What To Do When Served With a Bank Account Levy Notice

When the IRS issues a levy on your bank account, it's catastrophic. It's going to affect your and your family's life a lot. What must you do?

There are several reasons why the IRS would put a levy on your bank account. A few of these reasons are:

• You have not paid tax to the IRS.
• You haven't filed several tax returns.
• You've recently changed your location and the IRS notices haven't been received.
• Your installment deal with the IRS was not honored.

Yes, a bank account levy is the IRS's way of punishing you for not settling your taxes. The IRS may take all of your funds by serving a Notice of Levy to your bank attached to your account. Unless the IRS releases the levy, you won't be able to use the money in your account. It will be twenty-one days starting on the date of the levy before the bank can release the funds to the IRS. Move quickly, as deals can still be made with the IRS during this timeframe.

Release of a Bank Account Levy

Any of these may release a bank account levy:

• Your taxes are settled in full or you negotiate arrangements for an Offer in Compromise or file for bankruptcy
• You prove that the time limit for collections has expired. Count ten years from date of assessment.
• Proof that the levy's release will enable collection of taxes.
• Reach an installment agreement with the IRS.
• Absence of funds will result in extreme financial hardship for you.
• Your bank account amount exceeds the amount owed to the IRS.

If any of these apply to you, call the IRS officer who signed the levy notice or his supervisor. Provide information, settle your taxes, or appeal the IRS decision.

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Originally posted 2007-12-25 04:19:25. Republished by Blog Post Promoter

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