Am I in a hopeless situation now??

Discussion in 'Tax' started by Shhhh, Aug 8, 2010.

  1. Shhhh

    Shhhh Guest

    Hello all,

    As embarrassing as it is to admit, at this point in time I have been
    unable to pay back taxes I've owed since tax year 2007.

    I had previously contacted the IRS and worked out a monthly payment
    schedule, but I've fallen behind on bills, and my business has been
    suffering greatly. And for the past 5 months I have been unable to pay
    anything. Today in the mail I received IRS Form 8519, Levy of my bank
    account. Is that it? Am I officially screwed with no income for me and
    my family to survive since the IRS is taking everything? Is it too
    late for me to try and negotiate a reduced monthly payment?

    Please any and all thoughts are greatly appreciated.

    Thank you.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Shhhh, Aug 8, 2010
    #1
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  2. Shhhh

    John Fisher Guest

    On Aug 7, 11:14 pm, Shhhh <> wrote:
    > Hello all,
    >
    > As embarrassing as it is to admit, at this point in time I have been
    > unable to pay back taxes I've owed since tax year 2007.
    >
    > I had previously contacted the IRS and worked out a monthly payment
    > schedule, but I've fallen behind on bills, and my business has been
    > suffering greatly. And for the past 5 months I have been unable to pay
    > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > account. Is that it? Am I officially screwed with no income for me and
    > my family to survive since the IRS is taking everything? Is it too
    > late for me to try and negotiate a reduced monthly payment?
    >
    > Please any and all thoughts are greatly appreciated.
    >
    > Thank you.


    No!! You are not a hopeless case. IMMEDIATELY, call the number
    shown on your letter. Tell your story and ask them to stop the levy.
    In my experience, I have never known them to deny that kind of
    request. You have options and the agent will help you as much as
    possible. You may even be able to make an offer in compromise, likely
    with the help of a tax professional, to reduce your obligation.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    John Fisher, Aug 8, 2010
    #2
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  3. Shhhh

    Salmon Egg Guest

    In article
    <>,
    Shhhh <> wrote:

    > Hello all,
    >
    > As embarrassing as it is to admit, at this point in time I have been
    > unable to pay back taxes I've owed since tax year 2007.
    >
    > I had previously contacted the IRS and worked out a monthly payment
    > schedule, but I've fallen behind on bills, and my business has been
    > suffering greatly. And for the past 5 months I have been unable to pay
    > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > account. Is that it? Am I officially screwed with no income for me and
    > my family to survive since the IRS is taking everything? Is it too
    > late for me to try and negotiate a reduced monthly payment?
    >
    > Please any and all thoughts are greatly appreciated.
    >
    > Thank you.


    I often listen to a radio that heavily advertises services to deal with
    the IRS. The advertisers claim to be able to be able to wipe out most of
    the tax debt. They claim that they have the expertise to deal with the
    IRS while the IRS will tear the unaided taxpayer to shreds.

    Impression of the IRS is not all that bad. My guess is that if you try
    to deal rationally with the IRS, you will be treated rationally by the
    IRS. But I never owed large amounts of tax or was in other forms of deep
    doodoo.

    I am curious however, do these services perform a legitimate
    representation or are they just another scam?

    Bill

    --
    An old man would be better off never having been born.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Salmon Egg, Aug 9, 2010
    #3
  4. Shhhh

    John Fisher Guest

    On Aug 9, 10:45 am, Salmon Egg <> wrote:
    > In article
    > <>,
    >
    >
    >
    >
    >
    >  Shhhh <> wrote:
    > > Hello all,

    >
    > > As embarrassing as it is to admit, at this point in time I have been
    > > unable to pay back taxes I've owed since tax year 2007.

    >
    > > I had previously contacted the IRS and worked out a monthly payment
    > > schedule, but I've fallen behind on bills, and my business has been
    > > suffering greatly. And for the past 5 months I have been unable to pay
    > > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > > account. Is that it? Am I officially screwed with no income for me and
    > > my family to survive since the IRS is taking everything? Is it too
    > > late for me to try and negotiate a reduced monthly payment?

    >
    > > Please any and all thoughts are greatly appreciated.

    >
    > > Thank you.

