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I Owe the Government Money and They Are Taking it From My Pay. – Vince

“Dear Jim,

i need to pay the gov. back over 10,000. they are taking my money from my pay leaving me with hardly enough to live.on.i need to pay back taxes to them. plus the mva. i want to pay but its taking to much and to long. i need help of some kind please!

can you help me with my problem

Vince”

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The Answer

Vince:

Thanks for your question. I believe I have an easy answer for you as long as you can pay the IRS about $200 a month in an installment agreement. It will remove your levy.

Here is how you remove your levy and get “right” with the IRS:

First- You need to contact them. The IRS issues levies when a taxpayer has not set up an arrangement with them on their back liabilities. You need to set up an agreement with them on your back taxes owed. I am assuming that you have filed all your required tax returns for the last six years. If not, do so immediately.

There are several arrangements that you can make with the IRS. However, they are based on your financial status. Here they are:

  • An installment agreement – i.e. negotiate a payment plan
  • Currently not collectible status – prove to the IRS (with a financial statement – Form 433A – and documentation to prove your income, expenses, assets and liabilities) that you cannot pay them at this time based on your current financial situation
  • Offer in compromise – apply to have your debt settled based on your financial status. This will require filing a financial statement – Form 433A, an application for an OIC- Form 656, and providing documentation to prove your income, expenses, assets and liabilities.

If you have the ability to pay the IRS, you can just set up an installment agreement. If you can pay about $200 a month, I suggest you set up a “streamlined installment agreement” with the IRS. It will allow you to pay off the balance owed in 72 months (assuming your debt is from 2007 tax year or later). The IRS will issue a levy release with the installment agreement. In fact, if you are having a hardship from the levy and you insist it be released immediately, you can have them fax the levy release to your employer when you set up the agreement. You call the IRS at 800-829-7650 or the number on your last IRS notice to set up a payment plan and get a levy released.

The streamlined installment agreement with a levy release is the easiest and quickest way to remove your levy and get back on track.

I hope this helps.

Thanks,

Jim

I Owe the Government Money and They Are Taking it From My Pay.   VinceJim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

If you have a tax question you’d like to ask just use the online form. I’m happy to help you totally for free.

I Owe the Government Money and They Are Taking it From My Pay. - Vince by

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About Jim Buttonnow

Jim Buttonnow
Jim Buttonow, CPA/CITP, is cofounder of Beyond415. He has more than 26 years of experience in IRS practice and procedure. Reach Jim at [email protected].

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