Imagine you wake up one morning and on your way to work you stop at a coffee shop, only to find out that your bank card has been declined. What a terrifying and humiliating experience that could turn out to be! This is what happens when the IRS levies your bank account.
If you have received an IRS notice indicating an attempt to levy your bank accounts, it’s time to take this notice as a serious threat. Since the IRS has not gotten your attention with prior requests for payment, this aggressive action is usually the last step before they take your money.
A levy is different than a lien in that it is the actual seizure of a taxpayer’s property by the government to resolve a back tax debt. By law, the government must give written notice as a warning before going against someone’s asset. Each taxpayer has a set of fundamental rights they should be aware of, and the Due Process Rights is one of them. Taxpayers must be informed of their due process rights and given the choice to exercise them.
There are two common types of levies: A regular type of levy— is one that seizes assets of the taxpayer for a particular period of time. A continuing levy stays in place and continues to seize the earnings of the taxpayer until the debt is released by the IRS. The continuing levies can cause real economic hardship, since it’s ongoing and can have adverse impacts on a fixed budget.
The IRS can also levy retirement accounts, social security and third party creditors that owe money to the taxpayer.
If you or anyone you know has been threaten by the IRS levy notice, or even worse, the money has already been withdrawn, we can help. As a Tax Resolution specialist firm, we can engage and fight with the IRS on your behalf.