Bank Levy
The process by which the IRS or state begins to seize assets in order to collect back taxes is called a “levy.” After providing either a ten-, thirty-, or sixty-day notice through certified mail, they are legally allowed to impose a bank account levy, demand payment from accounts receivable, take control of property for auction, and assume title on vehicles. It is interesting to note that the IRS processed almost four million bank levies in 2009 and was able to collect almost $50 BILLION in back taxes owed.
Virtually anything of value can be seized to satisfy the outstanding debt. Since your bank account contains your current disposable income which is needed to pay your bills, this can be the most frightening of all the levies.
Why Is An IRS Bank Levy Used? Can A Bank Account Levy Be Released?
Levies are the most destructive and harmful of all collection tactics. IRS levies are designed to force taxpayers into willful compliance. For over a decade we have practiced tax law on behalf of our clients and have been successful in the release of bank levy after bank levy. Our experienced and seasoned staff has years of experience with the IRS bank levy process and can work to have the typical bank levy released quickly and painlessly.
Depending on the type and severity, it usually takes only 2-10 business days for us to successfully lift a bank account levy. If a bank account levy has been imposed, we are usually able to revert up to 95% of what was taken back into the account.
How Does The IRS Bank Levy Process Work?
To begin, the IRS has rules it must follow and cannot just "decide" to impose a bank account levy. For starters, the IRS must see to it that the following three conditions are met:
- The IRS assessed and imposed the tax and delivered to you a Notice and Demand for Payment
- No payment nor arrangement for payment was made for the imposed tax
- At least 30 days prior to the IRS bank levy, you were provided with a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. Source: IRS.
Within 30 days of the date of your Final Notice of Intent to Levy, you may request a Collection Due Process Hearing. Our exceptional tax attorneys are well-versed in handling all aspects of the IRS bank levy. Call KEL Attorneys today or complete our online contact form if you would like to discuss your bank account levy and the options you may have for dealing with the bank levy.
Does My Bank Have To Comply With The IRS Bank Levy?
Absolutely! If your financial institution does not follow the bank levy to the letter, it will have its own IRS issues to deal with. Compliance with the IRS bank levy is a MUST for financial institutions.
What Will Happen Once My Bank Receives The Bank Account Levy?
First of all, a bank levy, when received by your financial institution, is only to be used once, the day it is received by your bank. On the day of receipt of the bank account levy, the bank is to "freeze" the required amount of funds and place them on hold as instructed by the IRS bank levy. You are given 21 days to resolve this IRS bank levy matter with the IRS. If the situation is not resolved within the 21-day timeframe, the funds must then be delivered to the IRS to comply with the bank account levy.
Also, be aware that the IRS can impose an IRS bank levy on ANY bank account you have access to. This will include your own personal checking and savings accounts as well as accounts opened for your children, corporate accounts, and any club bank account for which you serve as an officer.
Can I Handle This IRS Bank Levy On My Own?
If you feel that you want to tackle this monumental task on your own, then, yes. However, it most likely is not the best decision nor in your best interest, unless you have studied the innumerable tomes that make up the Internal Revenue Code and have kept up-to-date on current case laws, most specifically those related to the bank levy process. The legal tax team at KEL Attorneys has represented many clients with regard to their bank levy matters for more than a decade.
At KEL Attorneys, we can help you with your bank account levy. Give us a call today or fill out our online contact form to find out what options you may have. At KEL Attorneys, our legal expertise is sought by not only our clients but the mainstream media as well. We have provided legal opinions to NBC News, ABC News, Fox News, and Fox Business CNBC, to name a few.
Additionally, in an effort to inform the public about various legal matters that are timely and pertinent, KEL Attorneys' managing partner, Matt Englett, Esq., has a radio show entitled "Under Oath" that airs every Thursday evening at 6 p.m. EST on 540am (WFLA).