When the IRS or state has failed repeatedly to collect back taxes from either individuals or businesses, they begin to seize assets. This process comes in two forms: wage garnishments and levies. A wage garnishment attaches a percentage of a taxpayers wages, but an IRS levy attaches an entire asset, such as a bank account or property. IRS levies, especially bank levies, can be incredibly damaging, as they empty accounts overnight and leave the taxpayer or business scrambling.
Bank accounts, investment accounts, equipment, accounts payable, and property are all open for attachment. After providing ten, thirty or sixty day notice through certified mail, the IRS levy process begins. An IRS levy or bank levy can be some of the harshest and debilitating collection tactics enforced, as they reveal your private financial burden to your vendors, people you do business with, and can greatly impact operational cash flow.
Many taxpayers and small businesses admit that an IRS bank levy is one of the most crippling forms of collection they have ever gone through, as money to pay bills is immediately seized to pay off their tax debt and they are left rushing to make ends meet. In many cases, they end up trying to contact the IRS or State in a panic to get the levy reversed, only to get deeper and deeper into financial distress. The truth is, an IRS levy is one of the most difficult tax relief issues to negotiate, but with the right representation, they can be reversed FAST.
If you’ve received a bank levy, banks will generally remit the funds to the taxing authority after thirty days, and will only release funds back to your account if the IRS or State advises them to. The IRS or State has issued a bank levy because you have avoided paying your tax obligation. They have sent notices, made phone calls, and have given you ample warning that the next step they will take is to begin seizing assets. Because their letters and demands have been ignored, they have gone into your bank account and taken as much as possible to satisfy the tax debt.
So how do you get the IRS or State to reverse these bank levies so that the money taken is replaced? There are many different scenarios for this, but for the most part funds will be reverted back to the taxpayer if they are brought into compliance. Our staff of tax professionals can walk you through your options, helping to get you back on your feet and bank levy free!
The first step towards successful resolution is to acknowledge that your tax debt and IRS levy won’t go away on their own and to seek professional assistance. Our firm of tax relief attorneys and tax relief professionals has helped thousands of individuals and businesses just like you stop forced collections and finally resolve their tax debt.
Our tax relief professionals will take the time to discuss your IRS levy issue free of charge, and help map out the best solution moving forward. Rest assured, all information is confidential, and nothing will be shared.
We understand that you have many options when it comes to choosing the right tax relief firm, and we welcome the opportunity to help you patiently through this process and bring closure to this important financial consideration.