How to Handle a Bank Levy
A bank levy can be devastating to your personal finances. You login to check your account balance, and your hard-earned savings account is gone. Bills that have been set up to be paid are declined and it quickly can become a downward spiral that is very difficult to recover from.
What is a bank levy?
The IRS can levy, or take money from, your bank account to pay a debt that is owed to the government in taxes. This is a legal means of recourse that the IRS can take if your tax debt is not paid in full. They can continue to levy your bank account until you have repaid the full amount owed.
Best Strategy: Avoid a levy all together
Avoiding a levy all together is the best possible option and will save you a significant amount of time and headaches. The IRS is required to mail you written notification of the levy and this will come to you via certified mail. This is the time to act. At this time, you can request a hearing about your situation and that immediately gives you 30 additional days to work out a payment plan with the IRS. This is a great time to be in touch with a reputable tax firm that can help you communicate with the IRS and perhaps reduce what you owe. There are options for payment plans (installment agreements) or to have the amount owed reduced if you are unable to pay (offer in compromise) but the key is to be proactive and respond before your bank account is levied, if at all possible.
If your account has been levied, there may still be time
If you realize that the IRS has levied your bank account, you may still have an option to reverse this situation. You should act immediately as you still have a period of 21 days to negotiate with the IRS before you money is gone. You should respond directly to the correspondence or notice of the levy and respond by phone if possible. You do not want to waste time sending a letter through the mail.
Contact the professionals at Success Tax Relief for help
A bank levy can be a very stressful situation with long term ramifications on your financial future. You want to be proactive if you owe the IRS money and find a way to reach a settlement with them, before your bank account is levied. If you have received notice of an upcoming levy or if the IRS has just taken money from your account, call Success Tax Relief for help. We are a full service tax relief company with a 30 year track record of success working with people just like you to come up with solutions for your tax issues.
We understand how complicated, time consuming and difficult these situations can be. One of our company’s primary strengths is direct communication with the IRS. We can take this element off of your shoulders and begin working toward a solution that will work for you and for the IRS. We have negotiated offers in compromise, installment agreements, provided audit support and reviewed tax returns to find errors that result in less money owed to the IRS. If a bank levy is a possibility for you, do not delay. Give our tax professionals a call, 24/7 at 1-877-825-1179. We are here to help you!