irs back tax help

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Category Archives: IRS Final Notice of Intent to Levy (IRS Letter 1058)

irs back tax help needs your Help! The Tax Group Center is not affiliated with the IRS

Tax Group Center does not meet irs back tax help criteria.  If you know you need to take action, read my article “IF” you should hire IRS back tax help.  (You should not automatically.) Titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.

As usual, If you like the tone of this writing, I would like to compete for your business.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About irs back tax help.”

Another update:  2/24/2012, another search term:

  • “does the tax group center speak to the irs?”  Not if you have not already paid them and given them a power of attorney.  If they are claiming they have spoken to the IRS prior to you hiring them, they do not.  

Update:  From yesterday 2/6/2012, I saw the following search terms:

  • “tax group center took money then intent to levy sent by them”
  • “does tax group center cause trouble for taxpayers”

I would very much like to speak to anyone who is researching Tax Group Center about their marketing efforts.  Please contact me.  When combined with search terms below, it’s cause for concern.  They are not connected to the IRS, and do not have the power to issue levies.

I was looking at my search terms for my site and saw the following:

  • is tax group center connected to the irs
  • tax group center complaints”
  • tax group center in ca can they issue intent to levy notices for the irs

If this is who you are talking about:  Tax Group Center Review, BBB, Los Angeles, CA

  • “We received a post card by mail advertising Tax Consulting service to our company. The card included our company name and how much money they anticipate we owe the IRS. We do not want our company tax information advertised for all to see and read.”

They cannot issue an IRS levy and they are not affiliated with the IRS as a collection agent.  If they are making those kinds of claims, I would steer clear of them.  If a competitor of theirs is saying that, steer clear of the competitor.

If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com.

If you owe back taxes and want to sue the IRS, you need to read this first.

All IRS Back Tax Help comments are in blue.  This post is about whether or not taking the IRS to court is a good idea when disputing the Trust Fund Recovery Penalty (TFRP) collection process.  If you have questions about this post, please reference:  BP #41.

If you know you need to take action, read my thread about whether or not you should hire someone (You should not automatically.) titled “Owe IRS back taxes?  When, who, and how do I hire IRS back tax help?” before you do anything else.  

Our source and full text for this public record: 

http://www.leagle.com/xmlResult.aspx?xmldoc=In%20TCO%2020111219E39.xml&docbase=CSLWAR3-2007-CURR

The excerpts below are heavily edited so click on the link above if you want to see every thing that happened.  Potential clients often want to sue the IRS for the enforced collection actions they are experiencing (i.e. tax lien, bank levy, asset seizure, etc…)  People get so mad at the IRS’ actions; they lose sight of the goal which is getting this tax problem solved so you can move on with your life.  In this case, the amount of back taxes owed is not in dispute, only the manner in which the IRS attempted to collect the Trust Fund Recovery Penalty.

Summary: 

Business owner closed a business with trust fund taxes still owed, roughly $10.3mm in past due trust fund tax.  The IRS made the “willful & responsible” determination and personally assessed business owner and CFO for overdue corporate tax.  IRS then filed tax lien and proceeded to set levy process in motion.  Business owner then sued IRS for procedural violations and won

Result? 

Business owner and CFO owe the IRS $10.3 million dollars.  No difference.  In the time it took to get to this result, they entire liability could have been handled, and today they would debt free from the IRS.  Instead, today, a decade later, they still owe the entire Trust Fund Recovery Penalty.  Don’t get caught up in the “fairness” of the collection methods.  There are no surprises with the IRS collection process, they tell you what they are going to do, how they are going to do it, and then they do it. 

Discussion:  

Instead, focus on a real tax solution that will solve the IRS problem for good.  Excerpts will be in quotes and in black text.  Our comments are in blue. 

“Conway was National’s chief executive officer (CEO), its president, and chairman of its board of directors during the tax periods at issue. Nakano was National’s chief financial officer during the tax periods at issue.”

  • We get this question a lot.  Yes, if you are a corporate officer in any type of corporation you may be held responsible for the TFRP. 

The IRS “…determined that petitioners were responsible for National’s failure to pay the excise taxes. On March 14, 2003, respondent notified petitioners that he proposed to assess TFRPs against them. On May 9, 2003, petitioners filed protests of the proposed TFRP assessments with IRS Appeals. Almost 3 years later, on March 23, 2006, IRS Appeals notified petitioners that it had rejected their protests. Five days later, on March 28, 2006, TFRPs were assessed against petitioners.”

  • This was a good move by the owner’s representation.  Please note, none of this took place in court, it was purely administrative.  The attorneys knew their client would not be able to avoid the personal assessment forever, but this keeps the IRS from pursuing any other enforced collection against the corporate officers for the duration of the appeal.  At this point, once the client is safe, get a solution in place, whether it’s an Installment Agreement, Partial Payment Installment Agreement or Offer in Compromise.  If that had happened at that point in time, they would be done with their IRS tax problem today. 

