An
IRS Bank Levy occurs only after the IRS is unsuccessful at collecting
from you. If you get an IRS Bank Levy here’s what to do first.
The first step with
an IRS levy is to check to see if there is a basis to get it released,
while you work out a payment deal on your tax debt. Otherwise, your problems
will only increase as you begin o bounce checks because the funds you
thought were available in your bank account have been removed by Uncle
Sam. Often our Trippon & Company CPA tax professionals are able to
get a levy release for our clients. But, before getting into levy release
strategies, let’s first make sure you understand where you stand
when the IRS uses a bank levy against you.
What
an IRS Bank Levy is…
If
the IRS has issued a bank levy, they are proactively seizing
your personal assets to settle an outstanding tax debt you
owe. Once the bank levy has been assessed, the underlying
bank must wait a period of 21 days before sending the IRS
funds held within the associated bank account. During this
holding period, the taxpayer may request and be granted a
levy release if they have appealed and filed the appropriate
steps showing cause.
IRS Bank Levy Releases
A
levy release may be granted for several reasons, including
financial hardship, IRS procedural errors; or in the event
that the taxpayer pays their outstanding tax debts in full,
including all associated penalties and interest. Generally
this is best time to get a tax professional involved because
IRS procedure is both very technical and very complicated.
Exempt
Taxpayer Income
A
portion of the taxpayer’s income deposited into the
levied bank account may be exempt from collection under IRS
rules. How much is exempt? That depends on your geographic
location and family situation. The IRS has allowable cost
of living exemptions based on your region, and your number
of dependants. Unlike a wage levy, bank levies are not continuous.
IRS
Levy Errors
If
the IRS has assessed a bank levy on a taxpayer’s bank
account in error, the individual may be entitled to a refund
or reimbursement of funds. A determination appeal must be
filed within 30 days of the tax levy using the appropriate
IRS forms.
Of
course, the best action for individual taxpayers is to resolve
their outstanding tax liabilities before an IRS Bank Levy
is assessed. When it comes with tax debts, it pays to be proactive.
Need help with an IRS Bank Levy? Call our Trippon
& Company CPA office at 800-952-1099. We can represent
IRS audit clients in all 50 States. Our phones are answered
24 hours a day, 7 days a week. Call now and we’ll start
protecting your bottom line TODAY!
Call Jim at 713-661-1040 Today!
Telephone Is Answered 7 Days A Week!
