BANK LEVY
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Dealing with daily financial challenges can be overwhelming, and the last thing you need is an unexpected bank levy. A bank levy is a legal action taken by the IRS to seize funds from your bank account to satisfy unpaid taxes. It allows the IRS to take a specified amount of money directly from your account, which can include your savings, checking, or other deposit accounts. The major issue taxpayers face while dealing with bank levies is that it can happen without a warning, leaving you with limited access to your funds. Only the bank receives the notice from the IRS/state.
Why Have You Received A Bank Levy Notice?
Receiving a bank levy notice can be quite stressful. However, these notices won’t come out of nowhere. Certain rules and laws are neglected which forces the IRS to take such an action against taxpayers. These include;
- Unpaid Tax liability: Bank levies are charges against unpaid taxes. If the IRS/State notices that you have ignored the tax deadline, and have not connected the IRS/State to resolve your unpaid tax, a bank levy will occur. Usually, a final notice of evv is issued before a collection action occurs. Then the IRS can charge a bank levy notice against your account.
- Notice: The IRS/State is required to send you a final notice of levy and a notice of your right to a hearing. these notices provide you with an opportunity to address the issue before a levy is imposed
- No Response: If you do not respond to the notices or take appropriate action the IRS can proceed with the levy.
How To Deal With A Bank Levy
Bank levies can affect a wide range of individuals including business owners, self-employed individuals, and even freelancers. If an individual taxpayer faces a bank levy, his business is also at risk and can be seized by the IRS. Facing a bank levy can be stressful, but there are steps you can take with our help.
We will contact the IRS on your behalf to work on the bank levy release. With the IRS bank levy, the bank will hold the funds for about 21 days before funds are sent to the IRS. The states are about 10 days to 2 weeks depending on the state. You must know the date the bank is going to send the funds to the IRS/state, the bank fax number, and the list of bills you are unable to pay to negotiate a bank levy release.
Here’s How LifeBack Tax Relief Helps You?
We alleviate your stress and help you overcome the challenges arising from IRS/State bank levies. After all, we are aware of how harmful these IRS/State bank levies are especially when trying to meet your monthly expenses. Once retained, we will contact the IRS immediately to place a collection hold on all future enforcement action. We would need a list of all your monthly expenses that you are not able to meet due to the bank levy. The taxpayer needs to know when the bank is going to send the funds to the IRS and the bank fax number. Our goal would be to secure a full or a partial bank levy release.
How does the whole bank levy procedure actually work?
Well, to initiate a bank levy, the government agency sends a notice to your bank. This notice is a request to freeze your account’s funds. So, when a bank receives the notice, it holds the funds for one or two weeks in case of the state bank levies and 21 days in case of the IRS levy. Ultimately, after that certain period, the funds are sent to the agency.
Are there any funds exempt from bank levy?
For the IRS, none of the deposits to your account are exempt from the bank levy but some states do exempt certain amounts from state bank levies such as social security income, child support payments, food stamps, etc. For further information or expert consultation, call us today.
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