Questions About 1099

An IRS levy is a serious matter that can be challenging to overcome, but favorable results are achievable. It has been done before and can be done again. Cynthia Kuhne has helped thousands of individuals stop IRS levy action against their wages or bank accounts. The following are real life case studies from a few clients helped through the IRS collection process.

Case #152- Client owed approximately $20,000. The IRS sent a levy to his employer. The client had 1 unfiled return. After preparing that year I went to the IRS. I had 1 day to have the levy released before my client’s pay check would be levied again, leaving him very little to live on. The IRS stated they could not release the levy or set up a payment plan because there were actually 2 years that had not been filed. The IRS requires a taxpayer to be compliant with tax filing before releasing a levy or setting up a payment plan. Knowing the timeline I had, I asked the IRS representative if they would be willing to fax me over the information so I could prepare the return. The IRS actually waited for me to prepare the return, have it signed and faxed back over. My clients check was not garnished because I had the levy released the same day and faxed to his employer.

Case #526- A revenue officer was currently garnishing this client’s paycheck.The client had 3 years of unfiled tax returns and close to $285,000 in total tax debt.  My client stated he had approximately 3 weeks before his next pay check but that one would include a bonus of $21,000 in which the IRS would take. I worked with the revenue officer on the case and then the revenue officer was out during the next week. At that time my clients payroll let him know if they could not delay payroll for another 2 weeks and if they did not have a levy release by Friday, they would send the monies to the IRS. Since the revenue officer was out of town, my only option was to see if the manager would work with me. It just so happened that I had worked with him on another case so he was willing to work with me. The IRS levy release was faxed to the employer within the hour of the funds being levied.

Case #169- Client owed over $100K plus. The IRS put a levy on a joint bank account, held by the taxpayer and her mother. This is legal as long as the taxpayer name appears on it. The IRS took approximately $96,000 out of the account in one day. Of course my client and her mother were devastated. I was able to work with the IRS to release the levy and all of the funds were put back in the account. I then filed and Offer in Compromise for my clients to resolve the tax liability with the IRS.

Case #492- Payroll tax problems caused these clients to owe approximately $100,000 to the IRS. This was mostly due to penalties from the IRS not receiving the W-4’s for the employees for the year. My clients had been unsuccessful year after year of working with the IRS. A levy had already been issued by the IRS, who was able to collect nearly $37,000 from my clients. I worked with the IRS so that all penalties were wiped out. The IRS also sent back the $37,000, plus interest.

Case #316- The client’s total tax liability was over $200,000. They received a levy from the IRS at the place of their employment. I was able to have the levy released within a few days and proceed to set up a monthly payment plan that they could afford.

Case #458- My client owed approximately $100,000 to the IRS of that approximately $74,000 was due to my client not filing a tax return for one of the tax years. The IRS filed for the taxpayer that year. The IRS sent a levy to his employer when it was not paid. I prepared the return to override the IRS reducing the tax liability to $297 and was able to have the levy released within 24 hours.

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