Can The IRS Garnish My Business Income Directly From My Client?

[Mike_Knight]

What is the name of your state (only U.S. law)? Wisconsin

I owe back taxes because I barely make any money in my only income from cleaning offices. I just had a client call me saying the IRS contacted him to levy any income I make from them. It isn't a job. I'm an independent contractor. That's not right to mess around with people's business like that and they never notified me at all first that they were going to contact my clients. I thought first they''d notify me they were going to take money from my bank.

Update: I think the IRS is mistaking my client as being my employer becuase he got the six part Form 668-W Notice of Levy on Wages, Salary, and Other Income which is mailed from the IRS to the employee's employer to attach or garnish the employee's wages. He said the IRS wants him to turn over all the money owed to me until the nearly $2000 debt is paid which will take 10 months. I've been told by a few people that they must serve a new levy each month. I don't earn a wage. I submit a bill and they pay me. I wonder if they'll figure it out when they only get $200 and then nothing after that because I simply won't bill the client again. Hell I'll work for them for free. It's not that hard a job anyway.

 

[Zigner]

What is the name of your state (only U.S. law)? Wisconsin

I owe back taxes because I barely make any money in my only income from cleaning offices. I just had a client call me saying the IRS contacted him to levy any income I make from them. It isn't a job. I'm an independent contractor. That's not right to mess around with people's business like that and they never notified me at all first that they were going to contact my clients. I thought first they''d notify me they were going to take money from my bank.

Yes, they can do it. Don't mess with the IRS.

 

[Mike_Knight]

I've never heard of that

I can't even find reference for it online. I know people who work for an employer and earn a wage can be garnished but I'm self-employed and only file 1099-MISC for my business income. I earn no wages and only pay self-employment taxes. It's rather odd they would go after one client so far where I earn a measly $200 a month instead of going after my bank account.

 

[tranquility]

Once the IRS gets to actually levying things, their collection ability is unmatched. If they can do it in this instance (I believe they can.), would require review of the facts by a professional. However, until you do that, they will continue their collection efforts.

 

[irsos]

What is the name of your state (only U.S. law)? Wisconsin

I owe back taxes because I barely make any money in my only income from cleaning offices. I just had a client call me saying the IRS contacted him to levy any income I make from them. It isn't a job. I'm an independent contractor. That's not right to mess around with people's business like that and they never notified me at all first that they were going to contact my clients. I thought first they''d notify me they were going to take money from my bank.

First, they can do it but they are required to send you notice. It is likely they sent notices to an old address. This type levy only attaches to money owed at the time the levy is served. If they did not owe you any money then, they do not have to send the IRS anything. You could invoice them the next day and that invoice would not be affected.

They can levy again and will go after your bank eventually. You need to contact them to make arrangements to make the collection actions stop. A professional with experience in IRS collections is recommended.

 

[Mike_Knight]

First, they can do it but they are required to send you notice. It is likely they sent notices to an old address. This type levy only attaches to money owed at the time the levy is served. If they did not owe you any money then, they do not have to send the IRS anything. You could invoice them the next day and that invoice would not be affected.

They can levy again and will go after your bank eventually. You need to contact them to make arrangements to make the collection actions stop. A professional with experience in IRS collections is recommended.

Unfortunately I had just left an invoice the day before. It's quite a coincidence but then again maybe they assume billing on the first of the month is common. I'll have to change my billing date.

I was expecting the bank and also luckily I have no assets. It's the main reason why it's never bothered me to have any type of savings. I always figured the IRS would steal it anyway.

Frankly the taxes are just to high. I make exactly enough to live off of and I'm certainly not living any type of luxurious lifestyle.

 

[tranquility]

I agree taxes are too high. You don't get to determine their amount, it's kind of a democracy thing. Vote Republican! Better, maybe Libertarian. But, it won't work. Perhaps you should move to somewhere with low taxes where "The Man" don't take your stuff. I don't know where that is, but it ain't here.

 

[Country Living]

I think you should protest paying taxes!!! You should absolutely refuse to drive on federally funded roads, don’t allow any of your family to participate in any social programs (nutrition, housing, etc.). Refuse all subsidized health care and absolutely never rely on the military to take care of you and your family in times of crisis.

That will show them!

 

[Mike_Knight]

I think you should protest paying taxes!!! You should absolutely refuse to drive on federally funded roads, don’t allow any of your family to participate in any social programs (nutrition, housing, etc.). Refuse all subsidized health care and absolutely never rely on the military to take care of you and your family in times of crisis.

