An IRS bank levy is the legal seizure of your property to satisfy back taxes. The collection power of a levy is very serious. A bank levy allows the IRS to actually take your financial assets. The IRS can levy assets from a third party such as a bank, a brokerage house, or another financial institution.
Under Sec. 6331, the Secretary of the Treasury is authorized to collect delinquent taxes by levy. This authority is delegated to Revenue Officers and the Automated Collection Systems of the IRS.
The IRS will issue a levy after the following requirements are met:
If you do not respond or pay the tax after all these conditions have been met, the IRS can issue a levy. Many of the levies imposed by the IRS are automated and difficult to prevent.
If you have received a Notice of a Bank Levy, time is of the essence. When this occurs, your bank is legally obligated to freeze all of your accounts for 21 days. During this time, you have the ability to resolve your back tax debt with the IRS. If you do not take action to full pay your tax liability during this time, the bank sends your funds to the IRS to cover your tax debt. Once the bank has sent your money to the IRS, it is almost impossible to obtain a refund and get your money back.
Here at Platinum Tax Defenders, we have been successful in getting IRS bank levies released. A bank levy is much more difficult to release than a wage garnishment, and can only be done by showing imminent financial hardship due to that levy being in place. The better process is to prevent the levy from ever occurring. Open communication with the IRS may prevent the levy process. If Platinum Tax Defenders’ professionals deal immediately with the IRS, they can avoid levies and deter them from occurring, rather than wait until after the levy is issued.
Do not wait until you receive a bank levy notice, once you receive the “Final Notice of Intent to Levy” letter, immediate action on your part is necessary, and representation is vital to protecting you and your family from collection actions.