Today TaxMama hears from Mike in Arizona who has this problem. “I have a notice of levy for three years of back taxes. I can’t afford full payment but can send about $300 per month to keep them satisfied. “
That levy notice means, if you don’t do something FAST, IRS will take all the money that was in your account on the day the levy hit the bank.
Not money that comes in the next day or week or… Just the money that’s in the account that day.
You can stop the levy by calling the phone number on the notice and arranging a payment plan.
Depending on how much you owe, you may be able to arrange to pay $300 per month. Or not. If the balance is much too high.
You can figure out how much IRS thinks you can afford to pay by filling in a Form 433-A just for your own information – before you IRS or submit your proposed payment plan.
Fill out Form 9465, the Installment Payment Request
And have that handy when you call IRS.
If you owe $10,000 or less, can pay the balance off within 3 years, and meet certain conditions, IRS will automatically accept your proposed payment plan.
Incidentally, for total balances of $25,000 or less (including penalties and interest), you can use the Online Payment Agreement
Whatever you do, do it quickly. Either talk to IRS immediately, or get a tax professional to do it for you.
And remember, you’ll find answers to lots of questions about tax levies and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
- Ask TaxMama :: Where taxes are fun and answers are free
- TaxQuips :: The number ONE tax podcast online
- IRS Form 433-A :: Collection Information Statement for Wage Earners and Self-Employed Individuals
- IRS Form 9465 :: Installment Payment Request
- IRS Online Payment Agreement :: File your request online if you owe $25,000 or less