Irs lien
 

So a friend of mine was in negotiation with the IRS over some 50k that she owed. the plan was for her to pay it back over 3 years, today she got an email from her company that they sent them a wage garnishment letter for the 50K

But on top of that she checked her bank account and they took the full 50K out three days ago, does the IRS just use a shotgun approach she wants to know if they will put 20k back and take payments my thought would be why would they give back money that is owed that they have but anyone have any experience with it?

Why would they do a payment plan if she had the funds?

she does not really her average credit card bill is around 15k plus she has 12k in checks/payments currently going out.

turns out there is a 21 day hold period where the bank basically puts the $$ in a freeze so that you can't use it but the IRS also can't get it, sh is hoping to pay 10k upfront then pay the rest on a plan.

For anyone thinking that the IRS will not catch up with your her oldest tax year is 2006 that they are going after her for.

I've always heard 7 years..... which would be 2006.

it sounds like the negotiations didn't go well [for her].

Exactly.

And if she has the money and they now have it, there isn't anything to negociate.

Just because your friend thought she was negotiating doesn't mean the IRS was. :)

While I don't knowing the particulars of your friends situation, wage garnishment and bank levies by the IRS are usually the last steps in a long process. If she has the money, she has to show why she can't pay in full, I would suggest getting a tax attorney if she hasn't already.

Sounds like a deadbeat to me.

she has to call the irs to take lien off

I wonder if i can negociate my taxes. I have the money, i just don't want to pay it all :P

Sounds like she needs to start negotiating with the other people she owes money to. The IRS has already called "dibs".

first mistake: not paying her taxes

second mistake: giving IRS her bank account number

...because they didnt have it already....

even if they did they cannot just withdraw the money from it. Grounds for a lawsuit. Plus the only reason they did have it was probably due because it was written on a tax form with e-refund.

Uh...yes they can and they know every account associated with every SS# and EIN, you give it when you open a bank account.

IRS does not need a judgment. I think you do not understand the collection authority they have.

Many certified letters would have came stating they were going to levy/garnish accounts/wages.

She should call the number on one of those letters, all that stuff happens automatically when extensions for the plan to be accepted end and that's what it sounds like happened it hadn't be approved yet and time allowed ran out, she needed to be more diligent in following up with them. When she calls they will have account notes if agreements are being processed.

I agree. This is what probably happened. IRS probably got a judgement entered against her after she did not show up to court.