A bank levy allows for the legal seizure of your property to satisfy your tax debt. There are a number of ways a bank levy exists. For example, a bank levy can include:
- Garnishing wages
- Taking money in your bank or another financial account
- Seizing and selling your vehicle(s), real estate and other personal property
The IRS can place a bank levy on you to settle back taxes. Therefore, if you don’t settle back taxes with the IRS, they can place a bank levy on your account. As a result, you risk your financial security and property being taken away from you. A bank levy is one of the most common and simple types of levies by the IRS. Before the IRS places a levy on you, they’ll send a notice in the mail outlining your tax debt. To get out of an IRS bank levy, you must request an IRS bank levy release.
When Will I Receive Notice of a Levy?
Taxpayers typically receive IRS bank levies if they need to settle back taxes. Likewise, the IRS will usually levy only after these requirements have been met:
The IRS assesses the tax owed and sends a Notice and Demand for Payment. In other words, the IRS sends you a tax bill before they enact an IRS bank levy.
The taxpayer neglects or refuses to settle tax debt.
Next, if you refuse to pay, the IRS sends a Final Notice of Intent to Levy. Similarly, the IRS will send a Notice of Your Right to A Hearing 30 days before the bank levy.
To get out of an IRS bank levy, you must request a bank levy release. A tax relief professional can help you with that request.
How Does the IRS Notify Me?
There are several ways the IRS will notify you of a bank levy. First, the IRS may notify you of your IRS bank levy in person. Alternatively, the IRS may leave your bank levy notice at your home or place of business. Similarly, the IRS could send your bank levy notice to your last known address by certified mail. The IRS can also choose to levy your state tax refund. However, if they choose to levy your refund, they’ll send you a Notice of Levy on Your State Tax Refund. After that, you’ll get a Notice of Your Right to Hearing after the levy. It’s important to understand what kind of levy you’re under when you receive the notice. Similarly, it’s imperative that you get in touch with a tax resolution professional immediately. Alternatively, ignoring your IRS bank levy notices can get you in deeper financial trouble.
What Can The IRS Levy?
If you don’t settle tax debt, the IRS can make arrangements to place a bank levy on your account. The IRS may levy any property or right to property you own. Similarly, the IRS can levy any property you may have an interest in. For instance, the IRS can levy property that is yours but held by someone else. In other words, the IRS can levy assets such as:
- Wages
- Retirement accounts
- Dividends
- Bank accounts
- Licenses
- Rental income
- Accounts receivables
- The cash loan value of life insurance
- Commissions
Alternatively, the IRS can also seize and sell the property that you hold, including:
- A vehicle
- Boat
- House or vacation home
At FinishLine Tax Solutions, we understand how valuable all of the above assets are to you and your family. Likewise, we know how hard it can be when the IRS takes these valuables away. However, we’re here to help.
What is a Bank Levy Release?
Our experienced team of tax resolution professionals has years of experience successfully getting our client’s bank levy releases. So, what is a bank levy release? A bank levy release is when you make a request to the IRS to have the bank levy lifted from your account. If you want to file for a bank levy release, you need to contact the IRS immediately. However, the professionals at FinishLine Tax Solutions can do this for you. But, it’s important to remember that getting the IRS to release the levy on your account isn’t always that easy. However, a tax professional can appeal the IRS bank levy before or after it goes into effect. In other words, the best way to stop the IRS from levying your wages, bank account, or other property is to act fast.
