Offer in Compromise.

    Q5: What if I can’t afford to pay the IRS? You may qualify for Currently Not Collectible status, which temporarily stops IRS collection actions, including levies.

    Get Help Stopping an IRS Levy

    If you’ve received a Final Notice of Intent to Levy—or the IRS has already taken your wages or bank funds—DFATS can help you take back control. Our team provides compassionate, experienced support for taxpayers facing urgent IRS action.

    Contact Us

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