The Why and Who of an IRS Tax levy: Considering this, millions of Americans (estimated 25-35 Million) owe the IRS money but only a small few experience a seizure. First, remember that the IRS is a huge government bureaucracy, we are talking big over 100,000 and they are tracking a little over 200 million workers. This means about 20,000 taxpayers per employees. Therefore, the odds in one sense are in your favor. In fact, of the entire IRS employee base less than a third works in the collections department. At one point, we estimated that the average collections officer had over 1,000 cases on his desk. What would you do if you were a government employee, union member and I a situation where it was almost impossible to be fired? What would you do if you knew doing your job was going to make someone else miserable? Most people in that kind of situation would do as little as possible and that is the way I think most collection agents work. As an unmotivated IRS collector you would go for the easy money, of course, who would not. So the easiest targets with the highest potential of collection become the “Who” of IRS seizures. What make a person an easy target is a combination of several issue? We will cover a few issues that make you easier and thus more susceptible to IRS seizure.
Easy to Find and Seize: If you or your assets are easy to locate then you are higher potential targets. Working at the same job that reports income to the federal government for a long time versus working at lots of different jobs especially if you are paid in cash or under the table. Living in the same location for long periods of time makes you easier to find. In fact, any financial part of your life at the same location moves you closer to the bull’s eye. Keeping at the same bank works against you as well. On the flip side, not banking at all and constantly changing jobs and residences make you difficult to find much less levy. Not many people want to live an unstable life like this and it’s not recommended. Easy to Deal With and Hit With a Tax Levy: We had a customer once who questioned everything the IRS did in writing for years. If they asked him for thus and so he would politely write back to the agent and ask him to state the statue requiring him to produce the requested item. He would always ask for ridiculously long turn around times. He would ask for the agent to sign responses under penalty of perjury (just like IRS forms) and if they failed to do so he would re-write the information and send it back to the agent with a “Under Penalty of Perjury” clause added and ask him to sign it a return it. No agent wants to do that. He just was difficult to deal with in every sense, hard to get on the phone, hard to talk to, always busy and wanting to call back (which he did, but ITRS agents rarely answer the phone) always delaying, asking lots of difficult questions for proof of everything IRS agents said, always wanting to talk to the boss, etc, etc, etc… Most agents simply gave up and went seeking easier game to hunt. He claims he used these tactics for over 20 years. The Social Security Number and an IRS Levy: Although originally the public was told the social security number would never be used as a tracking device, we were also told that income tax was just to fund WWI. If your are easy to find and deal with the next factor is being easy to collect from. If your accounts or paychecks are attached to your social security number, you are a very easy target. The amount in the account has little to do with the matter. All the IRS has to do is print up a form letter and you’re done. In fact, this is done via a gigantic computer nowadays. As you probably aware, it is very difficult to do anything without giving up you number. Owing over $100,000: If you are in debt to the Federal Government over $100,000 you are a potentially a higher target as well. Like any good fisherman, the IRS looks for the big fish. So the more you owe especially if it is over the $100,000 mark you are considered a “bigger fish” Bad Taxpayer – Behave Tax Lien not enough try a Tax Levy: Sometimes you can do something or even nothing to get on an IRS hit list. We had a client who doused an IRS agent with a bucket of water when he showed up at his door. This is not a good idea. Nevertheless, even sounding like what the IRS considers a tax protester can get you on the list. Careful sharing your tax views, thoughts about the government or perhaps anything with IRS agents. No need to get on the “Bad Taxpayer” list because they will try to get you to “Behave.”
|