That will show them!

The founding fathers actually never intended us to pay an income tax except in times of war. So I'd support the military. I've never used any government services. As for the federally funded roads I'm not sure which ones are funded by them but that should be up to the state. The federal government is only supposed to do what the original Constitution said. In addition all our tax dollars go to the interest on the federal debt owed to the Federal Reserve which is owned by foreign bankers. In order to actually fund the government they must borrow more when the constitution allows the government to print it's own interest free currency.

Frankly if someone can earn just enough money to live off of through self-employment then they shouldn't at least have to pay the additional tax that an employer would normally pay. And anything for social security and medicare is a waste of money as I plan to never use those services and they will probably won't even be around once I retire.

 

[LdiJ]

The founding fathers actually never intended us to pay an income tax except in times of war. So I'd support the military. I've never used any government services. As for the federally funded roads I'm not sure which ones are funded by them but that should be up to the state. The federal government is only supposed to do what the original Constitution said. In addition all our tax dollars go to the interest on the federal debt owed to the Federal Reserve which is owned by foreign bankers. In order to actually fund the government they must borrow more when the constitution allows the government to print it's own interest free currency.

Frankly if someone can earn just enough money to live off of through self-employment then they shouldn't at least have to pay the additional tax that an employer would normally pay. And anything for social security and medicare is a waste of money as I plan to never use those services and they will probably won't even be around once I retire.

That is very incorrect. The Federal Government is supposed to do whatever the original constitutions AND its amendments says that it is supposed to do or allowed to do.

There is a constitutional amendment that allows the federal government to collect income tax.

Lets not encourage tax protesters...it just gives them a wider audience to promote their drivel and lead more innocent taxpayers down a path that will get them into trouble.

 

[Mike_Knight]

That is very incorrect. The Federal Government is supposed to do whatever the original constitutions AND its amendments says that it is supposed to do or allowed to do.

There is a constitutional amendment that allows the federal government to collect income tax.

Lets not encourage tax protesters...it just gives them a wider audience to promote their drivel and lead more innocent taxpayers down a path that will get them into trouble.

As a Libertarian I believe the government has no business in our wallets. Things would be a lot simpler if we had a federal sales tax replace the income tax system so common citizens don't have to deal with all the crazy forms, rules, and high payments.

 

[VeronicaLodge]

find yourself another government you are free to do that

 

[racer72]

As a Libertarian I believe the government has no business in our wallets. Things would be a lot simpler if we had a federal sales tax replace the income tax system so common citizens don't have to deal with all the crazy forms, rules, and high payments.

You must be very rich. Sales taxes are the most regressive form of taxation known to man, the poor will pay a lion's share of the taxes while the rich get richer. For about 3/4 of the folks in the US would see a sizable increase in their effective tax rate while those that make over a million dollars a year will see their tax burden drop to 3 to 5% of their income. And please explain how this will keep the government out of our pockets? That nickel is still worth 5 cents whether it comes out of my paycheck or I give it to the government at the grocery store.

 

[Mike_Knight]

You must be very rich. Sales taxes are the most regressive form of taxation known to man, the poor will pay a lion's share of the taxes while the rich get richer. For about 3/4 of the folks in the US would see a sizable increase in their effective tax rate while those that make over a million dollars a year will see their tax burden drop to 3 to 5% of their income. And please explain how this will keep the government out of our pockets? That nickel is still worth 5 cents whether it comes out of my paycheck or I give it to the government at the grocery store.

No I'm nowhere near rich. I don't really buy that much of anything. The extra cost would be worth the peace of mind that the government and it's IRS enforcers can't screw around with me ever again. No need to save every damn receipt and monkey around with all those tax forms and come up with huge lump sums of money. No need for the government to know my financial business and dictate what I'll do with my money. I'd pay the sales tax anonymously whenever I buy something. The only people who have to deal with the government would be the businesses collecting the tax and that's something they already do with the state anyway.

 

[Mike_Knight]

find yourself another government you are free to do that

If I made all my money on the internet and had enough money I probably would. The US has been turning rather socialistic slowly but surely over the past century beginning with the 1913 institution of the Federal Reserve and of course the dreaded income tax. The founding fathers never intended for the government to fund all those crazy welfare and other government programs and police the planet as well. We can thank FDR for a lot of it including the nutty social security Ponzi scheme I'm forced to contribute to.

Andorra sounds nice due to it's lack of a personal income tax.