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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 20 I may refer to my notes from time to time during this discussion so let's first determine what the difference is between a levy and a tax lien and yes there is a difference a levy is when the IRS actually ceases in your property takes your property to pay a tax debt and a lien is when the IRS places claim against your property to pay a tax debt so let me say that again a levy is when the IRS actually takes your property to pay the tax debt and a lien is a claim against your property to pay the tax step so let's discuss a levy first now in regards to the levy a bank account levy can be issued and a wage levy can be issued also an accounts receivables levy can be issued if you're self-employed now in regards to the bank account levy the bank has to hold the funds 21 days before they submit the funds to the IRS again the big has to hold the funds 21 days after receiving the levy before they submit the funds to the IRS and there are several reasons for this one they want to verify the validity of the bank account they don't want to Lebanese someone's account there should it be levy and shoe during that 21-day period that gives the taxpayer time to make arrangements to pay their tax debt or to make other arrangements to prevent the levy from being from going for it so again when the bank received the levy request they put a hold on the funds for 21 days and in regards to a bank account levy note that it is only the levy is only applicable the day that the bank receives it which means that if they receive it on a certain day and you have a certain amount of money in the bank those funds in the bank on the day that they receive the levy will be affected by that levy request if there are funds if you make a deposit the next day and no other levy request has been received by the bank those funds cannot be touched levies are not bank account levies are not continuous but that does not mean that the IRS will not submit another bank account levy and there is no limit as to the number of levees that they can you know submit to the bank regarding your account they can do it every day if they want to I'm not sure if they do that but they can do it every day so but just note that the bank account levy request is only applicable to the funds that are in your account on the day that the bank receives it and again the bank has 21 days before submitting these funds to the IRS and during that 21 days you really should take full advantage to try to get your tax situation taken care of in regards to a wage levy which pretty much is the same thing as a wage garnishment your employer receives the levy request they usually have 30 days before they need to start sending the money to the IRS during this 30-day period use it to your advantage to try to make arrangements with the IRS or to pay off your tax debt because once they start living your wages the IRS really doesn't care if you don't have enough to live on because there's a certain formula that they use when they levy or garnish your wages they can take everything except for the exemption amount or amounts if you're claiming dependent it's understandable that you have feels that you have to pay rent that you have to buy food etc but the IRS doesn't care okay they're going to get their money and so they will take everything or they can take everything outside of the exempt amount and for more information regarding the exempt amount you can visit the IRS website at WWE is govt and find out what the exempt amount and what the process is for them living or garnishing your wages so now let's talk about the federal tax lien which is not a very good thing to have filed against you with the federal tax lien this affects you in many areas for one a federal tax lien is usually reported to the credit bureaus and federal tax liens are very bad on a credit report to a federal tax lien attaches to assets that you own that the IRS knows about and that could be real estate that could be securities a vehicle's any assets that the IRS is aware of they can attach the lean-to and note that if you think filing BK bankruptcy is going to get rid of the lien think again because in some cases even after the BK has been discharged the lien is still in place and trust me the IRS will find ways to get their money now in regards to the lien there are two options that you have to deal with the lien well actually three you can pay off the tax debt or you can request a discharge of property they have a lien against your property or you can request a subordination of Lee now let's briefly talk about the discharge of property leading requests in certain circumstances the IRS will approve this if it's in their best interest of course and basically what this discharge of property lean requests will do is remove the federal tax lien from your property so that you can sell it and for more information regarding the discharge of property lean request you can refer to publication 783 IRS Publication 783 now in regards to the subordination of lean request you can refer to publication.

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