When you ignore IRS warnings or wait too long to respond to IRS collection letters, you can run the risk of having your bank account frozen and funds removed including penalties and interest. This is called a bank levy. A bank levy occurs when the IRS orders your bank to seize the funds in your account and send them to the IRS as payment when taxes remain unpaid and/or a resolution has not been reached.
The IRS will use a bank levy as a last resort collection mechanism for unpaid IRS taxes. If you receive this form of levy you have probably received many notices for taxes owed to the IRS and the many demands for payment of your tax debt. When it comes to a bank levy, the IRS actually does not like to garnish tax payer’s bank accounts but will do it if a taxpayer doesn’t respond to their notices and does not take action to clean up their tax situation.
This can be financially devastating leaving you unable to access funds to pay bills. Act now and get in touch with a local Chicago bank levy lawyer, Michael C. Whelan JD CPA
Are you under a Bank Levy? We can help!
An IRS bank levy can be stopped but it is important to act quickly since you will not have much time to stop the IRS once a bank levy has been issued. If you receive an IRS document or form called a “Notice of Intent to Levy” it may not be too late. By law, the notice must arrive at least thirty (30) days before the levy occurs. If the IRS has placed a levy on your bank account, you have twenty-one (21) days in which to obtain a release of the levy before funds equaling the amount owed are sent directly to the IRS.
An IRS bank levy is a serious situation and it is important to take quick action if you can’t afford to have the IRS seize the funds from your bank account. In order to stop the levy, you must do one of two things.
- You can settle your taxes with the IRS. In order to settle your taxes with the IRS, you must either pay the taxes in full, set up some other arrangement to pay them back, or come to an agreement on some other form of payment. There are many various ways to settle your taxes, to find the best method for your situation it is highly suggested that you talk with us and have us handle the settlement on your behalf.
- You can get be declared as ‘uncollectible’. In order to do this, you must prove to the IRS that if they were to levy your bank account then it would cause you financial hardship.
Dealing with the IRS in a situation like this is not easy. The IRS will most likely not be very accommodating to the taxpayer because of how late it is in the collection process and they have already labeled you as an unresponsive taxpayer. If you are in this situation, consider getting assistance from us to help with your situation.
Regardless of your situation, don’t wait for IRS collection and enforcement action to get more serious. Get help now for bank levy assistance. Contact the office of Michael C. Whelan JD CPA at (847) 298-9275 to schedule an appointment with one of the top bank levy lawyers in Chicago.