    >
    > I often listen to a radio that heavily advertises services to deal with
    > the IRS. The advertisers claim to be able to be able to wipe out most of
    > the tax debt. They claim that they have the expertise to deal with the
    > IRS while the IRS will tear the unaided taxpayer to shreds.
    >
    > Impression of the IRS is not all that bad. My guess is that if you try
    > to deal rationally with the IRS, you will be treated rationally by the
    > IRS. But I never owed large amounts of tax or was in other forms of deep
    > doodoo.
    >
    > I am curious however, do these services perform a legitimate
    > representation or are they just another scam?
    >
    > Bill
    >
    > --
    > An old man would be better off never having been born.
    >
    > --
    > << ------------------------------------------------------- >>
    > << The foregoing was not intended or written to be used,   >>
    > << nor can it used, for the purpose of avoiding penalties  >>
    > << that may be imposed upon the taxpayer.                  >>
    > <<                                                         >>
    > <<   The Charter and the Guidelines for submitting posts   >>
    > <<  to this newsgroup as well as our anti-spamming policy  >>
    > <<                  are atwww.asktax.org.                 >>
    > <<         Copyright (2007) - All rights reserved.         >>
    > << ------------------------------------------------------- >>- Hide quoted text -
    >
    > - Show quoted text -



    ..”Let the buyer beware!!=:)

    Back in 2004, IRS Commissioner Mark Everson issued this caveat:

    “We are increasingly concerned about unscrupulous promoters charging
    excessive fees to taxpayers who have no chance of meeting the
    program’s requirements,” “We urge taxpayers not to be duped by high-
    priced promises.”

    If one believes one might qualify, it would be best to consult a local
    preparer who is familiar with the process, who can study the
    individual case, and who will give an honest appraisal with regards to
    potential success.

    The statistics, I've observed, indicate that only about 25% of Offers
    in Compromise are successful.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    John Fisher, Aug 9, 2010
    #4
  5. Shhhh

    Tyler Franks Guest


    >
    > As embarrassing as it is to admit, at this point in time I have been
    > unable to pay back taxes I've owed since tax year 2007.
    >
    > I had previously contacted the IRS and worked out a monthly payment
    > schedule, but I've fallen behind on bills, and my business has been
    > suffering greatly. And for the past 5 months I have been unable to pay
    > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > account. Is that it? Am I officially screwed with no income for me and
    > my family to survive since the IRS is taking everything? Is it too
    > late for me to try and negotiate a reduced monthly payment?
    >
    > Please any and all thoughts are greatly appreciated.
    >
    > Thank you.



    I have had luck with having the IRS determine my clients in a "currently not
    collectible" status. This stops all leins and levies, and they stop sending
    you collection notices. You would still owe the taxes, and the interest
    would continue to acrue however if you remain on this status long enough,
    the statute of limitations continues to run, and the IRS will no longer be
    able to collect it.

    To have the IRS consider you "Currently not Collectible", you must fill in a
    shortened 433 form (433-F)which shows your income and expenses and an
    installment agreement form 9465 showing a $0 installment due to the
    calculations on the 433. Before I did any of this, I would call the IRS at
    the number on the latest letter and ask them how best to qualify for this
    status. It may be that your current installment agreement will cause an
    issue.

    If approved, periodically, the IRS will re visit your status to see if you
    are more capable of paying, but this is merely refilling the forms for
    current conditions. You should have an Enrolled Agent or other professional
    help you with this process, but it is significantly more likely than a Offer
    in compromise, which are approved less than 30% of the time, if recent press
    clippings are correct.

    best of luck

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Tyler Franks, Aug 9, 2010
    #5
  6. Shhhh

    candaexpress Guest

    On Aug 7, 8:14 pm, Shhhh <> wrote:
    > Hello all,
    >
    > As embarrassing as it is to admit, at this point in time I have been
    > unable to pay back taxes I've owed since tax year 2007.
    >
    > I had previously contacted the IRS and worked out a monthly payment
    > schedule, but I've fallen behind on bills, and my business has been
    > suffering greatly. And for the past 5 months I have been unable to pay
    > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > account. Is that it? Am I officially screwed with no income for me and
    > my family to survive since the IRS is taking everything? Is it too
    > late for me to try and negotiate a reduced monthly payment?
    >
    > Please any and all thoughts are greatly appreciated.
    >
    > Thank you.
    >


    ***********************************************************************
    Not sure how much amount is under dispute, and financial hardship you
    are in... but one website that might give u an opinion on options
    available to you is taxlifeboat.org

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    candaexpress, Aug 10, 2010
    #6
  7. "Shhhh" <> wrote in message
    news:...
    > Hello all,
    >
    > As embarrassing as it is to admit, at this point in time I have been
    > unable to pay back taxes I've owed since tax year 2007.
    >
    > I had previously contacted the IRS and worked out a monthly payment
    > schedule, but I've fallen behind on bills, and my business has been
    > suffering greatly. And for the past 5 months I have been unable to pay
    > anything. Today in the mail I received IRS Form 8519, Levy of my bank
    > account. Is that it? Am I officially screwed with no income for me and
    > my family to survive since the IRS is taking everything? Is it too
    > late for me to try and negotiate a reduced monthly payment?
    >
    > Please any and all thoughts are greatly appreciated.
    >
    > Thank you.


