In case you are on prime of your tax debt state of affairs, diligently overview letters from the IRS after they arrive, and keep good communication together with your Income Officer or ACS, you’ve gotten an enormous benefit over folks that do not. In brief, you already know what’s coming.
One in all issues that any good tax consultant does for shoppers, clearly, is to watch these communications and keep on prime of them. Correctly timing deadlines and staying barely forward of the IRS is without doubt one of the consideration to element issues that we do in an effort to get as a lot of a leg up as potential.
In case you are doing this form of monitoring your self, likelihood is you’ll know when a checking account levy is coming. A checking account levy by the IRS requires your financial institution to take any and all funds in your account on the time the levy is processed, and maintain them for 21 days. After that 21 days, the financial institution should ahead these funds to the IRS. Deposits you make on the enterprise day AFTER the levy is processed aren’t topic to the levy, solely the funds within the account on the date that it hits are topic to the levy.
You possibly can reap the benefits of this reality, coupled with how one financial institution specifically processes levies. I’m under no circumstances endorsing this explicit financial institution and don’t have any affiliation with them myself. Nonetheless, Wells Fargo accounts have a profit relating to being levied by the IRS. Wells Fargo receives all levy notices for all of their operations nationwide at a central workplace in Phoenix, AZ, which is the place their authorized processing crew is. As a result of quantity of incoming levies, it takes Wells Fargo 2 to three enterprise days to course of the levy and difficulty a replica to your native financial institution department.
You possibly can reap the benefits of this reality if, as beforehand talked about, you might be sustaining good communication with the IRS and diligently reviewing notices. Your mileage might range, after all, however in my expertise with shoppers it isn’t unusual for the taxpayer to obtain their copy of the levy discover BEFORE the Wells Fargo authorized crew has really processed it.
What does this imply to you? If you already know the levy is coming, it supplies you a chance to make it possible for no checks are going to bounce and to tug cash out of the account earlier than the levy really hits.
You should use this technique to guard your self when you have money circulate, however aren’t financially in a position to change into present with Federal tax deposits or estimated tax funds. Whereas the IRS clearly frowns on this form of motion, for many individuals it could be their solely option to keep away from shedding their dwelling or being unable to feed their households.
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