Monday, February 11, 2013
IRS Has Another Way To Levy
You may know that – if you fall behind on your taxes – the IRS may draft your bank account or garnish your wages. These actions are called “levies.”
The IRS has a new revenue source to levy.
If you sell on eBay or Amazon, or accept PayPal, you may have received a Form 1099-K. The 1099-K reports monies paid to you, if you exceed a certain dollar or number-of-transactions threshold.
There are new instructions to IRS revenue officers.
1. They now have another address at which to contact you, should you have moved and disappeared from their radar.
2. They now can levy those eBay, Amazon or PayPal payments, if you owe the IRS money and have not entered into a payment plan. They will levy future payments until the taxes are fully paid.
The 1099-K is joining the long-established levy program on W-2s and bank accounts. The levy program on 1099-Miscellaneous (that is, independent contractor) income has also been around for a while.