Comments for IRS Garnishment

Comment on Tax on law claim settlement from a foreign country? by Pebble

Pebble — Wed, 28 Sep 2011 03:00:21 +0000

You do not pay taxes on Court Settlements in the US, and it is not considered income.

In the US, there IS an ESTATE TAX which taxes you upon death if you have more than $5 million in assets.

Jss doesn’t know what she is talking about.

Comment on didn’t work to file taxes and there was $50. taken out of my checking. Says it was a state tax levy? by SmartA$$

SmartA$$ — Sat, 17 Sep 2011 11:56:30 +0000

There are thousands of reasons why the state might THINK you owe them money. Some of them could be correct, others could be wrong. For example, maybe someone used your SSN at a job and the state thinks you earned income that you never did.

The only way to figure out WHY they think you owe, and whether or not they’re right is to contact the state’s department of revenue. The IRS only handles federal taxes.

If the state has already levied your bank account they should have sent you several letters explaining why you owed and warning you that a levy was coming. Its also possible that someone else who owed the state gave them your bank account number. You really need to contact the state department of revenue and find out what’s going on.

Comment on didn’t work to file taxes and there was $50. taken out of my checking. Says it was a state tax levy? by Doctor Deth

Doctor Deth — Sat, 17 Sep 2011 11:11:47 +0000

FYI – just because you live at home and go to school doesn’t mean you won’t owe any income ax – tax is based on the amount of money you earn – being a student doesn’t exempt you from taxes

talk to your payroll dept and “STATE TAX” has nothing to do with the IRS – IRS involves federal taxes only

Comment on didn’t work to file taxes and there was $50. taken out of my checking. Says it was a state tax levy? by Judy

Judy — Sat, 17 Sep 2011 10:46:56 +0000

A state tax levy has nothing to do with the IRS, they’re federal only.

There are a lot of different types of taxes that aren’t income taxes. Contact your state and find out what the levy is for, or else read the letters they sent you before taking it if you still have them.

Comment on Q&A: Does a parent of a deceased adult child have to pay the child’s tax debt? by Judy

Judy — Fri, 16 Sep 2011 17:54:53 +0000

She shouldn’t be responsible for his tax debt, but if she received a refund that he wasn’t entitled to, then she’d have to pay that much back.

And if he had assets, any additional taxes due would have to be paid from those assets.

Comment on Q&A: Does a parent of a deceased adult child have to pay the child’s tax debt? by waggy_33

waggy_33 — Fri, 16 Sep 2011 17:01:57 +0000

I assume that she has been appointed personal representative of his estate.
As such she is responsible to pay all debts of his out of his assets. She would never have to use her assets to pay the debts and taxes.
I she is not the personal representative of the estate then the answer is definitely never.

Comment on Q&A: Does a parent of a deceased adult child have to pay the child’s tax debt? by Kuji

Kuji — Fri, 16 Sep 2011 16:10:23 +0000

Yes. It surprised me to learn it but if she was aware that he might owe money and took charge of his affairs the IRS holds her responsible. If he had income that she wasn’t aware of, she may be able to be relieved of some of the debt. No matter what, she will need to pay back the portion which was refunded.

Comment on Q&A: Are you happy with your career as a tax accountant or a tax attorney? by Vcvcv

Vcvcv — Thu, 15 Sep 2011 20:59:05 +0000

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Comment on Have you ever had an IRS bank levy? by Steve

Steve — Thu, 15 Sep 2011 01:36:17 +0000

No, I have never had an IRS levy.

Comment on Will the Tax Payers Advocate help me with my IRS tax debt for free? by Common Sense

Common Sense — Wed, 14 Sep 2011 07:34:16 +0000

Only YOU can take care of it. The advocate merely helps you deal with the red tape.

Comment on Will the Tax Payers Advocate help me with my IRS tax debt for free? by Max Hoopla

Max Hoopla — Wed, 14 Sep 2011 06:57:44 +0000

The Taxpayer Advocate’s job is not to be your representative but to get involved when the system breaks down or you are about to suffer a significant hardship. It is not the place where you start.

