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It seems almost unthinkable that a federal agency would come after a soldier who had fought and been wounded for his country, but even wounded soldiers are still taxpayers. The Internal Revenue Service (IRS) has the legal right to collect from anyone in arrears, and that includes disabled veterans. It is no wonder why so many Americans live in fear of the IRS. What is VA Disability Compensation? Any military veteran injured in the line of duty may qualify for disability benefits. Compensation is based on the extent of the injuries or diseases and the number of dependents of the disabled soldier. While the benefits are tax-free, they are not exempt from tax garnishment if you owe back taxes. The IRS can withhold up to fifteen percent of monthly benefits. As you might imagine, most disabled veterans rely on these payments. Since many of them are unable to work, disability compensation may be their only steady source of income. If they have a family, monthly checks may be their only way to put food on the table. But the IRS doesn’t care about all that. No matter how may medals he may have, if a veteran owes back taxes to the IRS, the IRS still sees him as a tax debtor. And because they are the ones writing his checks, the Treasury Department will simply send him less if he has an IRS debt. The process is known as an IRS levy, which most commonly refers to bank account levies or wage garnishment, but also extends to levying benefits. Types of wage garnishment Most Americans mistakenly assume that the IRS only goes after working people who owe them back taxes. After all, they do call it wage garnishment. But the truth is that the feared federal agency can go after benefits and payments that are sent to disabled and/or retired individuals. The IRS can execute a tax levy on social security, social security disability, and VA compensation disability benefits. Combat IRS Levy Today! Millions of Americans owe back taxes to the IRS. Some of them are swindlers, but most are good folks who cannot afford to pay their debt. Since they cannot work, many disabled veterans have no way to pay. But instead of forgiving these tax debts and rewarding their service, the IRS withholds the benefits most injured soldiers need to survive. Do not be fooled by internet hucksters who say they can eliminate your IRS tax debt or solve your tax problems in the blink of an eye. This is seldom the case, and no experienced tax professional would claim otherwise. One option for a disabled veteran who wants to put an end to wage garnishment is to contact a qualified tax advisor. By law, the IRS cannot garnish or levy a taxpayer to the point of financial ruin. There are ways to pause the process. Every road to relief begins with compliance first. Only after you are in compliance can a tax advisor begin working to permanently establish a recovery plan to get you out of the tax crisis you are in. Tax advisors will talk to you about how to fix the underlying tax problem, then speak to the IRS on your behalf and do their best to get a tax levy paused or reduced. More often than not, they will try to negotiate a payment plan that includes monthly installments that may be smaller than the amount that is being withheld from your disability benefits. Tax advisors can also help you complete and submit unfiled tax returns. For more information about a payment plan for taxes or if you need back tax debt relief please visit http://www.txmstr.com.
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