IRS levies and payroll?
The IRS levied my employers account and we are a small business and all that money was for payroll. Does anyone know if the IRS can not levy payroll funds if they are labeled payroll. The IRS say they can do whatever they want. Does anyone know if they can do this or not. I need a specific code if they can not levy payroll funds. Thanks for the help.
Public Comments
- Yes, the IRS can do whatever they want.
- The IRS can levy any funds or assets a company or person has if they let it get that far. If not, companies would put all their money in a payroll account when they knew they were about to have their tax bill paid involuntarily. The IRS gives plenty of notices and opportunities for taxpayers to take care of paying their tax bill. This should not have come as a surprise to your employer.
- Yes they can and your employer knew this was coming, the IRS sends a Final Notice of Intent to Levy 30 days before the levy is placed. Regardless of whether the bank provides the account balance information when requested or in response to a summons, the levy attaches to the funds in the bank account at the time the levy is served. Upon service of a levy by an IRS employee, the bank should immediately freeze the funds in all bank accounts containing funds to which the taxpayer is entitled. Claims to funds not yet processed against the accounts, such as checks, account charges or loan payments owed to the bank, may not be honored until the taxpayer deposits additional funds in the account or IRS releases the levy. http://www.irs.gov/businesses/small/article/0,,id=108341,00.html http://www.irs.gov/businesses/small/article/0,,id=126903,00.html
- What gives you the idea that they can't levy payroll?? Sorry, but the IRS comes first in the food chain, even ahead of employees. Your employer knows that and is planning poorly if he or she let that happen. They knew about the levy at least 30 days in advance (formal notice from IRS) and probably suspected it for a few months prior to that. I'd strongly suggest dusting off your resume and getting a job with a more reliable employer.
