Bank Levies
You may have heard that the IRS has a “secret weapon” for collecting back taxes. It’s called a bank levy. A bank levy is when the IRS takes money out of your bank account without your permission in order to collect on your tax debt, such as overdue taxes, penalties, interest, and fees.
When the IRS uses this tactic, it can have devastating consequences for you and your family. Therefore, it’s important to understand what a bank levy is, how it works, and the steps you can take to stop the IRS from seizing your assets.
To schedule a free case evaluation, call (844) STOP-IRS now.
What Is a Bank Levy and How Does it Work?
If you owe money to the IRS, they are entitled to take legal action called a “levy”. With a bank levy, your bank is legally obligated to take the funds in your account in order for your IRS debt to be repaid.
The IRS will initiate the bank levy process by sending a notice to your bank informing them about your unpaid taxes. In response, the bank takes the money from your accounts and restricts your access to your funds for 21 days. After this time period, the bank is legally obligated to release the funds to the IRS to satisfy your outstanding tax bills. Here are some additional things to consider about bank levies:
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Once the IRS collects money through a bank levy, it’s very difficult to get it back.
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Bank levies aren’t always used as a last resort. Sometimes the IRS will try to work with you first, so it’s important to consult with an experienced tax attorney to review your resolution options.
Ways to Stop an IRS Bank Levy
There are several ways to stop a bank levy through strategic IRS resolution methods, but the first key to stopping an IRS levy is to seek professional tax advice before the levy process begins.
Some of these tax relief options include:
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Standard Installment Agreements
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Partial Pay Installment Agreements
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Offer in Compromise (OIC)
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Currently Not Collectible Status
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Penalty Abatements