Yes, the IRS and state and local governments, such as Kentucky, Ohio, and Cincinnati, can levy independent contractors and self-employed taxpayers by seizing funds in their bank accounts and by seizing receivables directly from the taxpayer’s clients and customers. The tax attorneys and enrolled agents at Gatherwright Freeman can help you stop your tax levy now. Stop your IRS Levy, Ohio Levy, Kentucky Levy Now.
Generally, it may take the IRS longer to catch up with independent contractors and self-employed taxpayers because they do not receive wages, but the IRS will eventually catch up with these taxpayers and issue levies against their bank accounts and receivables. Here at Gatherwright Freeman about half of our clients who owe back taxes are self-employed or independent contractors. Unfortunately, the IRS has developed ways to collect taxes from just about everyone.
Can the IRS Levy the Business Income of Independent Contractors and Self-Employed Taxpayers?
Yes the IRS can levy the business income of independent contractors and self-employed taxpayers. In addition to levying independent contractors bank accounts. See how bank account levies work, the IRS can collect against these taxpayers by issuing levies directly to the taxpayer’s clients and customers. This requires some extra effort on the part of the IRS and is not always the most practical method of collection, but it is frequently done under the right circumstances, especially when a local revenue officer becomes involved in the collection process.
How does the IRS Identify the Customers of Independent Contractors and Self-Employed Taxpayers?
The IRS often identifies a taxpayer’s clients and customers by reviewing the 1099s the taxpayer receives. The IRS can also issue summonses to the taxpayer’s banking institutions to determine who is making payments to a taxpayer. Additionally, the IRS can issue a summons directly to the taxpayer and force him or her to give the IRS a list of their clients and customers. It is especially easy for the IRS to collect on the taxpayer’s receivables and business income when the taxpayer works for the same one or two parties all year.
If you are an independent contractor or self-employed taxpayer who has been levied by the IRS or a state or local government, such as Kentucky, Ohio, or Cincinnati please call us Stop your IRS Levy, Ohio Levy, Kentucky Levy Now. The tax attorneys and enrolled agents at Gatherwright Freeman can contact the IRS on your behalf to have IRS levies released.
