How to Get an IRS Bank Levy Release
A tax levy is usually a last resort effort the IRS makes to collect a sizable tax debt. This usually comes after some back and forth between the taxpayer and the IRS without any agreement or plan for the taxpayer to make this payment. The IRS can seize your assets as a form of payment including money in bank accounts, your paycheck, social security payments, and even property.
It is important to keep in mind that a tax levy is normally the IRS’s last resort and can only occur after written notice to the taxpayer who owes the debt. A tax levy should not be a surprise and you should have ample opportunity to make arrangements to avoid it, if possible. If you find yourself in the midst of IRS bank levy, here are some key steps to take to get the levy released:
1. Act Fast
We cannot stress this piece of advice enough. If you were not able to make an arrangement with the IRS before the levy was issued, do not waste any time once you see that the IRS has taken the money from your account. As you might imagine, a bank levy can put a severe strain on your personal finances as well as your credit, so it is imperative to act swiftly so that this can be resolved as soon as possible.
2. Communicate Directly With the IRS
The IRS is required to send you written notification in advance of placing a levy on your assets. Ignoring this very serious situation will not help make it go away. In fact, it will only worsen if no action is taken. Your best course of action is to communicate directly with the IRS about your plans to pay your tax debt. If you are uncomfortable communicating directly with them, you can consider hiring a tax professional to communicate on your behalf.
Instances Where the IRS Must Release the Levy Against You
If the IRS has placed a levy on your bank account, they think that it is the only way that they will get the debt paid. However, if you pay the taxes (along with interest and penalties), the IRS must release the levy.
In addition, if you enter into an installment agreement to pay the debt, or the IRS determines that the levy creates too much of a financial hardship on you, they may also release the levy.
The issue with each of these solutions is that damage to your personal finances is likely to have been done by the levy itself, so it is always best to solve this before the IRS levies your bank account.
Success Tax Relief Provides Honest and Useful Tax Advice For Those Faced with Tax Levies
A tax levy is the stiffest penalty that the IRS can impose on a taxpayer with significant tax debt. If you are in a situation where you are concerned a levy may be coming or you have already received notification of the levy, contact our team of professionals for help today.
We can review your documentation and the notices from the IRS to help you come up with the best possible course of action for you and find potential avenues to pursue that assure the levy is released as soon as possible. Contact us today so you can see how we can help you.