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Video instructions and help with filling out and completing Can Form 843 Wage

Instructions and Help about Can Form 843 Wage

Hello everyone! Today, I'd like to discuss the matters of a levy and a federal tax. Firstly, let's determine the difference between a levy and a tax lien. A levy occurs when the IRS seizes your property to pay a tax debt, while a lien is when the IRS places a claim against your property to pay a tax debt. Now, let's focus on a levy. A bank account levy, wage levy, and accounts receivables levy can all be issued. If you're self-employed, an accounts receivables levy can be issued. When it comes to a bank account levy, the bank is required to hold the funds for 21 days after receiving the levy, before submitting them to the IRS. This is to verify the validity of the bank account and give the taxpayer time to make arrangements to pay their tax debt or prevent the levy. Note that the bank account levy only applies to funds in the account on the day the bank receives the levy. Deposits made after that day cannot be touched unless another levy request is received. Multiple levy requests can be submitted to the bank, and there is no limit to the number of levies they can impose. Moving on to a wage levy, it is similar to a wage garnishment. Your employer receives the levy request and usually has 30 days before they start sending the money to the IRS. Use this time to make arrangements with the IRS or pay off your tax debt, as the IRS can take everything except for the exempt amount or amounts. Now, let's discuss the federal tax lien. Having a federal tax lien filed against you is not ideal. It affects various aspects of your life, such as being reported to credit bureaus. The IRS can attach the...