Receiving a notice from the IRS or a state tax agency is an event that can cause immediate anxiety. For individuals and businesses in Iowa and Nebraska, tax problems can escalate quickly from a simple notice to aggressive collection actions that threaten your assets and livelihood. Understanding the specific mechanisms of these problems is the first step toward effective resolution.

At BPB Tax Resolutions, we specialize in a strategic approach to tax debt. We believe that an informed client is an empowered client. Our founder and CEO, Benjamin P. Butterfield, is a Certified Tax Resolution Specialist and an Enrolled Agent. He is not only a local professional but also a recognized expert, evidenced by his prestigious 2024 Roz Strategies Outstanding Achievement in Tax Resolutions award. With his expertise, we can guide you through the complexities of your tax issues with a clear, actionable plan.

This guide will provide a detailed look at the most common and serious tax problems we solve, along with the specific strategies we use to resolve them.

Problem 1: The Threat of a Bank Levy

A bank levy is one of the most immediate and disruptive collection actions the IRS and state tax agencies can take. A levy allows them to seize funds from your bank account to satisfy a tax debt. The key to understanding a bank levy is to recognize the process leading up to it and how to respond.

The Procedure: Before a bank levy can be executed, the IRS must follow a strict process. This typically involves sending a series of written notices. The most critical is the final notice, known as a Notice of Intent to Levy, which gives you a 30-day window to respond. If you do not respond, the levy will be served to your bank, which then has a 21-day holding period before surrendering your funds. This holding period is a crucial time for a professional to act.

Our Solution: Once we are retained, our first priority is to communicate with the IRS or state agency to stop the levy. We have specific tools and access as tax professionals to intervene and negotiate a release, often before the 21-day holding period expires. Our immediate action can prevent the seizure of your funds, giving us the time needed to develop a long-term resolution plan.

Problem 2: The Ongoing Burden of Wage Garnishments

A wage garnishment is a continuous collection action where a portion of your paycheck is legally withheld by your employer and sent directly to the government. This can happen with both federal and state tax debt. For individuals in Iowa and Nebraska, this can be particularly devastating, as it can make it difficult to cover essential living expenses.

State-Specific Details: The Nebraska Department of Revenue and the Iowa Department of Revenue both have the authority to garnish wages. In Nebraska, a garnishment is a continuing lien on your nonexempt earnings, which can be renewed for up to 180 days. In Iowa, the Department of Revenue can issue a levy against your wages, and it will remain in place until the debt is paid off or a payment plan is established.

Our Solution: Our approach is to work with the tax agency to get the garnishment released as quickly as possible. This is often achieved by submitting the necessary financial documents and demonstrating that the garnishment is causing economic hardship. Once the garnishment is released, we work to negotiate a more manageable, long-term payment solution that aligns with your financial reality.

Problem 3: The Complexity of Unfiled Tax Returns

Failing to file tax returns for one or more years is a problem that can seem insurmountable. The IRS and state tax departments can file a Substitute for Return (SFR) on your behalf, which is calculated without the benefit of your deductions, exemptions, or credits. This almost always results in a higher tax bill than what you actually owe.

Our Solution: The first and most important step is to file the missing returns. As an Enrolled Agent, Ben Butterfield has the authority to represent taxpayers before the IRS and state tax agencies. We will prepare and file all of your unfiled returns, ensuring accuracy and full compliance. This process can significantly reduce your tax liability and is a mandatory step before you can be considered for many relief programs.

Problem 4: The Challenge of Removing Penalties and Interest

Penalties and interest can often double or triple a tax debt, making it feel impossible to pay off. Interest accrues daily, and penalties are often assessed for late filing, late payment, and underpayment.

Our Solution: We can request Penalty Abatement from the IRS and state tax agencies. The most common grounds for a successful abatement is “reasonable cause,” which means you can prove that your failure to comply was due to circumstances beyond your control, such as a serious illness, natural disaster, or loss of records. We will help you build a compelling case, gather the necessary evidence, and formally submit the request to maximize your chances of success.

Your Advocate for a Fresh Start

Tax problems do not have to define your future. With the right professional guidance, you can navigate the complex system and find a sustainable solution. Ben Butterfield and the team at BPB Tax Resolutions are committed to providing personalized, expert service to the residents of Iowa and Nebraska. We handle the paperwork, the phone calls, and the negotiations, so you can focus on rebuilding your life.

Don’t let tax debt control your financial future. Take the first step toward a resolution.

Contact BPB Tax Resolutions today at (402) 779-7399 for a confidential consultation.