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An IRS Form 688-A or W may be issued to Washington DC taxpayers if you have failed to resolve an outstanding tax debt. The form is sent to a third party, like your bank or employer, informing them that the IRS has a claim on your assets and results in a garnishment.
Contact the tax levy attorney at Pontius Tax Law immediately if you have received a Notice of Intent to Levy or the IRS has already seized your wages or other property. Depending on the circumstances, we could resolve your tax obligations through other means and restore your access to your property.
When a financial institution receives an IRS Form 688-A, it will freeze your account for 21 days. At the end of this period, the bank will release the money in the account to the IRS.
If you make arrangements to repay the taxes owed during the 21-day hold, the IRS may release the levy and allow you access to your funds. Our Washington DC team can contact the IRS after you receive a Form 688 and try to make acceptable arrangements.
All your funds, up to the amount that you owe the IRS, will be frozen when the institution receives the Form 688-A. Even if you do not have sufficient funds in the account on the day the institution receives the Form 688-A to satisfy the levy, any additional deposits or earnings that enter the account during the 21-day hold will not be frozen by the levy.
The IRS can garnish your wages. If the IRS sends a Form 688-W to your employer, it has at least one pay period before it must turn over wages, salary, and deferred compensation to the IRS.
Some of your salary will be exempt from the levy. You must fill out a Statement of Dependents and Filing Status within three days, which the employer will use to determine the amount of the exemption.
IRS wage and salary garnishments are continuous, meaning the employer will continue to divert funds from your paycheck until your debt is paid.
The best way to avoid a levy is to act as soon as you receive letters from the IRS demanding payment. You can discuss your situation with a Washington DC tax professional who could suggest options to resolve your debt before the Form 688-A or 688-W is issued.
The IRS is often willing to allow you to structure a payment plan. If you can show that paying the full amount owing is not within your means, a part-pay installment agreement or offer in compromise could allow you to resolve the debt for less than you actually owe. When you are struggling financially, the IRS may agree that your tax debt is temporarily uncollectable and suspend enforcement actions.
It is important to act immediately if you receive a Notice of Intent to Levy. A legal professional could still persuade the IRS not to issue the Form 688-A or 688-W if you are able to pay the debt or enter a payment plan. Once the IRS has seized your property, you may have fewer options.
Do not ignore IRS correspondences or letters. If you have received a Notice of Intent to Levy, or your bank or employer has received IRS Form 688-A or W in Washington DC, contact Pontius Tax Law immediately. We could help you resolve your debt in the most efficient way possible.
Pontius Tax Law, PLLC is a tax law firm that strives to resolve sensitive tax problems through trust, dedication and value. The law firm was founded by John Pontius with offices in Washington, DC, Rockville, MD, Bethesda, MD, Fairfax, VA, and Alexandria, VA. Mr. Pontius represents individual and business clients with sensitive and serious tax matters before the Internal Revenue Service and state taxing authorities. His client base is local, national, and international.
Over the course of his career, Mr. Pontius has represented businesses and individuals with complex tax issues in the following areas: FBAR examinations, offshore and domestic disclosures, FATCA, FIRPTA, tax planning, unfiled tax returns, release of tax liens and levies, trust fund recovery penalty, IRS and state audit examinations, as well as appeals, penalty abatement, U.S. Tax Court litigation, along with defense of tax fraud and evasion. If you require assistance from a tax lawyer, contact Mr. Pontius to discuss your situation.
