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Ronald J.
Cappuccio, J.D., LL.M.(Tax) Counsellor at Law |
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![]() Handling a Notice of LevyIf you have received a Notice of Levy from the IRS of an employee's wages or for monies owed to a creditor, you have obligations as well as rights. First, remember that the Notice of Levy is not for taxes that you owe, but rather is for taxes that may be owed by the person levied upon. Under Federal and State Law, a wage execution cannot be cause for terminating an employee. Who Has to Be PaidWage Execution If you owe money to a creditor and you receive a levy, you are required to discontinue making payments to that creditor. Nevertheless, you are not required to pay anything to the Internal Revenue Service unless you are going to pay that to the creditor. For example, if you choose not to pay the creditor for any reason, you do not have to pay the Internal Revenue Service either. The IRS can only collect monies that are actually due and owing to the creditor, and they cannot force you to pay additional monies, disputed monies, or monies that you have chosen not to pay the creditor for any reason. Your liability to the Internal
Revenue Service is only based upon a payment to the creditor instead of
the Internal Revenue Service after a Notice of Levy is issued.
The employee completes part four of the form
indicating their marital status and exemptions. As the employer, you
calculate the amount to be withheld from the employee's wages and
turned over to the Internal Revenue Service. Frequently, new Other Levies If you owe money to a creditor and you receive
a levy, you are required to discontinue making payments to that
creditor. Nevertheless, you are not required to pay anything
to the Internal Revenue Service unless you are going to pay that to the
creditor. For example, if you choose not to pay the creditor
for any reason, you do not have to pay the Internal Revenue Service
either. The IRS can only collect monies that are actually due
and owing to the creditor, and they cannot force you to pay additional
monies, disputed monies, or monies that you have chosen not to pay the
creditor for any reason. Your liability to the Internal
Revenue Service is only based upon a payment to the creditor instead of
the Internal Revenue Service after a Notice of Levy is issued. Conclusion ActionWage Executions1. Talk
to the employee directly, have the employee immediately complete part 4
of the wage execution to determine what the salary would be.
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