IRS Installment Agreement Changes Add to Taxpayer Pain

Sept. 3, 2010 - PRLog -- Tax Professionals are finding less flexibility in IRS treatment of taxpayers when setting up installment agreements.   IRS personnel have been instructed to insist on obtaining “down payments” on an installment agreement even prior to releasing a levy on wages.  This development is a new IRS enforced collection procedure that has been in the rules but has been rarely enforced by IRS collection personnel.  Mr. Poor, a taxpayer who did not file some returns and did not pay the IRS when it was demanded found himself with a wage levy quickly followed by a bank levy.  The IRS is using hardcore collection practices ignoring all hardships until Mr. Poor learns his lesson.  Of course the problem is Mr. Poor doesn’t suffer nearly as much as his family who has to bear life with no money, and consequently no way to buy food.  IRS personnel regard a hardship as “imminent eviction” or “loss of utilities.”  Mr. Poor’s immediate issues of no gas money to get to work, the possible loss of his now tenuous job due to the IRS levy, hold little sway with IRS collections.  After all, Mr. Poor had many years to file and come forward to the IRS voluntarily and chose not to do so.  Therefore the IRS has every right to seize money from his accounts and to issue wage garnishments and wage levies to enforce the law.  In this case, Mr. Poor never received the required notices of intent to levy which were sent to his last known address not once, but twice by certified mail from the IRS.

The IRS is now clear to levy wages, garnish bank accounts, file wage garnishments, attach receivables, and various other methods to enforce collection on the balance claimed.   All of this is at the discretion of the local office or collection unit. The amount determined on an IRS garnishment or IRS levy is on a year by year basis.  For example, several levies could be sent on the same taxpayer referencing different years.  At the same time, the IRS levy could be sent to more than one likely source of funds.  Mr. Poor works as a technician at a GMC Dealer, but the IRS does not know which one so the IRS sends a levy to all the GMC dealers in the area.

IRS levies and IRS garnishments are to be avoided at all costs.  If you get one, you need professional help and fast.  The IRS levy needs to be removed from your paycheck or bank account in exchange for your agreement to an installment agreement.   If you get a paycheck, The IRS can grab it and will take all but about $160 per week.   The IRS levy is designed to bring you to your knees and is only one tool in a toolkit of misery held by the IRS Collection Staff.

These changes to the IRS Collection scheme for installment agreements follow the guidelines, but not with a lot of room for error.  If you think your installment agreement the IRS is forcing on you is too high for you to make, you need a professional to fix it.
There are many types of installment agreements with the IRS as well as payment plans and other devices to avoid IRS collection tactics.  
IRSTaxFix.com

IRSTaxFix.com represents clients before the Internal Revenue Service.  The company is headed by Randall Anson, Enrolled Agent and retired Certified Public Accountant.

# # #

If you are looking to find the best solutions for your IRS back taxes, IRS help, offer in compromise then we provides you the Guarantee.