Bank Levy & Release
Bank Levies and How to Release Them
If you have failed to pay your taxes on time and have repeatedly ignored the notices sent to you by the IRS, then you may have your assets levied. If this situation occurs, you will want to seek the help of an experienced tax attorney. They will help you understand the power that a levy possesses and will aid you in releasing it.
What is a Levy?
After multiple failed contact attempts by the IRS, a levy is issued if you have tax debt that you fail to pay off. A levy will allow the IRS to seize your personal assets such as your property and certain personal belongings so that they may liquidate them to settle your tax debt. The IRS may also seize your bank accounts which is known as a bank levy.
In order for a levy to be released, the taxpayer must either contact the IRS and pay off their debt, enter an Installment Agreement that does not include the levy, or prove that the levy will create financial hardships for you that would restrict your ability to settle your tax debt. It is important to note that if you successfully release the levy, you will still have to pay off your debt.
What is a Bank Levy?
A bank levy occurs when the IRS seizes your bank account. This will result in your check deposits not going through, bank service fees, and the withdrawal of your funds. It is important to note that when the IRS places a levy on your account they can only take the money that is in it at the time that a levy order was initiated. If they want to levy again, they need to initiate another levy order to the bank.
Once the IRS places a levy on your account, there will be a 21-day waiting period. This period starts on the exact date and time that the levy notice is delivered to your mailbox or to the bank. Furthermore, starting at this point the funds in your account are frozen. During this period, you may negotiate with the IRS to release the levy and to keep the money in your account.
If you were able to pay off your owed taxes, but you were still charged a bank service fee for processing the levy, then you may be able to be reimbursed for the charge. To be reimbursed, fill out Form 8546 and send it to the IRS at the address listed on the levy notice you received.
In order to successfully acquire your refund, the IRS must be at fault for the error, and you must not have caused or attributed to it in any way. Moreover, you must have responded to the IRS’s attempts to contact you in a timely manner and given them any information that they had requested even before you had received the levy.
How Delia Law Can Help
If you are facing a levy or a bank levy, we will help you to contact and communicate with the IRS to release it. We will also aid you in gathering all the necessary documentation to submit to the IRS. Additionally, if it is needed, we will help you acquire an Offer in Compromise to lower the debt that you owe. Levies are a stressful and serious issue, but we are here to support you through every step of the way.
Call us today at our San Diego Office (619) 639-3336, our Los Angeles Office (310) 494-0100, our Bethesda Office (410) 630-3336, or our New York Office (646) 862-2854 for a free consultation. You may also complete the form below to contact Delia Law for a no-cost attorney consultation.