Due to any reason you owe unpaid taxes, here the IRS exercising its authority collects what’s owed through various enforcement methods. Usually these two are most common, one is bank levies and other is wages garnishments. Here you need to understand the differences between these two, how to respond if you are facing these issues. after understanding you can protect your finances.
World Tax and Accounting has expertise in helping individuals and businesses across the U.S. find effective tax resolution services to manage or stop IRS collections. Let’s start to know about these two actions, how they differ, and what you can do to handle them effectively.
What Is an IRS Bank Levy?
If you are a tax defaulter, you should understand the Internal Revenue Service seizes can funds directly from your bank account to cover unpaid taxes. This is IRS Bank Levy. When the levy is issued your bank is required to freeze your account for 21 days before sending the funds to the IRS. This is the time where you can take action in the 21 days. You can set up your payment plan, otherwise you can take help from a professional consultant. If you couldn’t do this in the given time, it becomes much harder to recover the seized money. If you’re wondering how this impacts your financial standing, you can read: Can an IRS Bank Levy Affect Your Credit Score?
What Is an IRS Wage Garnishment?
We can describe the IRS wage garnishment like that when the IRS instructs your employer to withhold a portion of your paycheck and send it directly to the government. This procedure continues until the unpaid taxes are paid in full, or then another resolution is reached. This is different from bank levy. Bank Levy is a one time procedure, while wage garnishment is ongoing. Due to the IRS wage garnishment you can face struggle to meet basic expenses. If you want to understand what situations can trigger this, read 9 IRS Red Flags That Could Lead to Wage Garnishment.
Differences Between an IRS Bank Levy and Wage Garnishment
IRS bank levy and wage garnishment, both methods are used for the IRS to collect unpaid taxes, but the procedure is different. In the Bank levy the IRS takes money directly from your bank account, and gives you 21 days time to resolve this issue.
While we talk about wage garnishment, it involves taking a portion of your paycheck on an ongoing basis until the full balance is paid. Here is a little advantage as compared to IRS bank levy, in the wage garnishment still allows you to receive part of your income.
Anyways, if you take action at proper time and contact a professional like World Tax and Accounting you can often be stopped or reduced through timely negotiation and professional IRS tax resolution help.
You can Handle an IRS Bank Levy:
After receiving notice of a bank levy, you have to take action in a limited time. Here World Tax and Accounting can help you in this regard.
- Our team members can contact the IRS on your behalf to request a levy release or a temporary hold.
- Experts of our team can evaluate your financial situation and determine if you qualify for an IRS tax relief program, such as an Installment Agreement or Offer in Compromise.
Our team will contact the IRS and negotiate directly with the IRS to remove the levy and set up a manageable repayment structure.
On time action can often stop the IRS from seizing your funds or help you recover frozen assets.
You can Handle IRS Wage Garnishment:
In the wage garnishment, you require professional negotiation and fast action. World Tax and Accounting provide personalized IRS wage garnishment help designed to stop or reduce the amount being withheld from your paycheck.
- Our team communicates with the IRS to establish a payment plan.
- We file for hardship status if garnishment creates financial strain.
- We explore tax settlement options to reduce the total balance owed.
World Tax and Accounting work closely with both the IRS and your employer, and ensure compliance and relief as soon as possible.
For IRS Bank Levy and Wage Garnishment Help: World Tax and Accounting Ready to Help You
If you’re facing an IRS Bank Levy or Wage Garnishment, don’t wait for the situation to get worse. Timely action can protect your finances and stop IRS collection efforts before they escalate.
Contact World Tax and Accounting today or schedule a consultation with our experienced tax professionals. Our team will review your case, negotiate directly with the IRS on your behalf, and help you achieve financial recovery, peace of mind, and lasting IRS relief.