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Posts Tagged ‘Internal Revenue Service’

It’s not a position where anyone wants to find themselves – owing back taxes to the IRS. But as we know, life happens. Things happen. Stuff falls through the cracks. Not everyone is as organized as to avoid owing back taxes. But when this happens – what is a person to do? How do they deal with the IRS when a person owes back taxes and the IRS is breathing down their neck?

The IRS. They are who they are. They have great government power and authority to collect taxes and use legal means to seize property, levy liens, throw their weight around like Jabba The Hut, and basically make anyone that owes back taxes miserable.

But the truth is that the IRS can be negotiated with. They are not so dim as to be unreasonable. The IRS can be negotiated with when the taxpayer in question is simply unable to pay the amount of back taxes that are owed, or the tax debt itself is questionable. But it’s simply not advisable for a taxpayer to attempt to negotiate with the IRS on their own.

What is advisable is to seek out the help of tax debt professionals. These firms are staffed with the sharpest minds in the field. They are skilled negotiators and are up to date on all the recent changes in tax law. They are your advocate. They are your ticket to getting out of the jam of owing back taxes to the IRS.

Tax debt professionals are your key to obtaining real tax relief. A simple online search for “tax relief”, “tax debt relief” or even “tax debt” will return results of the best in the business who are able to take your case on and go toe to toe with the IRS to get you the tax relief which you deserve.

God Bless America.

26 U.S.C. § 6330(e) contains a provision that is little recognized and underutilized by folks facing off with an Internal Revenue Service levy of their bank account or paycheck. That subsection provides in pertinent part:

“(e)  Suspension of collections and statute of limitations
“(1) In general
“… if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…”

The suspension of collection activities by timely asking for a Collection Due Process Hearing (CDPH) is a very effectual technique to end an IRS levy on a bank account or paycheck. I’ve drawn on this provision to end an IRS  levy in as little as two days. A short time ago I put a remark in my shopping cart that even a dancing bear could end an Internal Revenue Service  levy by a well-timed request for a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1).

However, a dancing bear would not be able to keep Internal Revenue Service collection activity postponed and most likely neither would most of us. In spite of all the waits while appeals are pending; and in spite of being able to retrieve whatever funds you had in the bank when the Notice of Levy arrived from the Internal Revenue Service; and despite the fact of receiving full paychecks during those delays; ultimately, the end of the line will occur and the  IRS (Internal Revenue Service) will move forward with collection activities as they were before the hearing was demanded. At the point this happens almost all the people will be right back where they started off; dealing with collection activity by the Internal Revenue Service. It is because of this harsh reality that I put up nine, no obligation videos, 4-10 minutes in length at www.irsterminator.com talking about strategies I have come up with that make keeping IRS collection activities suspended indefinitely a very real likelihood.

There are two aspects to winning a CDPH hearing: 1) Taking affirmative strategic action pointed at prevailing in the hearing as I discuss in the videos referred to above; 2) Avoiding raising issues that would bring about the loss of the hearing. Keeping away from losing matters is a matter of doing a little research and reviewing what issues have been raised in the past that lost.

Rohner v. U.S., 2003.NOH.0000145 (N.D.Ohio 2003) is the case that I will address in part in this article. Rohner lost his Collection Due Process hearing and appealed to the Federal District Court. I was able to find his case by searching the District Court data base at www.versuslaw.com. I made an hour and forty minute video about how to use Versuslaw to do research and that video is available for you to learn to do online legal research too at www.bearscart.com in the “law study” category.

In the section of the Court’s decision entitled “Factual and Procedural Background” the Court recounted:

“Although Plaintiff submitted Forms 1040 to the Internal Revenue Service (IRS) along with copies of Forms W-2 indicating his wage income for the years 1996 and 1998, he reported no income on the returns and attached statements containing frivolous arguments as to why he was not liable for an income tax for those two years…With regards to the 1998 tax return, the IRS then sent Plaintiff a letter dated May 24, 1999, advising him that a frivolous return penalty of $500 under 26 U.S.C. § 6702 would be assessed against him unless he corrected his position within 30 days…Plaintiff failed to correct the Form 1040 and the IRS assessed § 6702 penalty against him on September 13, 1999, with respect to the 1998 Form 1040…The IRS also accessed Plaintiff a § 6702 penalty on November 13, 2000, with respect to the 1996 Form 1040, because he submitted a Form 1040 for tax year 1996 showing no income with an attached statement containing frivolous arguments on July 21, 2000.”

So, part of what Rohner was trying to do was use the hearing to get out of paying frivolous return penalties. The IRS sent Rohner a Notice of Intent to Levy that informed him of his right to a CDPH hearing and he requested the hearing. After losing in the CDPH hearing, Rohner lost on appeal to the Federal District Court:

1) Rohner’s claim  that he did not obtain  a notice of deficiency respecting the § 6702 frivolous return penalty was declined as being without merit as there is no necessity that a notice of deficiency issue with respect to these penalties. The Court held that deficiency procedures do not apply to the assessment or collection of frivolous tax return penalties.

2) Rohner’s contention that he did not get a just hearing because the Internal Revenue Service neglected to comply with his demands for documents was rejected by the Court as groundless. The Court held that Section 6330 did not afford authorization for production of documents or other investigative demands in association with a CDPH (Colletions Due Process Hearing).

