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Can the IRS ask a person to pay in full if they already have a $400/month wage levy on the same tax year?
Anonymous7 views4 answers
The IRS lumps a number of years into a levy(ex. 2010, 2011) and a $400 payment is established through levying wages. Later, they apply a refund(for say 2014) to the 2010 amount and send a bill asking for immediate payment of the 2010 balance. It doesn't sound correct since there is already a payment system in place for the 2010 taxes owed.
An IRS payment agreement is subject to change & is not permanent. There are also many reasons the IRS will treat the payment agreement as defaulted. Refunds while on a payment agreement are applied to the debt & not refunded. Perhaps you should seek legal counsel to help you.
Eubert Marc Torrefiel HilarioImmigration AttorneyMorristown, NJ ·
The IRS has several options at its disposal to collect unpaid taxes, and not paying out any refund and applying the amount to outstanding tax obligations is one of them. Depending on the circumstances, IRS would also pursue other collection options despite an agreement already entered with it. To fully understand your options in settling your tax obligations, I suggest that you speak to a tax lawyer so you could be guided accordingly.
A levy is not the same as an installment agreement. They are still permitted to pursue other collection efforts, including asking for full payment. As far as the IRS is concerned, you are just ignoring them and they are pursing involuntary collection efforts to get paid.
An installment agreement would typically be preferable to a wage levy. First, the payment might be lower than the levy amount, depending on the details. Second, it will protect against further collection actions, such as a levy on a bank account. Third, it keeps your employer out of your personal matters.
