IRS Levy – Bank Account

You’ve just come from the bank and have been informed that you have a levy on your account. This can be a bad situation. Think of the trouble this will bring in your and your family’s life. You’re asking, ?What do I do now??

These
are some reasons why the IRS would put a levy on your bank account:

• Unpaid taxes to the IRS
• You have not filed some tax returns.
• You’ve recently changed your address and your IRS notices have not been received.
• Your installment agreement with the IRS was defaulted.

The IRS employs levies as a method to punish you, the taxpayer, for not settling taxes. A Notice of Levy is served to the bank and is attached to your account. The IRS may take all of it. Your bank, though, does not have to give the money to the IRS for 21 days. The 21 days starts with the date on the levy. Move quickly. Arrangements need to be made with the IRS before the end of the waiting period. Remember, you will not be able to use the money in your account unless the IRS releases the levy.

Bank Account Levy Release

One of these can release a bank account levy:

• Your taxes are settled in full or you negotiate arrangements for an Offer in Compromise or file for bankruptcy
• You prove that the time limit for collections has expired. Count 10 years from assessment date.
• You can prove to the IRS that the release of the levy will enable collection of the taxes.
• An Installment Agreement is reached with the IRS.
• Absence of funds will lead to extreme financial hardship for you.
• Your bank account amount exceeds the amount owed to the IRS.

You should be able to find a way to put yourself in any of these categories. Call the IRS officer who signed the notice. If this doesn’t work, make an appointment with his supervisor. You can make arrangements to pay the taxes, provide the necessary information, or ask for an appeal.

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