The generally used method that a levy is issued would be to “freeze” everything in your bank account. This is recognized as a bank levy. There are also additional ways a levy can be delivered and that is through seizure of your property or wage garnishment.A Tax Levy delivered by the Internal Revenue Service (IRS) is a legal seizure of your property or assets to fulfill your outstanding tax liability. For your account to have an IRS levy delivered, significant delinquency must occur. This correlates with tax liability that is owed on your personal or business federal tax accounts.Once your account has attained a certain level in the Collections Unit then it must be referred over to a special agent that will authorize and issue all IRS levies. This action will be completed by a Revenue Officer or another managerial agent only,located in all of the IRS’ government sections.
Before the levy is issued to collect taxes, the IRS must notify you with a Final Notice of Intent to Levycorrespondence. This correspondence is commonly referred to as a CP504. A FinalNotice of Intent toLevy will enableyou the Right to a Hearing. This Hearing isidentified as a Collection Due Process, or CDP. If you do not agree with the levy or lien that has been assessed against you then you must file a Collection Due Process Hearing request immediately. You havewithin 30 days of when your CP504 was received to file the request.To ensure proper results, do not wait until the last minute to request your hearing. Once you made the request, you will be granted time on the accountto compile a plan of resolution. By requesting the CDP when you receive a CP504 notice, it can greatly diminish your probability of difficultiesarising. You can also file a CDP Request when a tax lien has been filed against you or attached to your property. A Tax Lien is different than a tax levy because it is attached to your property to secure the payment of taxes. Likewise, A Tax levy is attached to your wages or bank to secure the funds in your account for the payment of taxes.
If you received a CP504, Final Notice of Intent to Levy, then you must communicate with the Internal Revenue Service promptly to resolve your account and attempt to get the levy or lien released. Utilizing the help of a team with expert tax professionals, such as Omni Tax Help,we can negotiate on your behalf to secure your money and assets from being undertaken. Do not wait until the last moment to address an Internal Revenue Service bank levy because with the help of a tax expert you may be able to have your funds released in a significantly shorter time.
When an IRS Levy has been issued to your bank, they are required to hold the entire funds in your account for 21 days.The bank levy can be issued to your checking and savings accounts. The bank is not allowed to release the funds to the Internal Revenue Service until that timeframe has passed. The 21 days will begin on the day that the Levy notice was received. A copy of the levy will be given to your bank and you may request your own copy of this information at any time. With one notice being sent out, the IRS bank levy can obtain all the funds in every single account you have. We are talking every penny that is in there! This has got to be one of the scariest, startling and most unsettling feelings described. However, the Internal Revenue Service will levy when they see that your tax problems have been a continuing issue for quite some time with no attempt to resolve the tax liabilities. Do not jeopardize your financial freedom with noncompliance. Omni Tax Help can help give you that peace of mind you deserve.
Everyone’s question after a bank levy is delivered is What do I do next? Once the bank transmits a levy to your account it can only freeze funds that are currently in there. It will not affect future deposits. There is a chance to release the levy, but timely submission of information is important. When a levy is issued you have 21 days to contact the Internal Revenue Service and settle your account. If no resolution is made, the Internal Revenue Service will obtain possession of all the funds being held.Determined by your overall financial situation and specific case with the Internal Revenue Service you may be able to utilize the countless alternatives of resolving your account. To settle your account, all missing tax returns must be submitted. Quickest method to resolve is by establishing an Installment Agreement. It is easiest to submit financials over the phone with the Internal Revenue Service. Sometimes, if the IRS feels that you can pay more than the agreement they are setting up; they may reject your proposal. A common way to release levy funds would be to prove that by having the IRS take the funds, it will cause your family a financial hardship. You will have to demonstrate that your unable to pay for basic household expenses if there are no funds in your account. There is also an additional avenue to resolve the account through the Offer in Compromise program. The Offer in Compromise program gives you the opportunity to present a full financial analysis of your income, expenses, and assets. Determined by your ability to pay along with the value of the assets you own, an offered settlement amount is made to satisfy the outstanding tax liability. Commonly, the settlement amount is significantly lower than the actual amount of liability that you owe to the Internal Revenue Service.It is best to consult a tax professional because reaching an agreement with the Internal Revenue Service, especially in a short period of time and while under pressure, can be quite challenging.