A
levy on your bank account is the IRS's way of getting your attention. Chances
are, you have been unable to resolve your tax problem to the IRS's satisfaction.
It could be that you have ignored them or they are just plain being
unreasonable. The levy could have been generated automatically by the IRS's
Automated Collection System (ACS) or a Revenue Officer may have issued it.
A bank levy only attaches to the funds in your account at the time the levy
is received by the bank. It does not affect deposits made afterward. Of course
this is little consolation since you probably have outstanding checks that will
likely bounce if the levy is not lifted. The bottom line is - this levy must be
lifted!
The good news is - the money is not gone yet. By law, the bank must hold the
money for 21 days before releasing it to the IRS. This gives you time to work
out some arrangement with them and hopefully, get the levy released.
The levy document itself will indicate which office issued the levy. You will need to contact the person identified on it. This will be a Revenue Officer or Automated Collections. When you call, they will ask you if you can full pay the account - most likely the answer will be no. Therefore, there are only three options: (1) the account can be declared currently not collectible (2) you can enter into an installment agreement, or (3) you can file an Offer in Compromise. Click below for details.
In each of these cases you will be required to complete a Collection Information Statement (Form 433-A or 433-F) or provide financial information over the phone. The purpose of this form is to identify seizable assets and income with which to pay the taxes. The way this form is completed or the answers you provide over the phone are critical. I recommend that you let an experienced professional do it for you. If you do it yourself - please take your time. Do not ever let the IRS do it for you!
If this levy is creating a hardship such as preventing you from buying food or paying your rent, mortgage, electric bill, etc., then you should tell the Revenue Officer or person at ACS that this is the case and ask for immediate relief. If they will not grant it, then you should follow the procedure to request an appeal of the levy. If you are still not successful, you should file an Application for Taxpayer Assistance Order using Form 911 or call contact IRSOS.com for immediate assistance.
Special note: The IRS will not release a bank levy if you have unfiled tax returns. We are experts at quickly preparing unfiled tax returns for levy release. Contact us immediately to start that process.
Copyright 1996 - 2007 by IRSOS.com - All rights reserved.