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Stop IRS Levy

By Edited Nov 20, 2016 0 0

One of the most true things on Earth is that nobody likes to deal with the IRS. This is especially true if the IRS has ruled that you owe back taxes and they intend to collect on that debt. One of the more powerful options that the Internal Revenue Service has at its disposal to collect a tax debt is to use a bank account levy. If you have received an IRS bank account levy then there are certain steps that you will have to take to be able to stop IRS levy (on bank accounts) or other judgments against your assets. If you do not do anything you can kiss your savings or other funds in bank accounts goodbye. However, you do have several options in fighting IRS levies that I want to discuss.

Stop IRS Levy on Bank Account

When you have received an IRS bank levy, you have received a notice that the IRS intends to forcefully seize monies that you may have in United States banking institutions. Your bank is legally obligated to let the IRS have your money so long as they follow certain procedures. In fact, it is illegal for your bank to resist turning over your funds or to be uncooperative in any way. Therefore, if the IRS has ruled that you have a tax debt owed and have served you with a bank levy notice then you have to take immediate action in order to protect your assets from being seized. And, remember that when the IRS wants to play hardball, they can be more ruthless than any other government agency by a factor of ten. Therefore, it is essentially that you arm yourself with a knowledge of how to fight IRS bank levies and prepare to take immediate action.

What to do if you receive an IRS notice of intent to levy? You generally have only a short period of time in which to respond to a notice of an IRS levy. Once you have received the final notice of intent to levy, you have 30 days to satisfy your tax debt or lose the funds in your bank account. The IRS has the right legally to remove all of the money in your bank account so long as you tax debt is in excess of that total. So, as you can see, taking immediate action is essential as you are working against the clock.

The first thing that happens in the sequence of events for IRS bank account levy is that your banking institution will freeze your funds. Once your funds are frozen you will no longer have access to them. At this point, the clock will start. Your bank will hold your money for 21 days in stasis. After those 21 days are up, your money is transferred to the IRS and your money is gone forever. It is therefore essential that you take action before the 21 days expire. You have a couple of different options at this point, but one of your best options is to enlist the help of a tax professional to help you work with the IRS to get your money released.

The reason that you want to talk to a professional who has experience with IRS bank account levies is that they are familiar with the process and the have extensive experience dealing with scenarios that are just like yours. Typically, even if your tax professional is not able to resolve this situation to the IRS's satisfaction within the 21 day window, they are almost always able to stop the IRS levy and protect your funds from seizure until a suitable arrangement can be worked out with the IRS. It is therefore critical that you arm yourself with a professional to help you make certain that your funds can unfrozen and you are able to buy yourself some time to resolve the matter in a way that is more favorable to you.

The fact of the matter is that stopping an IRS levy will require the service of a professional in nearly all cases. So if you find yourself trying to stop IRS levy, it is essential that you act fast to find representation before your money is gone forever.

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