Comment on Will the Tax Payers Advocate help me with my IRS tax debt for free? by tro

tro — Wed, 14 Sep 2011 06:40:13 +0000

the Tax advocate is yes a free IRS service however, it is not for resolving your tax debt
the office is available to help you resolve tax issues you have not been able to resolve with the normal IRS channels
it is a small office, not a big work force and very busy
if you have a $ 16000 tax debt, you only options are to pay it, get an installment agreement or try the Offer in Compromise–which you can do yourself
the latter is not often accepted and not a hugely successful option

Comment on Q&A: If the IRS does a levy or garnishment,how much will they take out of my check for me to live? by butt muncher

butt muncher — Tue, 13 Sep 2011 11:45:25 +0000

Call and negotiate. They tried to take 85% of my pay check. We came to an agreement at $ 50.00 a month. Far cry from $ 350.00 a week

Comment on IRS and wage garnishment help please? by Max Hoopla

Max Hoopla — Mon, 12 Sep 2011 16:58:27 +0000

You will receive a letter entitled “Notice of Intent to Levy and Your Right to a Hearing” by certified mail at least 30 days before any levy. If you don’t respond to it in an attempt to resolve your account peacefully, you are fair game. If you get a notice that there is certified mail waiting for you, don’t ignore it.

Comment on when does the IRS withhold garnished wages from the employee, is it before or after tax deductions? by Jss

Jss — Sat, 10 Sep 2011 13:20:48 +0000

Tax will be withheld from the amount garnished. It is your taxable income.

Comment on when does the IRS withhold garnished wages from the employee, is it before or after tax deductions? by shoredude2

shoredude2 — Sat, 10 Sep 2011 13:09:22 +0000

Garnishes are taken after required taxes are withheld and before deductions that aren’t legally required like insurance and 401k deductions.

Garnishments would be an after-tax deduction. His payroll department can tell him what the deduction is for.

Comment on Q&A: How does a tax settlement business make money? They advertise on TV and you have to have at least $10K in debt? by mainecpa

mainecpa — Thu, 08 Sep 2011 18:02:11 +0000

They first review your case to see what kind of chance they have in negotiating a reduction. There are a number of ways to negotiate a settlement. Google “Offer in Compromise.” There are no secrets here, but the way to success is to strictly follow the law and the guidelines. Experience counts for a lot here.

Any tax CPA can do the same thing, and in my opinion, in a more ethical manner. You will have to come up with the cash to pay for a full review of your case, but in the end, you should get an honest answer.

These TV firms lock you in to a percentage of what they get for a discount.

Comment on Q&A: If my husband and I are married but file separate tax returns and he receives a 668-W, can the IRS levy me? by tro

tro — Wed, 07 Sep 2011 23:39:47 +0000

if you file separately, what belongs to him belongs to him and what belongs to you—-etc
if he has a tax problem, filing separately should give you a little security that it will not affect you

Comment on Q&A: If my husband and I are married but file separate tax returns and he receives a 668-W, can the IRS levy me? by Judy

Judy — Wed, 07 Sep 2011 23:07:21 +0000

In most states, no, but it depends on what state you are in.

Comment on Can the IRS come after my new husband for an old IRS debt from 98-99 that I had? Can they only use my income? by Pernelle Flamel

Pernelle Flamel — Tue, 06 Sep 2011 09:18:11 +0000

Yes, it is possible that the IRS could take posession of joint assets against your debt. Especially the refund on a joint tax return. But, never fear, there are ways around this. First and foremost, if you file a joint return, which is often the most advantageous way to file when you are married, you need to file an “Injured Spouse” form with the return. In this case, your husband is the ‘injured spouse’ – and no, it doesn’t mean you hit him . This will allow the IRS to give him any refund that is due to his earning and withholdings/credits/deductions. They’ll still keep your portion.
The IRS can go back as far as they want to if they find a fraudulent or improper return. Literally. I’ve never seen them go back farther than ten years, but I have some friends who claim the IRS went back 17 years on them for not filing.
In response to the question about the bank statements, it’s going to depend on whether or not you live in a community property state. If so, it’s possible that they could use your husband’s income as well as yours. Otherwise, they should only use your income.
My best advice? Keep communication with the IRS as open and honest as you can, and as frequent as you need or want. If someone prepared your taxes for the years that you owe, contact them and ask if they can help you through all the legalities and paperwork. If not, find an Enrolled Agent or qualified tax professional who will help you out. You can do this by calling local tax prep offices and asking. You also have the option to use a Taxpayer Advocate provided by the IRS – in your position, I’d do that as soon as possible.