What Is the Levy Process and How
to Stop Bank Levies
A levy can be compared to snapshot of your account. The money that is available for withdraw from that account at the time the bank receives the levy is what can be taken by the IRS or state. Future deposits are safe and deposits that have not available for use are safe as well. The levy can be placed on most types of accounts such as checking, savings, money market, etc. If you have joint account all the money can be taken out of that account even if the other account holder does not owe taxes.
The bank that your account is with is required to hold the funds being levied for 21-days. This servers a few purposes. If the wrong account/customer has been levied then the problem can be quickly fixed by the bank, if you want to try and attempt to request the IRS or state to release the levy, or if there is an innocent account holder of a joint account that wants to try and attempt to have his/her portion of the account released. Keep in mind that the innocent account holder of a joint account will have to provide proof as to which portion of the funds are theirs.
The IRS or state uses this tactic to attempt to collect on individuals that have ignored the request of the IRS or state for a repayment of the delinquent taxes. If you ignore the IRS or sate long enough they will eventually track down your account using your social security number and you can bet they will attempt at least one levy and maybe more.
The IRS or state will issue you a demand for payment. After the demand for payment the IRS or state will then have the option to a bank levy. However they must send you a letter notifying you that they are going to levy before they can levy, this is simply called A Notice of Intent to Levy. You would have been given at least two warning prior to the levy being issued.
The best way to stop a bank levy is to prevent a bank levy. The best thing you can do for yourself is to make sure that you don’t ignore the IRS or state if you them money. If you owe them money they want it. For more information on how much you have to pay back you can read our blog, How Much Do I Have To Pay Back.
By keeping the lines of communication open with the IRS or state and working on a repayment solution with them, you can protect your bank account(s). And remember, just because you reach out to the IRS or state doesn’t mean you have to start making payments or that you even have to pay back the full amount.
You don’t need to pay thousands to have an industry expert help you - you can do this all on your own. However you don’t want to just reach out to the IRS or state without being prepared. To discover how to prepare yourself to settle your delinquent tax debt for the least amount visit our website at www.TheTaxSettlementGroup.com or call us at 877-801-9166. We can show you the way to protect your assets and arrange to resolve your tax debt for the least amount possible.
