Laws exist to protect taxpayers from confiscation of their assets. Likewise there are laws in existence which have specific provisions regarding the collection of taxes by the IRS. These laws are important because tax collection is the principal source of revenue for the Federal government. The amount that can be seized by the IRS varies and is dependent upon the outstanding tax due as well as the total of person’s assets. However, in most cases, there is a fixed cap of 25% of the salary. Since the calculation is based on a percentage, the amount seized could be more if the person’s paycheck is more and less if the paycheck is less. Attempting to arrive at some sort of equitable agreement with the IRS is the best way to minimize tax complications and lessen the burden of repayment of the outstanding amount. If the taxpayer is unsuccessful in negotiation, the last option available would be to immediately file for bankruptcy. Filing bankruptcy is therefore a certain method to stop wage garnishment.
If an individual files for bankruptcy then all collection activities of the creditors relating to the debt come to a grinding halt. Bankruptcy is often used as a weapon by the legal community to save their clients from the problems associated with a legal verdict. Also, the wage garnishment laws state that while the wages of any employee are being withheld, the employer cannot fire him. The law clearly states the protection provided to the delinquent taxpayers’ job in these situations. If the employer does terminate the taxpayers’ employment, he is subject to a fine of $1000. The wage garnishment laws are strict and specific and a taxpayer in default is advised to cooperate with the IRS if such an unfortunate incident does occur. Since everything is done with clear and specific consequence, failure to follow any federal guideline could cause further legal problems – which is the last thing desired.
If it is possible to satisfy the outstanding debts this should be done immediately. Once the debt is paid a person does not have the worry of getting sued by the creditor and having to fend off and stop wage garnishment. One must not make his creditor irate or ignore him. The taxpayer should try to explain his situation clearly and frankly to the creditor, citing specific reasons for his inability to make payments on time as well as proposing a solution. Initially opting for a lawsuit is not recommended. If an individual is in a healthy enough financial condition to pay off his debt within the allotted time period of 10 days from the date of judgment, he can stop wage garnishment immediately. Another way to utilize the wage garnishment laws is to make an appeal for one’s basic necessities like food, housing and healthcare. Declaring bankruptcy to stop IRS wage garnishment is always an option, but should be the last resort.
Jacksonville, 26th September, 2010 After much speculation, a spokesman for Confidential Tax Resolution has confirmed that the company will indeed continue their policy of “good faith” levy releases.
Last year the company attracted considerable attention within the professional tax debt settlement community when they broke with tradition by negotiating IRS bank and wage levy releases for their clients in need of IRS tax help before they’d received any fee for service. It was an unheard of gesture of trust and most observers were skeptical. “We definitely heard the rumblings from some industry insiders,” said Robert Ashley, the Client Care manager at CTR. “We’d sailed into uncharted waters for a tax help company with that decision and we didn’t know what to expect; but, so far, it’s been an unqualified success and was the right thing to do.”
For an industry which, by definition, attracts taxpayers who are in some degree of financial difficulty, the concept of relying solely on the integrity of their clients to fulfill their obligations to the company for tax help seemed risky, to say the least. “You know, we hear other companies talking all the time about their commitment to client satisfaction and putting their clients first,” continued Ashley. “At CTR, we’ve put our money where our mouth is.”
The problem is apparent: because of some long-standing, unresolved tax debt, a taxpayer suddenly finds himself with an empty bank account or a non-existent paycheck because the IRS has finally stepped in and seized those funds. It’s a frightening scenario, but one that is happening with more and more frequency as the IRS steps up its collection efforts. What is the delinquent taxpayer to do? Hire a professional for tax help? How? Hence the “Catch 22,” and, until CTR stepped up and offered to help these people, they were at the mercy of the IRS. “It was a sad situation,” Ashley added, shaking his head, “we saw families who literally had to decide between keeping their lights on and buying groceries – because they couldn’t do both.” Ashley then addressed the opinion commonly held by many in the industry. “Yes, there was some irresponsibility on the client’s part for letting things get that far,” Ashley said, “and they’ll admit that. But now all these people are really looking for is a fresh start. And this is a perfect time for a fresh start. So, yes, we’re proud to serve our neighbors by entering into the necessary negotiations with the IRS to secure the release of their funds. It’s what we do.”
So, in cases like this, CTR is basically working for free? Ashley smiled, “With a few exceptions, the clients we’ve represented to the IRS to get their funds released have kept their word to us and done the right thing. Typically, they’re actually anxious to pay us for the work we’ve done for them and will call us right away. It’s been very gratifying because we all know that bad things sometimes happen to good people, and,” he added, “at CTR, we’ve been privileged to serve some very good people.”
As long as their clients continue to take advantage of their second chance with the IRS and keep on doing the right thing for the talented tax professionals who helped them, the management at Confidential Tax Resolution sees no reason to abandon their policy of good-faith levy releases. It’s a unique way of doing business these days: a company that shows unqualified faith in their clients. Maybe it’ll start a trend?
For more information or to contact the tax professionals at CTR, visit their website: www.confidentialtaxresolution.com
Jacksonville, 28th September, 2010 In a move that will undoubtedly shake up the IRS debt settlement marketplace, Confidential Tax Resolution, a national tax relief organization headquartered in Jacksonville, Florida, has announced the addition of a division devoted entirely to IRS Tax Lien settlement.
Actually, the foray into the resolution of Tax Liens is not a new venture for CTR. “Not at all,” states Robert Ashley, Client Care manager for the company. “We’ve always offered tax lien removal and settlement as a part of our tax relief services to our clients,” Ashley added, “but because the tax lien is so unlike any other IRS collection tactic, we felt we needed a more specific, focused approach to better serve our clients.”
This isn’t the first time Confidential Tax Resolution has been recognized for innovation within the tax relief industry. Last year, they made news for their policy of releasing bank levies for their new clients before receiving payment. “It just didn’t make any sense,” Ashley laughed. “People needed to hire us, but couldn’t because their bank account had been seized by the IRS, but because their account had been seized by the IRS, they couldn’t hire us. It was a real Catch 22.”
According to the most recent statistics, the IRS has dramatically stepped-up collection efforts and are imposing ever-increasing penalties on delinquent taxpayers. The move is necessary due to the economic downturn and mounting Governmental debt. Citizens are definitely feeling the pressure as more and more delinquent taxpayers are receiving the dreaded IRS letter. But whereas most people are familiar with the problems associated with more familiar IRS collection tactics, such as bank or wage levies, the unique issues surrounding the tax lien are much lesser known and potentially more serious.
“Well, first of all, it’s much simpler to prevent one than to lift one,” Ashley relates, “but if it’s already in place, the IRS typically won’t lift it just because you ask. The IRS is a collection agency, after all, and they’ve placed the lien to secure their interests. The process to get the lien removed is specific,” Ashley went on to say. “The IRS must be convinced that a negotiated settlement between them and the taxpayer is in the Government’s best interest. Once that’s done, it makes sense for them to remove the lien. This involves a set of circumstances that are unique to each taxpayer,” Ashley concluded, “and attempting cookie-cutter solutions is a waste of time.”
Since CTR’s new Tax Lien Division was first put into place last month, they reportedly have had to reassign two more tax relief specialists into the new department. Apparently, as federal spending and federal collection both continue to spiral upward, tax liens will become more prevalent as an IRS collection tactic and the taxpayer should beware. At this point, the focused, specific approach toward tax lien resolution found at CTR appears to be a winner. More information can be found on the company’s website: www.confidentialtaxresolution.com.