An IRS bank levy is the legal seizure of your property to satisfy a tax liability. The collection power of a levy is very serious and must not be confused with a lien which is used as security for a tax debt. A bank levy allows the IRS to actually take your financial and personal assets. The IRS can levy assets belonging to the taxpayer, known as a seizure, or it can levy assets from a third party such as a bank, a brokerage house, etc.
The most common types of levies are:
- Bank account levy
- Wage garnishment on salary, and social security
- Asset seizure of personal property
The IRS will issue a levy after the following requirements are met:
- The tax has been assessed
- Notice and Demand for Payment has been sent
- A Final Notice of Intent to Levy and Notice of Your Right to A Hearing have been issued
- These notices are sent at least 30 days prior to generating the levy
If you do not respond or pay the tax after all these conditions have been met, the IRS can issue a levy. Many of the levies imposed by the IRS are automated and difficult to prevent. The IRS can also issue a levy if you renege on any previous agreement made with them.
Taxpayer actions that prompt levy assessment are:
- Defaulting on an Installment Agreement
- Failing to file past due tax returns on the promised date
- Failure to pay the amount promised
Under all circumstances when the IRS threatens a levy, you must ensure you have adequate representation. The tax professionals at Instant Tax Solutions (ITS) are experts in IRS negotiations. Attempting to negotiate with the IRS on your own can lead to less than favorable results.
IRS Levy Help
Need help with an IRS bank levy? Instant Tax Solutions can help you with any type of IRS levy problem. We have been very successful in getting IRS levies and wage garnishments released quickly. Open communication with the IRS may prevent the levy process. It is wise to deal immediately with the IRS to avoid levy rather than wait until after the levy is issued. With cooperation prior to an issued levy, your ITS representative and you will be in a stronger negotiating position. Instant Tax Solutions can stop an IRS Bank Levy or Wage Garnishment in 24 hours.