Orange County Bank Levies – IRS Levies – Threats to Levy

State or Federal Tax Levies should never catch any taxpayer by surprise! If your are surprised, then I can accurately guess that you have been depressed and despondent about your tax problem that you have probably been stacking your State of California and IRS letters —even the certified ones— UNOPENED in a pile that you just cannot garner the courage to address. It happens. Just like I described. All the time. You are not alone!

“I’ll deal with those scary letters when I have the funds to take care of all that…”

You Need Some Good News – Let Me Explain Something

The State Tax Collection and the IRS Tax Authorities are comprised of regular people — just like you. THe employees at the Franchise Tax Board and the IRS are our neighbors, parents of children that go to school with our kids, people you bump into while grocery shopping: regular folks… They don’t want to rain down hell and brimfire on your head. But if you ignore their employer’s letters, they are paid to do so. What’s that R-rated bumper sticker?

These government employees — (your neighbors – people just like you), when you reach out, are often more than reasonable. That’s the good news!

The IRS will send a you certified mail letter — a final “notice of levy” to the address they have on record for the year the debt was created. If —out of sheer terror— you opened that letter and are here at my website because of it, it may not be too late to get ahead of the fire and brimstone. Call me! Call me. (714) 863-7857

Are You Reading This Because You Are Looking at an IRS Certified Letter?

The prudent move is to chase me down. I work alot so be persistent…

  • Call me. (714) 863-7857
  • If your call to me happens to go to voice mail, email me.
  • Use the Contact Us form on the side bar too.
  • Make my smartphone and computer start making incoming email noises.

If you are being levied because you have unfiled tax returns, I’m your guy.

Paul W. Raymond, Esq.If you are being levied because you’ve been battling the IRS by phone, email, and letter for years – and they are pushing back, it may be time for you to call a tax attorney. If your situation is where you need a tax attorney – call one. I have a few I can refer you to. One, in particular, is a local Orange County Tax Attorney Paul W. Raymond, Esq. Paul does NOT compile nor file tax returns, so if you need to get your paperwork in order first, let’s get that done so when you meet with Paul Raymond or another Tax Law Attorney, you’ll be properly prepared.

The State of California; the IRS – THEY are the government!   You are not. They WIN. You LOSE. Sorry…

Police Powers of the State and IRSIt’s not that I am not sympathetic.    I am very sympathetic to your situation if the State of California or the IRS is about to levy your property. I hear about such awful problems all the time. Unfortunately, what makes this all so much worse — The BIG problem for you — is that The State of California and even more so — the IRS — has police powers over Americans that the folks at the CIA, NSA, FBI, and local police can only dream about.

  • Constitutional protections against illegal search and seizure – “forget about it…” (play a New York accent in your head).
  • Protections against self-incrimination – “forget about it…”
  • Upshot – I’m an accountant, an accounting instructor, and a damn good tax preparer. But I am not God.
  • Have me help you – get your records in a logical order then call Paul Raymond, or another Tax Attorney
  • Oh, and seriously – Good luck.

Back to those panicked people who opened a certified letter threatening levy.

Orange County California State and IRS Levies You… I might be able to help. Especially if, until now, you’ve never talked to the State Tax Agency or the IRS – which ever one is causing you grief. Call me. Right away. Especially if you are facing a tax levy because you had your head in the sand, and you are aware that the tax folks need some tax returns, or some communication from you.

I’ll bet you a pack of Oreos that we can call the “annoyed tax agency” threatening you and buy ourselves a 30-60 day delay if we sincerely promise them to be forthcoming in a few weeks with the tax returns or other information they are needing to clear your file from the flashing red light level it is currently at. It’s like the game of tennis – a little back and forth. We can work with the government and buy months of time to produce forms and work towards a resolution. With the tax people, it’s all about communication.

Levies Can Be Disastrous

State Tax Agency Levies and IRS levies can be disastrous — especially bank levies . Bank levies can cause critical checks (like rent or mortgage payments) to bounce, compile pricey bank service charges, and a general loss of funds that you might have been counting on for living expenses. Bank levies do a lot of damage to the point of ruining your life in the short term. Fortunately! A bank levy is only good for the ONE day, A bank levy is only viable the DAY it is received by your bank. If you have only a little bit of money in your bank account THE DAY when a bank levy was processed, you dodged a bullet. Count your blessings for a full minute – then CALL ME! (714) 863-7857

A levy is the IRS’s “not so subtle way” to get your attention. What the IRS levy is saying is:

“We have tried to communicate with you but you have ignored us… DO WE HAVE YOUR ATTENTION NOW?”

