When your debt situation becomes serious, the IRS has the fatal option of enforcing a levy into your bank account. This is a financial judgement where the IRS or a creditor can force a debt repayment plan by extracting your bank funds automatically. This typically happens when the debt is hugely significant or even delinquent. For your protection, there are ways to remove or even stop this IRS levy.
A bank levy is typically compared to a silent assassin because it strikes fast and it strikes hard. Although the IRS provides a warning that they will enforce a levy in your account, the time to act is relatively short. In no time, the IRS can move in to withdraw funds from your bank to pay your debts.
When the IRS is successful in enforcing a levy, your accounts will be frozen until such time when your debts are paid. Afterwards, the money in your bank will be directly funneled to the IRS. Obviously, this can be a very stressful and problematic situation if you don’t work to end this levy.
Removal of IRS Levy
Alternative Options to Offset an IRS Levy
When the IRS sends letter after letter to you giving you a deadline to settle your debts, you are nearing the boiling point. Their last and most powerful weapon: the letter of intent to levy your bank account. Once you receive this letter you have about 21 days to respond.
For your immediate response, you can submit a form 12153 in order to request for a Collection Due Process Hearing. This will give you a leeway of about thirty days to settle with IRS an alternative method of paying your debts. While you are negotiating with them, IRS will stop any collection activity. The following are options you can pursue to help you avoid a bank levy:
If the Collection Due Process Hearing does not work out for you, your bank account will be subjected to a bank levy. You will not be able to access your funds. To counter this, you need to seek the help of a attorney who understands tax laws to negotiate with the IRS to have your lien removed.
Our New York tax law firm offices are located in New York State but we are able to help you in any state across the country. We can work with you no matter where you live. Mr. Hart is licensed to deal with the IRS in every state in the entire country.