An IRS Tax Levy On Your Bank Account Can Immediately Freeze Your Assets With No Access to Your Money
If you owe back taxes to the IRS, you may be in danger of receiving a tax levy on your bank account. Once the IRS places a tax levy on your bank account, the bank will be required to immediately freeze your assets, meaning you will have no access to your account. You have 21 days from the placing of the tax levy to pay your back taxes in full. Fail to do so, and your bank will be obligated to send the money in your account to the IRS.
Stop IRS Bank Levies A bank account levy is not the only type that the IRS can place. A levy can be placed on any of your property, including your home or vehicle. The levy means that the IRS is seizing the title to the property, and will retain the property should you fail to pay your back taxes in a timely manner.
You will have a ten day notice before a levy is placed. If you can pay your back taxes in full, this ten day period is the time to do so. If you cannot, you can remove a levy by filing for a Stay of Collections. A Stay of Collections will give you up to ninety days to find a solution to your tax debt problem.
What if you cannot afford to pay your back taxes in full? If you cannot afford to pay your back taxes, it is possible to remove a tax levy and return to good terms with the IRS. Making payments to the IRS in installments can help you catch up with your tax bill, and it is even possible to settle the debt for less than you owe and make payments on the lowered amount. Can’t pay your tax bill at all due to economic hardship? You may be eligible to be placed on the IRS’s Currently Not Collectible list, which temporarily stops any IRS attempt to collect, including the placing of a tax levy.
If you need to remove a tax levy, the first step is to hire a tax firm experienced at working with the IRS. Smart Business Tax Solutions has decades of experience fighting the IRS for their clients. Smart Business Tax Solutions has the knowledge of IRS policy and procedure, and can aggressively pursue a settlement for your tax debt.