The IRS “sent Nakano a Form 1058, Final Notice—Notice of Intent to Levy and Notice of Your Right to a Hearing (levy notice). The levy notice reflected respondent’s intent to levy on Nakano’s property and rights to property to collect the TFRPs assessed against him.”

  • This is where the IRS made their procedural mistake that cost them the case.  They then filed the Tax Lien.  If you have received a certified Final Notice of Intent to Levy, you need to take action and begin the appeals process to keep the IRS away from your bank account and other assets.

“Nakano and Conway timely requested CDP hearings on June 16 and July 3, 2006, respectively, to contest the proposed levy and NFTL filing. At the request of petitioners’ counsel, they received a joint CDP hearing. In their CDP hearing requests, petitioners claimed the following: (1) The TFRP assessments were invalid and (2) respondent failed to issue notice and demand for payment within 60 days of the assessments, thus precluding him from collecting the TFRP assessments via lien and levy.6 ” 

  • Two things here:
  • 1.)     They received a joint hearing.  If you are being personally assessed and you want to fight these together, you can.  Sometimes we get hired because one corporate officer or owner has hung the others out to dry.  In that scenario, the person who gets representation first usually gets the IRS’ favorable ruling.  If you get tax help, it does not automatically mean the other owners/officers get the same help.  Make sure you representation understands what you want. 
  • 2.)    No Final Determination of Willful and Responsible parties was sent out.  The next quote is straight from the Internal Revenue Manual:  “After Letter 1153(DO) and Form 2751, Proposed Assessment of Trust Fund Recovery Penalty, have been properly delivered (IRM 5.7.4.7), the responsible party has 60 days (75 if the letter was addressed outside of the United States) from the date of the mailing of the notice or the date of personal delivery to respond.”
  • Irs.gov link:  http://www.irs.gov/irm/part5/irm_05-007-006.html

Conclusion

If you owe back trust fund taxes to the IRS, the corporate veil has been pierced, and the Revenue Officer is seeking to personally assess you with the Trust Fund Recover Penalty, your attorney’s primary responsibility is to monitor the proceedings and capitalize on errors made; at all times, keeping their eye on the ultimate goal of settling the IRS tax debt.  However, it appears in this scenario that all parties got involved in the fight and lost sight of what was best both for the government and the taxpayer.   

Will the IRS notify me before a bank levy? Letter 1058 Q&A #3

All IRS Back Tax Help comments are in blue.  This post is about the IRS Final Notice of Intent to Levy (IRS Letter 1058, IRS Notice CP 91, IRS Notice CP 298, IRS Notice CP 90, IRS Notice CP 297, & IRS Notice CP 504) We get a lot of private questions, and here are some summarized responses.  This is the third post for Q&A about the Final Notice of Intent to Levy.  Good reading if you’re looking for information.  If you have questions about this, please reference this as BP #39.  

If you know you need to take action, read my thread about whether or not you should hire someone (You should not automatically) titled “Owe IRS back taxes? When, who, and how do I hire IRS back tax help?” before you do anything else.  

 As usual, if you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”. 

Question:  Does the IRS intent to levy final notice have to be sent certified mail?
  •  Answer:  It does not.  It can be hand delivered by the IRS Revenue Officer to the address of record.  However, if it’s not hand delivered by them, it must be sent certified mail.  Refusing to sign for certified mail is not a defensible position.  The IRS’ only requirement is to attempt to deliver it to the address of record. 
Question:  Will submitting an IRS Offer In Compromise (IRS Form 656) stop an Intent to Levy Notice?
  •  Answer:  Yes.  When you submit an IRS Form 656, Offer in Compromise, it stops the entire IRS collection process.  An IRS bank levy, or any other kind of IRS levy is suspended.  If the IRS OIC is accepted, any IRS Final Notice of Intent to Levy Is void.  If the Offer in Compromise is rejected, the IRS Intent to Levy (IRS Letter 1058) is actionable. 
 Question:  What if the IRS doesn’t give a final notice for a levy?
  • Answer:  The IRS IS legally required to attempt to deliver an IRS Final Notice of Intent to Levy to the last known address of record.  If the IRS failed to meet this requirement, you have immediate recourse and you should take it.  If you have a bank account levy, or any other kind of levy for that matter, take action now.  If the  IRS failed to adhere to procedure, you have a great deal of leverage. 
Question:  Will the IRS notify me before a bank levy?
  • Answer:  Yes.  The IRS is required by law to deliver an IRS Final Notice of Intent to Levy.  Letter 1058, or Notice CP 297 or 298.  The IRS will deliver this through certified mail, or by hand.  If you do not think this happened, it’s worth fighting.  Contact us or some other form of representation to figure out how. 

Got an IRS Final Notice of Intent to Levy? FAQ 1

All IRS Back Tax Help comments are in blue.  This post is about the IRS Final Notice of Intent to Levy (IRS Letter 1058, IRS Notice CP 91, IRS Notice CP 298, IRS Notice CP 90, IRS Notice CP 297, & IRS Notice CP 504) I get a lot of private questions, and I thought I would summarize my responses here.  Good reading if you’re looking for information.

