Common Confusion Series: What is a Levy
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes (or make arrangements to settle your debt), the IRS can and will seize and sell any type of real or personal property that you own or have an interest in. For instance,
IRS does often seize bank accounts
IRS could seize and sell property that you hold (such as your car, boat, or house), or
IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).
The IRS will release a levy under the following circumstances:
The levy is proven to create an undue hardship/burden upon the taxpayer
Payment of liability in full
Tips to Audit proof your tax records.
Every Taxpayer we talk to hate the keeping records part of the tax system, but it’s critical to your tax health.
It’s also important to your business health. Good records help you monitor and improve your business.
We never depend on the IRS for mercy when it comes to tax records. There is never the word “Mercy” with the IRS, it’s just not in the tax code. You have no choice but to get your records right.
Getting your tax records right is not difficult when you know what to do.
Here are a few tips from the Experts at Taxation Solutions:
1. Do not commingle activities in your checking accounts maintain a separate account for your Trucking business.
2. Record deductible expenses daily. We heard you screaming when you heard the word Daily it’s a good rule of thumbs so you remember the reason for the expenses.
3. Record required details of Travel & entertainment. Regardless...
You may have heard this question asked on the All Nighter program on 650 am WSM Nashville with Marcia Campbell. Our Founder and President Barry G. Fowler, EA answered this question.
Yes. A payroll tax liability can be assessed against anyone who "willfully" fails to collect or pay the IRS the withholding taxes, under the Trust Fund Recovery Penalty. Being a trust fund tax means that the employer is obliged to collect these taxes and send it to the IRS. The party responsible must have known about the unpaid taxes and have "willfully" failed to pay the IRS. This can be a significant problem for businesses that use the taxes to keep itself afloat.
Protect yourself call us today! we can help you through the maze! We not only stand with you but between you and the IRS!
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