Rohner raised additional unfruitful issues on appeal which will serve as the basis of a different article. The Court ended up holding that the Internal Revenue Service’s administrative holding was to be upheld. Results such as this one have continually served me as an inspiration and not as a dissuasion. At least a court case like this serves up a warning with regard to future strategies. To furnish yourself the best likelihood of enjoying success study the 9 video recordings at www.irsterminator.com.

Follow me on Twitter.com/legalbear See you there.

Did the IRS Levy Your Bank or Employer?

There are probably not many feelings worse than the one that happens when your financial institution or your work give notice you that they have been served a Notice of Levy by the Automated Collections at the IRS allegedly ordering them to keep most all of your next paycheck or deliver the funds in your bank account to them. Actually, if the IRS has complied with the law, a Notice of Levy should never be a surprise. 26 USC § 6330 provides in pertinent part:

(a)  Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.

26 USC § 6330 provides this respecting the timing and manner of service of the notice:

(a)(2)  Time and method for notice
The notice required under paragraph (1) shall be-
(A) given in person;
(B) left at the dwelling or usual place of business of such person; or
(C) sent by certified or registered mail, return receipt requested, to such person’s last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.

When you get the aforementioned notices and study them timely, you should see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing (CDPH) is timely requested “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” This provision renders the request for a Collection Due Process Hearing (CDPH) a extremely effectual means to end an IRS levy on a bank account or paycheck.

In the instance in which a levy was received by an employer but the notice had not been served as required by the above statutes, I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to CDPH hearing request being sent. Now, employees knowledgeable about these provisions in the Internal Revenue Code (IRC) will be able to get all of their pay while the hearing is pending. Almost anyone can bring a halt to an IRS levy by timely requesting a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1). I make available the forms to competently request a CDPH hearing in a situation where the statutorily required notice has not been sent at www.irsterminator.com.

When you receive the notice, it is VERY important that your request for the hearing be made timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include:

“The notice required under paragraph (1) shall include in simple and nontechnical terms-
(B) the right of the person to request a hearing during the 30-day period under paragraph (2);”

However, if the IRS never served you with the required notice, it is impossible to find out when the 30 day period begins and ends. The free videos at www.irsterminator.com explain how to inform the IRS that their failure to serve you with the statutorily required notice renders your request for a hearing timely and entitles you to the suspension of collection activities including the levy at your bank or employer. Discussed on those videos are plans that I have come up with to keep collection activity suspended permanently which is the challenging part.

In order for the Internal Revenue Service to abide by the edict of Congress, they have got to first Certified Mail you what is called in the statutes a Final Notice of Intent to Levy made according to 26 USC § 6330(a)(1) which provides in relevant part that no levy may be made on any assets or right to property of anybody unless the Secretary has warned such person in writing of their right to a hearing under this section before such levy being made.

26 USC § 6330(a)(2) provides that the notice required under paragraph (1) shall be given in person; left at the residence or usual place of business of such person; or sent by certified or registered mail, return receipt requested, to such person’s last known address; not less than thirty days before the day of the first levy.

When you take delivery of the notice, it is crucial that your application for the hearing be made timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include notice to you of the right to request a hearing during the 30-day period under paragraph (2).

When you are given the aforementioned notice and read it you will see that 26 U.S.C. § 6330(e) provides that as soon as a CDPH (Collection Due Process Hearing) is timely requested “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” Requesting a Collection Due Process Hearing is the most successful way to block an IRS levy on a bank account or paycheck since suspension of collection activity upon such request is mandated by the law.

The IRS has a tendency to try and base your entire hearing upon what you put in that request. It is for this reason I recommend very strongly using the addendums that are part of my IRS Terminator package. I explain the importance of the addendums in the videos at www.irsterminator.com.

I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to the Collection Due Process Hearing request being sent. There is a little trick to getting such fast action which is explained in the IRS Terminator package. This makes it possible for the employee to never miss a full paycheck and for the bank depositor to retrieve their funds.

It is not difficult to block an Internal Revenue Service levy by timely applying for a CDPH as provided in 26 U.S.C. § 6330(b)(1). However, if appropriate steps are not taken to  come out on top in the hearing, eventually the IRS will get around to holding the hearing and in all likelihood hold against you and move forward on the levy. The IRS Terminator package is designed to give you the absolute best chance to succeed in your hearing.

It happens often that I have been told circumstances wherein the Internal Revenue Service sent a levy to an employer or bank  sooner than they sent the Final Notice of Intent to Levy. It is still feasible to demand a CDPH hearing in a situation such as this and get the collection action put off before the IRS takes your paycheck or bank deposits. There are forms in the www.irsterminator.com package designed to competently request a CDPH in a situation where the notice required by law has not been sent.

There are probably few feelings worse than the one that overtakes you when your financial institution or work place give you notice that they have been served or mailed with a Notice of Levy by the IRS instructing them to keep most all of your next paycheck or deliver the funds in your bank account to them. My IRS Terminator package makes available to you with the authority it is essential to have to render the situation as harmless as possible and eventually prevail.