The IRS typically provides warning if a bank levy is in the forecast. However, bank levy’s are one of the most difficult collection strategies and mechanisms used by the IRS.
The following are some bank levy tips that may help fix your tax problems.
The Bank Levy:
This occurs when the IRS legally can go into your bank accounts and withdraw funds in order to satisfy debt in the form of unpaid taxes owed. Banks are required to allow the action by the IRS to occur.
The Bank Account Levy Process:
- This occurs after a long IRS collection process. The IRS will be required to provide you with a tax amount to pay.
- IRS sends out a final notice to levy funds.
- Funds in your account may be frozen by the IRS.
- There is typically no payment agreements in place for a bank levy to occur.
How to Stop a Bank Levy:
Bank levy’s is not easy to stop especially when the process has begun. Preventing the IRS from withdrawing funds from your bank account that is now frozen by the IRS. Here are a few items to consider attempting to stop a bank levy from continuing:
- Act prior to account becoming frozen to prevent the levy.
- If all funds have not already been seized, actions may be taken to prevent the IRS from implementing another bank levy.
- Contact the IRS and work with the IRS for a payment plan through approved IRS compliance processes.
Here are a few IRS Compliance Process Payment Plan Methods When Working With The IRS:
- Payment Installments. Payment plan with orchestrated monthly payment schedules. It is very important not to default with your scheduled monthly payment plan through the IRS.
- Attempt to negotiate with the IRS for a lesser bottom-line amount due.
- Pause the collectible tax amount until you pick up your financial capabilities to be put on an IRS installment payment plan.
- Appeal the bank levy process if you feel the IRS is in error.
A bank levy is a very serious matter that will require you to move as fast as possible in order to work with the IRS and to avoid any legal actions by the IRS such as freezing up your funds commonly referred to as a bank levy. Once the bank levy as begun, the difficulties to reverse the actions are very difficult.
To learn more about a bank levy, please visit us : https://dtaxsolutions.com/