Many times individuals who are my clients and potential clients come to me with several IRS tax Questions. Some of which can be more complicated than others and require a specialist to answer. Such as legal or true tax return questions where you may need an attorney or a tax prep specialist to answer your IRS tax questions. We can refer you to any resource you may need. None the less, some of the more common questions are below. Each Q&A can also be found on our FAQ page as well.
Q. Is the IRS able to levy my SSA (Social Security) income?
A. Yes, the IRS is able to levy any SSA income if you have an outstanding balance due. Essentially any Federally sourced income is in the sights of the IRS due to the fact the funds are coming from the Federal Government. If you owe the Federal Government the IRS can and will levy (including tax refunds or Federal Military pay, or pension pay). As it relates to the SSA income, the IRS will levy 15%.
Q. Is the IRS able to levy my bank accounts?
A. Yes, the IRS is able to levy bank accounts, however, they have to send out specified notices in order to do so (approximately 5). The IRS must issue a Final Notice of Intent to Levy prior to sending out levies. Keep an eye on the mail and open all IRS notices at all times. Remember, when the IRS freezes your bank accounts, it is very difficult to get the money back.
Q. Is the IRS able to levy a pension/IRA/or Retirement Account?
A. Yes, the IRS is able to levy the above accounts, however, they like to stay away from forced levying of retirement accounts. First and foremost the IRS likes to collect the early withdrawal penalty of 10% (if you are below the required age of course). The IRS also does not like to force people out of retirement monies. However, the IRS may ask and require someone to liquidate a portion or all of a retirement account under the appropriate circumstances
If you have IRS tax questions about any of the above get in touch with us right away at 720-398-6088. We will look forward to speaking with you and assisting you with your IRS issue!