Contractor lifts a levy before payroll

A contractor’s operating account was levied the week payroll was due.

Situations like this rarely improve on their own. The right move is to get a licensed representative involved early, before penalties, interest, or enforcement escalate.

We negotiated an emergency release citing the hardship to employees.

How we resolve an IRS balance:

1. 1Pull the full IRS transcript. We order your account, wage, and income transcripts to see exactly what the IRS has on file, which years are missing, and how much is penalties versus tax.
2. 2File Power of Attorney. Form 2848 puts us between you and the IRS immediately, so collection notices and calls come to us and we can request holds on enforcement.
3. 3Bring filings current. The IRS will not approve any resolution until every required return is filed. We prepare the missing years accurately, claiming every deduction and credit you are owed.
4. 4Choose the right resolution. Based on your finances we select the best path — Offer in Compromise, installment agreement, Currently Not Collectible status, or penalty abatement — and document it with a full financial statement.
5. 5Negotiate and monitor. We submit the case, negotiate directly with the IRS, and confirm liens are released and penalties abated where possible.

The levy was lifted in time to make payroll and a plan was set up.

IRS tax resolution is the process of settling an outstanding tax liability and stopping enforced collection — liens, levies, and wage garnishments. When a balance goes unpaid, the IRS adds failure-to-file and failure-to-pay penalties plus daily interest, so a modest debt can double over a few years.

As a federally licensed Enrolled Agent firm, Libre Tax Service can represent you directly before the IRS under a Power of Attorney (Form 2848). That means we handle every call, notice, and negotiation on your behalf — you never have to speak with the IRS alone, and collection pressure is redirected to us.

What to know before you owe:

• The IRS generally has 10 years to collect a tax debt (the Collection Statute Expiration Date); the right strategy can run out that clock.
• Penalties can reach 25% of the balance for late filing plus more for late payment — abatement can remove a large chunk.
• You must be filing-compliant (all returns filed) before any settlement is approved.
• Not every offer is accepted — the IRS weighs your income, expenses, and assets, so accurate financials are everything.