San Diego Bank Levy
Receiving notice of an IRS levy or lien can be very scary. The thought of the IRS seizing all the money in your bank account when bills are due can be intolerable.
When An IRS Levy Is Issued
When an IRS levy, such as a bank levy, is issued, the bank is legally obligated to freeze any and all your accounts to the extent of the levy amount. So, if you have $5,000 in your bank account, and a levy comes in for $7,000, the bank is obligated to freeze that $5,000 and no longer give you access to it. The bank must then hold those funds for 21 days, which gives you a short period to resolve or negotiate your tax debt. If you have not resolved the debt in those 21 days, the bank must send the money in your accounts to the IRS. Resolution of a debt to avoid your bank account getting emptied is possible, though difficult to a high degree. Should you receive a bank levy, it’s important that you give your chosen representative as much time as possible within that 21 day period to work towards a resolution. The difference between 20 days and 5 days to accomplish a resolution is a lot of scrambling by your representative and yourself to locate and compile necessary documentation.
A Bank Levy Lawyer Can Help
Regal Tax & Law Group, PC never advises taxpayers to try working through a bank levy without professional representation. The law and guidelines in regards to bank levies is precise but convoluted and difficult to understand. At the very least, any taxpayer should reach out and get a free consultation as to what options remain so that an educated decision is made as to how to move forward. Call or email us today for a free consultation, and how you can begin to take steps to prevent a bank levy from occurring again.
According to Fiscal Year 2007 (October 2006 through September 2007), the IRS Enforcement and Service Statistics state that nearly 3.8 million levies were issued against taxpayers. That lets us know that the era of a slower, kinder, and friendlier IRS is over as this was the same time period of the economy falling out but they levied to an extraordinary number. In contrast, only about 200,000 levies were issued in Fiscal Year 2000.
Can You Risk a Bank Levy?
Working towards a debt resolution with the IRS before this type of enforced collection activity is always easier, cheaper, and less stressful. Contact us today to get an individual assessment by an attorney for a debt resolution strategy.
Call 866.849.8566 to speak with a San Diego tax attorney at the Regal Tax and Law Group, P.C.