When the IRS issues a notice that it intends to levy and seize your assets you have 30 days to challenge the tax levy to attempt tax resolution or pay the amount due.
If you cannot pay your tax debt in full on the date you receive the letter or before the IRS is scheduled to seize your assets, you may be able to remove the tax levy with proper tax resolution by setting up an installment plan with the IRS or by other arrangements.
The best plan is, of course, to avoid the levy. So, DO NOT ignore this letter.
The Best Ways to Release a Tax Levy
- Pay Your Debt in Full
- Enter an Installment Agreement
- Demonstrate Undue Hardship
- File an Offer in Compromise (OIC)
- Negotiate a Release of the Levy
IRS or State Bank Levies
An IRS bank levy on your bank account is a freeze on all the transactions. Simply put, it means that all the pending transactions will not be paid, you can incur in additional bank charges due to the levy, and you won't have access to your funds to pay your daily living expenses.
The IRS will not levy a bank account, wages or property unless certain requirements are met. The requirements are:
- The IRS assessed a tax and sent the taxpayer a Notice and Demand for Payment.
- The taxpayer refused or neglected to pay the tax.
- The IRS sent the taxpayer a Final Notice of Intent to Levy and Notice of Your Right to A Hearing 30-days before the levy.
So, you are given plenty of time to work something out with the IRS before the levy goes into effect.
Bank levies should be avoided at all costs!!!
If you would like to know your options, please contact us for a free consultation. Whether you retain our services or not, you will still have a clearer idea about what you need to do and the IRS' collection process.