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Is the IRS Garnishing Your Bank Account or Paycheck

  • Published: 2011-06-15 : Blue Tax.
  • Synopsis: The IRS sometimes uses its power to garnish wages and bank accounts to collect unpaid back taxes from account delinquent taxpayers

Main Document

More and more often, the IRS is using its power to garnish wages and bank accounts to collect unpaid back taxes from account-delinquent taxpayers.

This is the situation that Ms. Ward (Crisfield, MD) found herself in when she came to the Blue Tax offices.

Ms. Ward was being garnished by the IRS due to a back tax debt in the amount of $28,000.

The team at Blue Tax set out to get the garnishment released by negotiating a resolution that did not negatively influence her standard of living. This wasn't Blue Tax's first visit to this rodeo - they had every confidence that they would be able to pull this off.

First, Blue Tax sent the client their financial questionnaire and tax organizers.

They then called the IRS to map out their plan for resolution. With a little digging, the team at Blue Tax discovered that the government had filed Substitute for Returns (SFR) for Ms. Ward for tax years 2006 and 2007, which totaled $28,000.

Upon return of the client's welcome packet, Blue Tax immediately prepared the client's financial analysis and tax returns.

When the returns were completed, the resulting liability was reduced to $16,500! In one fell swoop, they saved the client over $9,000! Blue Tax then prepared all supporting documents to present the client's financial analysis to the IRS.

Once they had all of their bases covered, they made their final call to the IRS.

Blue Tax not only got the garnishment released immediately, they were also able to prove beyond the shadow of a doubt that the client did not have the ability to pay back her debt.

Blue Tax was able to get her approved for a currently non-collectible (CNC) status. Ms. Ward no longer had to worry about IRS collection activity.

For more information about Blue Tax and its ability to help taxpayers resolve their tax problems, please visit www.BlueTax.com or call (888) 310-5858 for a free confidential consultation.

Related Information:

  1. Negotiating a Tax Debt Settlement
  2. Tax Tips and Incentives for Taxpayers with Disabilities
  3. Cashing in Your Pension Early - Tax Implications


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