IRS Garnishment Balance Status

[AZ-Tax]

New client came to me in June 2014 with a tax bill for returns that were never filed. I filed the tax returns but still a balance with the IRS. I was brought in very late and the IRS placed a lien on a Partnership the TP owns thus garnishing rent from the P'Ship. Does the IRS mail out some document(s) frequently to the TP reporting the amounts garnished and the balance and if so what is the name of the document or form?

[DaveinTexas]

2848 and E Services

Depending on how much work you want to do for this client and their ability to pay for your work, I would suggest the following:
1. Charge the client a retainer for a 2848. Use this form to gain access to Account Transcripts, you can either call PPS or obtain them from E-Services. Give a bit of time for the IRS to process the 2848 (about a week).

2. If the account balance is manageable for the client to obtain an Installment Agreement, suggest that he/she do so. This will lift the levy but if there are liens, the liens will remain until the balance is paid OR if the balance dips below $10,000 you can try to negotiate with the IRS and persuade them to remove the lien. Search this part of the IRM for $10,000; http://www.irs.gov/irm/part5/irm_05-012-002.html

3. If the UBA or balance with no penalties and interest (principal balance) is less than $50,000, the IRS will accept an agreement to repay the balance due as long as the agreement pays off the entire balance within 72 months. This assumes the client will file timely all subsequent returns and full pay the balance due of subsequent returns prior to April 15th.

4. Urge your client to get their act together; otherwise you can't help them if they are habitual late filers.

5. If the client was never late in the past, see if the FTA program will work on at least one of the tax years (most likely the first late year). Also, if the Partnership Return was late, use the FTA for that return as well.

Get that levy released and become the client's hero. You just might have a client for life. Good luck!

[ATSMAN]

How close is the nearest IRS office? If it is reasonable distance that you can drive it may be worth visiting them. Fortunately I am within 50 miles to the nearest IRS office and I have the client give me POA and we visit the IRS office to take care of business. Things don't get resolved the same day but it moves much faster than playing pony mail.

I had a bank levy removed within 3 days after a visit.