    STOP! CALL AND SEE A LOCAL TAX PRO, preferably an Enrolled Agent. EAs are
    tax representation specialists by definition.

    There are two kinds of levies - Static & Dynamic.

    A static levy is sent to banks with instructions to hold all monies in the
    identified account, notify you, and give you a period of time to resolve the
    matter. If you don't resolve the matter and get a release from the IRS the
    bank has no choice but to send whatever money was in your account at the
    time the levy was received to the IRS.

    Please read that last paragraph AGAIN, then read it a third time.

    Bank levies are STATIC Levies - the attach to the money IN THE ACCOUNT WHEN
    THE BANK GETS THE LEVY, AND NOTHING MORE. So if you had $50 in the account
    on Tuesday, when the bank opened the letter and put the hold on your
    account, then on Wednesday you deposited $250 MILLION in Lottery Winnings,
    the bank CAN ONLY send the IRS the $50 was in the account when they got the
    levy notice - NOTHING MORE.

    Dynamic levies are different - these are sent to PAYORS, usually employers
    but they can be sent to others who pay you regularly. Typically, if your a
    contractor or subcontractor of some sort, the IRS will look for 1099s issued
    to whomever they are issuing the levy against and send them a levy notice
    that says "forward ALL future payments to ABC Co. to us until EITHER you've
    sent us $x,xxx.00 Dollars OR until we tell you to stop." These levies go on
    and on and the IRS intercepts ALL monies being paid you to now and in the
    future.

    You NEED to meet with a tax professional who specializes in Taxpayer
    Representation. This may be a CPA, but not all CPAs do tax work. EAs, by
    definition, are taxpayer representatives. BUT not all EAs represent all
    kinds of taxpayers. You'll need to make some calls and ask some questions.
    Start with www.naea.org - the National Association of Enrolled Agents.
    Their web site has a link where you can search for EAs in your area.

    Someone needs to work with the IRS on your behalf - NO ONE should try to
    handle the IRS for their own case (remember the old axiom "an attorney who
    represents himself as a fool for a client."). We can't handle our own
    cases, we're too close, we think emotionally and not logically and we're
    tempted to say more than we should, which almost always hurts us long term.
    It simply is NOT a good idea to deal with the IRS yourself - at least not
    without talking to a pro first.

    You may be able to get on Uncollectible Status, you may qualify for an Offer
    In Compromise, you may be able to renegotiate your installment agreement.
    There are even ways to get payroll trust fund taxes resolved. BUT the
    average person has NO IDEA where to even start. You NEED professional help
    and you need it sooner rather than later.

    Good luck,
    Gene E. Utterback, EA, RFC, ABA

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Gene E. Utterback, EA, RFC, ABA, Aug 11, 2010
    #7
  8. Shhhh

    Tassato

    Joined:
    Oct 4, 2011
    Messages:
    1
    IRS wiped out my checking acount

    Hi Everyone,


    Today I found out that the IRS levied my checking account with BoA, and wiped it clean leaving a negative $100. In the mail today I found form 8519 right on cue. Its weird because we are in appeal with them regarding a 2007 audit and we just got a letter saying they would allow certain items. In fact in that very letter the IRS asked our particpation on a conference call scheduled in a few days. Very bizarre.

    My question is about my credit report. I have stellar credit and very high lines of credit with several institutions and I am worried this action may cause my credit to go in the trash. By them levying my checking account does that automatically mean that they have filed a tax lien on myself which will then show up on my credit report and negatively impact my score? I am seeing conflicting reports online on whether the IRS can levy a bank account without filing a tax lien. Any chance anyone knows if a bank levy negatively affects one's credit report? Thanks in advance.
     
    Tassato, Oct 4, 2011
    #8
  9. Shhhh

    wayneparsons

    Joined:
    Oct 10, 2011
    Messages:
    9
    You're not Screwed

    :) You are not screwed and you can get the levy released. Here's what to do:
    Calm down. Go to IRS.Gov. Get Form 433-F. Fill it out, reading all of the instructions. If the instructions indicate receipts of bills be included get those receipts or bank statement and have them on hand.
    Aftere you've filled out the form, call the IRS number listed on the levy. If you don't have a copy of the levy, call the bank and get one. Just run by the bank.
    Call IRS and give them your story. Keep calm when talking to them. If you have any other questions, call me @ 972-839-0456 dallas, tx
     
    wayneparsons, Oct 10, 2011
    #9
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