What Is An Irs Bank Levy-t6570

Taxes What is an IRS Bank Levy? Tax debt can cause serious problems for taxpayers and their families. One of the most crippling is an IRS bank levy. When a bank levy is served, taxpayers will have their bank accounts frozen while the IRS sorts out the financial issues. During this process, people will not be able to access their funds. A bank levy is a very powerful tool used by the IRS to recover the back tax debt they believe is owed to them. What is an IRS Bank Levy? An IRS bank levy is the legal seizure of your personal bank accounts, property or any other assets you may have. A levy differs from a lien: * A levy allows the IRS to take all assets necessary to pay back tax debt. * A lien is a claim used as security for the outstanding tax liability. When the IRS serves a bank levy, the bank is required to immediately freeze your personal bank account(s). You will not be able to withdraw any money unless your account balance is greater than the tax debt owed to the IRS. Debit card transactions will not be approved and checks written against the account will not be honored, even those written before the levy occurred. Understanding the IRS Bank Levy Process Taxpayers need to understand the many factors involved in the IRS bank levy action. You need the help of a knowledgeable tax attorney who can advise you and can begin the process of releasing the levy. When the IRS serves a bank levy to obtain the back taxes you owe, you need to know the account will be .pletely frozen for 21 days. In accordance with IRS regulations, the account is frozen for that time to enable them to verify the account ownership. During that 21-day period, you will not have access to the money the IRS believes you owe. They will also hold additional funds to cover any interest, penalty fees and fines. It is likely you will have more funds held than the original tax debt. While you can withdraw any additional money in your account, you will not be able to touch the money the IRS claims is owed to them. When the 21-day period has elapsed, the bank is required to send the amount of your total back tax debt from your account to the IRS. Escalating IRS Collection Action If the IRS cannot recover sufficient funds to satisfy the entire tax debt through the IRS bank levy process, they will take additional collection action for the balance due. Tax laws permit the IRS to: * Seize and sell property that you hold (car, boat, house, etc.) * Levy your assets that are held by someone else (wages, retirement accounts, rental in.e, accounts receivable, cash loan value of your life insurance, etc.) Many taxpayers do not understand tax laws well enough to protect their assets and prevent this from happening. It is imperative to consult with a qualified tax attorney to stop this downward spiral. Tax Debt Resolution is Possible If you have been served or threatened with an IRS bank levy, it is important to know your options: * File to appeal the levy based on qualifying circumstances * Work out a payment plan with the IRS to stop the levy from occurring * Negotiate with the IRS to obtain a current tax debt relief plan Do not make the mistake of accepting a frozen bank account. The IRS is adept at intimidation and aggression; leaving you to believe you has no choice. An experienced tax attorney is skilled in IRS negotiations and is knowledgeable of all tax debt programs available. Consulting with a tax expert will give you a chance to keep your bank account out of the hands of the IRS. Let a tax professional represent you in dealing with the IRS to ensure the most favorable resolution of your tax debt problems. About the Author: 相关的主题文章: