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