If you don’t pay taxes to the state, taxing authorities can take a hold of your bank account. In other words, they can place a bank levy on your account. However, the good news is the tax relief services specialists at FinishLine Tax Solutions are here to help. We offer state bank levy release services to make sure your money stays where it belongs-in your account. A bank levy gives taxing authorities power control over your finances. However, just because the taxing authorities are powerful doesn’t mean you’re powerless. Our tax resolution services can help you get your money back with a state bank levy release. In addition, we can help you prepare for the future and make sure this doesn’t happen again.
What is a Bank Levy?
A bank levy is technically a legal action that creditors can take. In this case, the creditors coming after you are taxing authorities for the state you live in. When taxing authorities place a bank levy on you, your bank must send money to the money to satisfy your debt. Additionally, the taxing authority must also provide proof that they have the right to take your funds from you. In a bank levy, your account will be frozen. Additionally, any funds you have in the account will be used to satisfy your tax debt.
Can my state issue a bank levy?
If you thought the IRS was bad, try dealing with state taxing authorities. Many states are even more aggressive than the IRS in issuing bank levies. No matter where you live, all states have the power to place a bank levy on you. However, FinishLine Tax Solutions offers state bank levy release services to help. If you find out you’re being levied, call FinishLine Tax Solutions right away. If you don’t seek a state bank levy release, your tax situation will only get worse by the day. In other words, a tax problem never just goes away. Get your bank levy removed is to work with a tax relief services company that can help.
What Does a Bank Levy Do?
In essence, a bank levy gives the state control over funds in your bank account. With bank levies, the state can require your bank to prevent withdrawals from your account. If a bank levy is placed on your account, you cannot withdraw funds for 21 days. Think about how this can affect your daily life. In other words, how will you withdraw money to go to the grocery store? How will you pay bills? How will you be able to put gas in your car? In other words, a state bank levy can seriously disrupt your life. With a bank levy, your bank is required to forward all of your money to the taxing authority.
How Can I Apply for a State Bank Levy Release?
When you’re dealing with a state bank levy, the first thing you want is your money back. However, getting your money back is only step one. Next, you must get your state taxes in order to avoid future state bank levies. In other words, work with your tax resolution services company to find a permanent solution to your tax problem. Getting a bank levy released is only going to help you out in the meantime. You don’t want to end up with trying to get another bank levy removed down the line. In other words, the sooner you get your taxes fixed, the more likely you are to avoid future bank levies.
How does a State Bank Levy Release Work?
When you work with a tax resolution services company on a state bank levy release, a few things will happen.
- First, we will make sure the amount the state taxing authority says you owe is correct. Believe it or not, sometimes taxing authorities make mistakes. This is especially true if the state filed your tax returns for you.
- Next, we will also verify any penalty or interest calculations the state made. In other words, your tax bill will appear to be a lot larger because of penalties and interest.
- Lastly, we will work directly with the taxing authority on a tax resolution services plan. We have experiencing negotiating a variety of tax relief services options for our clients.
How Do I Resolve Tax Issues?
Sometimes, the only way to get a state bank levy release is to resolve your tax debt. One way to get a state bank levy release is to pay off your tax debt. However, we understand that not everyone has the financial means to pay off their debt at once. That’s where we can help. There are many tax relief options from which to choose. And additionally, FinishLine Tax Solutions has experience dealing with all of them. Among the tax relief programs available include:
- Declaring Currently Not Collectible status
- Negotiating an Offer in Compromise
- Applying for an Installment Agreement
There are various tax relief options available. Choosing which tax relief solution is right for you will largely depend on your individual tax situation. This is where working with a tax relief services company can be very beneficial. We can help determine which tax relief option is best.
How Long Does a State Bank Levy Release Take?
The time it takes to get a state bank levy release depends on when you settle your tax debt. In other words, if you pay off your taxes in total, the bank levy will be immediately released. However, you may not be able to pay off your taxes all at once. In that case, you’ll want to apply for a tax resolution plan. Typically, the IRS will give you 60 days to either:
- Satisfy your tax debt by paying off your balance
- Pay down your balance
- Enter into a payment agreement
However, sometimes payment plans are more complicated than others. In that case, it can take you months to pay off your debt to the state. More complicated payment agreements definitely require the help of a tax resolution services expert. There is a lot of documents you’ll need to provide the IRS. In other words, don’t go at it alone. Hire a tax resolution services representative.
How can I Prevent a State Bank Levy?
The best way to avoid a state bank levy is to:
- File your state income taxes on time
- Pay state income taxes when they’re due
Additionally, if you can’t pay what you owe, pay as much as you can. The idea here is to be as proactive as possible. Also, don’t ignore state taxing services. As we’ve said before the states are much more aggressive than the IRS. You don’t want to get on their bad side.
Getting a state bank levy release by declaring financial hardship
If you can’t afford to pay off taxes, or even pay monthly, you can declare financial hardship. In other words, you can apply for Currently Not Collectible status. When you’re under Currently not Collectible, the IRS is not allowed to perform any collection actions on you. However, keep in mind that you will need to show financial proof before being approved for CNC. In other words, you’ll have to prove your financial hardship status to the state. Taxing authorities must confirm that you’ll have no money left over for basic living expenses after paying taxes. However, it’s important to keep a few things in mind when considering CNC.
What to know about Currently not Collectible Status
First, Currently not Collectible status does not clear your tax debt. In other words, you will still have a tax debt while you’re in Currently not Collectible status. However, you just won’t have to pay back taxes while you’re in CNC status. The positive side is being in CNC will give you the chance to come up with a payment plan.
Whether you can pay back taxes, pay monthly payments or are declared CNC, call FinishLine Tax Solutions. We can help you get your state bank levy released and prevent you from getting levied again.
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