If you know you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “Owe the IRS Back Taxes?  When, Who, and How to Hire IRS Back Tax Help” before you do anything else.  

As usual, if you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

Question:  I received an IRS Final Notice of Intent to Levy (IRS Letter 1058) is my credit already ruined?

Answer:  No client has ever reported a drop in credit score after an IRS bank levy.  However, if an IRS Tax Lien is filed, clients have reported a 50-100 point drop in credit score. 

 Question:  What is an IRS Intent to Lien?

Answer:  There IRS does not have a formal intent to lien notice.  It does state in several other notices that they may file a lien but there is no timeline associated with it.  The IRS does have a formal letter for an intent to levy.  It’s titled “IRS Final Notice of Intent to Levy”  (IRS Letter 1058, or an IRS Notice CP 297/298) and must either be hand delivered by the Revenue Officer or through certified mail.  

Question:  What if the IRS sent a Final Notice of Intent to Levy to the wrong address?

Answer:  If the IRS sent Final Notice of Intent to Levy to the wrong address because of a mistake they made, you have valid appeal grounds.  If the IRS sent the IRS Letter 1058 to an old address you have given them, and you have not updated your address, the IRS will continue forward with the Levy process.

Question:  After you receive a Final Notice of Intent to Levy, IRS Letter 1058, how long before the IRS levies your bank account?

Answer:  The IRS may levy your bank account 30 days after the date on the Final Notice.  You must assume they will.  So minding your account balance is important.  If it does not happen on day 31, it could happen any time over the next 6 months.  It’s time to start solving the overall problem.  

Question:  Are 941 Payroll tax Final Notice of Intent to Levy letters the same as all others?

Answer:  Yes.  All IRS Intent to Levy letters mean the same thing regardless of tax type. 

Question:  Can you go to tax court if you receive an IRS Final Notice of Intent to Levy?

Answer:  (IRS Notice CP 90/297)  You can go to court if you would like.  Going to court to fight intent to levy is extreme.  We would recommend you use the appeal included with the intent to levy.  It is a Collection Due Process Appeal (IRS Form 12153).  Be wary of an attorney who encourages you to go to court before you have exhausted your administrative appeal rights. 

Why did I get a Final Notice of Intent to Levy via Certified Mail?

All IRS Back Tax Help comments are in blue.  This post is about the IRS Final Notice of Intent to Levy (IRS Letter 1058, IRS Notice CP 91, IRS Notice CP 298, IRS Notice CP 90, IRS Notice CP 297, & IRS Notice CP 504) and what the differences are between each.  Each type of Intent to Levy are addressed in individual posts as well. 

If you know you need to take action, read my thread about whether or not you should hire someone (You shouldn’t automatically) titled “Owe the IRS Back Taxes?  When, Who, and How to Hire IRS Back Tax Help” before you do anything else.  

As usual, if you like the tone of these posts, contact me for consultation.  I can be reached at irsbacktaxhelp@gmail.com.  Before you email me, please click on and read “About IRS BACK TAX HELP”.

IRS Letter 1058:

  • The IRS Letter 1058 exposes all of your assets to seizure.  Bank accounts, client receivables, & property can all be taken 30 days after this letter is sent out.  It also means the IRS is actively looking for your assets so they can levy when they feel it’s appropriate.  It also notifies you that they may file federal tax lien. 

http://www.irs.gov/individuals/article/0,,id=185720,00.html

IRS Notice CP 91 & CP 298

  • The IRS Notice CP 91/298 exposes 15% of you Social Security Benefits to seizure.  The IRS can take no more than 15%.

http://www.irs.gov/individuals/article/0,,id=136852,00.html

IRS Notice CP 90 & CP 297

  • The IRS Notice CP 90/297 is a catchall that is typically sent out after you have defaulted on an installment agreement.  “any federal payments due you, such as contractor/vendor payments, OPM retirement benefits, SSA benefits, salary, or employee travel advances or reimbursements because you still have a balance due on your tax account. Property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income are also subject to levy. It is also telling you that we may also file a Federal Tax Lien, if we have not already done so.”  People are always surprised to find out they can take SSA and 401k assets.  They mean business. 

http://www.irs.gov/individuals/article/0,,id=136851,00.html

IRS Notice CP 504

  • The IRS Notice CP 504 is a precursor to all the actual types of Final Notice of Intent to Levy.  If this is the only letter you have received, and no other letters have been sent via IRS certified mail, it also means you have more than 30 days to prepare. 

http://www.irs.gov/individuals/article/0,,id=234674,00.html

All of these Final Notices of Intent to Levy can be diffused.  But you must take action to make that happen.  Obviously, receiving any of these IRS letters or notices is a problem.  It means things are spinning out of control and you need to make dealing with the IRS a priority.  These IRS notices are a warning that they are going to make it your number one priority by making it very difficult to run your business or work in 30 days.  Sometimes the IRS does not take levy action on day 31, which lulls people into a false sense of security.  Do not let this happen to you. 

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