Imagine waking up one morning and finding all your bank accounts have been cleaned out. They will take every dime. If this amount did not cover what is owed, they’ll keep issuing additional bank levies until they get all they need to erase your tax liability, fines, fees, penalties and interest. They know that levying your bank account will cause checks to bounce, alerting many people that you have tax problems. The State or Federal MACHINE doesn’t care! Their employees might – when you finally talk to them, but the AGENCY has no soul. The MACHINE’S sole objective is to collect the taxes you owe it. Period.

Wage Garnishments

An IRS levy of your bank account might seem terrible, but a bank account levy pales in comparison to having your pay check garnished. That’s when a portion of your pay check goes to the IRS. It gets worse for non W-2 folks (e.g. 1099 workers, contractors, sole-proprietors, self-employed persons and business owners . If you are a 1099 “self-employed” contractor, the IRS can take 100% of your earnings! The IRS doesn’t have to leave you enough money to pay your bills. Back to W-2 Employees – Worse of all, a wage garnishment continues each and every pay period until your tax debt is fully paid. That often makes your employer a little ticked off as there is a lot of extra paperwork that they have to deal with.

We Can Usually STOP a Wage Garnishment – By Communicating

The State of California or the IRS will pay attention to a taxpayer who decides to make contact and come to a short term promise (submit missing tax returns in 30 days) or by agreeing to some sort of plan (A tax payment installment agreement). If an accountant or tax professional starts to advocate for you, the taxpayer, with the State or the IRS, the taxing agency will recognize that you are now taking them seriously and will virtually always be agreeable to ceasing draconian type collection tactics such as bank levies and wage garnishments. Not always, mind you, but you’d be surprised…

Bank Levies & Wage Garnishments Should be Avoided at All Costs

Bank Tax Levies and Wage Garnishments are most often the result of poor communication between the taxpayer and the State of California or IRS — or no communication —- no response ever from the taxpayer when the escalation of collection efforts is headed toward a lien and levy. It is understandable why many taxpayers become depressed to the point of not communicating with the IRS and other tax agencies because they think they owe more money than they can possible pay. Human nature. The feelings of being powerlessness to take care of any current or old tax problems, many taxpayers will stack the unopened envelopes in a pile until some future time when circumstances might improve. That might not be the best approach. Call me.

Putting ones’ head in the sand is a foolish decision. A taxpayer might decide to ignore the State or IRS, but the State or IRS will not choose to ignore the taxpayer. No matter the taxpayer’s current financial circumstances, if you are being threatened with a bank levy or wage garnishment, or a levy action or garnishment has already happened, call me. If I can help, I’ll tell you how that might look. If I cannot help you, I can refer your to a local tax attorney, like Paul W. Raymond, Esq., who might be able to help you. He’s a die-hard Dodger Fan like me, so he’s obviously a gold-plated referral.

Facts Taxpayers should know about IRS Bank Levies

  • An IRS bank levies are only valid for the one day the levy is received by the bank.
  • The bank is required to hold whatever amount is available in your account that day —up to the amount of the IRS levy— and then send those funds it to the IRS in 21-days.
  • The typical IRS bank levy does not affect any future deposits made into your bank account. It is possible that the IRS will issue another Bank Levy if the first one came up empty or short of the tax owed. So be very careful!

What can the Taxpayer do if their Bank Account was Levied?

An IRS bank levy is not an open-ended action that vacuums up every dollar you or your employer might deposit to your bank account. The typical IRS bank levy is a one time only levy that is good ONLY on the day the bank receives the request to levy. They are to deduct all funds (up to the amount of tax owed) from your bank account. You can read more about the laws in the Internal Revenue Manual

Federal tax law gives the taxpayer a 21-day window of opportunity to petition the IRS to rescind the levy and have the funds being held released back to the taxpayer’s account before the bank forwards the levied funds to the IRS. This 21-day waiting period, mandated by Internal Revenue Code 6332(c), provides an opportunity for your accountant to contact the IRS and negotiate a release of the levy so that the money being held in trust will be returned to your account and control.

Does my bank have to give me notice before freezing my account?

No. The law provides that when the bank receives a levy notice, it must immediately freeze your account before notifying you. That is why most people discover that their account is frozen when they try to use their ATM cards and the expected balance is WAY LOW or ZERO.

Palovik Financial Services

Eugene Palovik
Palovik Financial Services
P.O. BOX 206
Buena Park, CA 90621

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(714) 863-7857 – Office

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