An IRS bank levy can be a devastating experience for any individual or business.
When the IRS takes money directly from your bank account, it can disrupt your finances and make it difficult to cover essential expenses.
If you’ve received notice of a bank levy or fear that one might be coming, it’s crucial to understand what a levy is, how it can affect you, and the steps you can take to resolve the situation.
What Is a Bank Levy?
A bank levy is a legal action that allows the IRS to seize funds directly from your bank account to pay off your tax debt.
This action typically occurs after multiple attempts by the IRS to collect the owed taxes have failed.
Before placing a levy on your bank account, the IRS will usually send several notices, including a “Final Notice of Intent to Levy” and a “Notice of Your Right to a Hearing.” If you ignore these notices and fail to address your tax debt, the IRS can instruct your bank to freeze and seize funds from your account.
A bank levy can cause significant financial strain, especially if the seized funds were meant for essential expenses like rent, payroll, or utility bills. Once a levy is in place, your bank must hold the funds for 21 days before sending them to the IRS, giving you a short window to try to resolve the situation.
How to Get Out of a Bank Levy
While a bank levy is a serious situation, there are several steps you can take to address the issue and potentially get the levy released:
- Pay Your Tax Debt: The most straightforward way to have a bank levy released is to pay your tax debt in full. If this is not feasible due to financial constraints, other options are available.
- Set Up an Installment Agreement: You can negotiate an installment agreement with the IRS to pay off your tax debt over time. If you agree to a payment plan, the IRS might release the levy to allow you to continue managing your finances while paying off your debt.
- Submit an Offer in Compromise (OIC): An Offer in Compromise is an agreement with the IRS to settle your tax debt for less than the full amount owed. This option is available to taxpayers who can prove that paying the full amount would create a significant financial hardship. The process can be complex and requires detailed financial information, but it can result in the release of a levy and a fresh start.
- File for a Levy Release Due to Hardship: If the levy is causing undue financial hardship—for example, making it impossible for you to pay necessary living expenses—you can request a levy release based on financial hardship. You’ll need to provide evidence of your situation to the IRS to support your claim.
- Request a Collection Due Process Hearing: If you believe the levy was placed in error, or if you have other valid reasons for challenging it, you can request a Collection Due Process (CDP) hearing. This request must be made within 30 days of receiving the final notice of intent to levy. At the hearing, you can propose alternative solutions, such as an installment agreement or an Offer in Compromise.
Why Choose Jennifer Walker at Walker Tax Relief?
Navigating the complexities of IRS levies and finding the best solution for your situation can be overwhelming, especially when your financial stability is at stake. That’s where professional help becomes invaluable. Jennifer Walker at Walker Tax Relief has over 20 years of experience assisting clients with IRS issues, including bank levies. Her expertise can make a significant difference in resolving your tax problems quickly and effectively.
Jennifer takes a personalized approach to each case, working closely with you to understand your unique financial situation and developing a tailored strategy to address your needs. With her guidance, you can explore all available options and choose the best path to resolve your tax debt and have your bank levy released.
Take Action Today
Don’t let a bank levy disrupt your life or business any longer. Contact Jennifer Walker at Walker Tax Relief today at (248) 983-4829 for a free consultation. Let her expertise and dedication help you find a solution and protect your financial future.
Call now to start resolving your IRS issues with confidence!
