Receiving notice of an Internal Revenue Service (IRS) bank levy or lien is frightening. The thought of the IRS seizing all the money in your bank account when bills are due can be overwhelming. If you are facing an IRS bank levy, that’s the time to call Regal Tax & Law Group, PC.
For over 10 years, we have provided individuals, families and small business owners with powerful representation against the IRS. Our experienced San Francisco tax attorneys have the skills and experience to stop a bank levy and work towards a debt resolution with the IRS.
We combine the sophisticated advice of a large firm with the personal service of a boutique practice. Please contact our office today for a free consultation to learn how our tax lawyers can stop your IRS bank levy.
What is an IRS Bank Levy?
The IRS has the power to seize your property through a levy to enforce a tax debt. One of the most common types of levies in California is an IRS bank levy. When the IRS issues a bank levy, the bank is legally obligated to freeze any and all your accounts to the extent of the levy amount.
As an example, 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. In addition, if the IRS bank levy does not seize the full amount of back taxes owed, the IRS can continue placing levies on your bank account as additional funds become available until the tax debt is paid.
Before the process starts, the IRS will send you a Notice and Demand for Payment. As the name implies, the notice informs you that you owe “x” amount in back taxes, plus any interest and penalties assessed by the IRS.
If you fail to pay the full amount owed, the IRS will send a 30-day levy notice, Final Notice of Intent to Levy and Notice of Your Right to a Hearing, to your home or business. You have one last opportunity during the 30-day period to resolve your back taxes with the IRS before they issue a bank levy, and our tax attorneys are here to help.
Once a bank levy has been issued, resolving the tax debt to stop your bank account from being depleted is possible, though difficult to a high degree. If you have received one, it is critically important to give our legal team as much time as possible within that 21-day period to help you locate and compile necessary documentation. Don’t delay. The sooner you contact our office, the sooner we can start working on resolving your bank levy.
How Regal Tax & Law Group, PC Can Help
Although the law and guidelines governing bank levies is complicated, working with an experienced tax lawyer can help you make an informed decision about how to move forward. When you consult with us, we will explore all your options, including:
- Collection due process hearing — Before the IRS initiates the bank levy process, you can request a collection due process hearing pursuant to the 30-day levy notice mentioned above. During this hearing, we will look to assert valid defenses against the levy. Of course, the strongest defense is that you paid the taxes in full, however, we may also be able to show that a procedural error was made in the tax assessment, that a financial hardship is present, or that the collection statute expiration date has expired.
- Payment of taxes in full — If you are able to pay the full amount of your back taxes, plus interest and penalties within the 21-day period following the IRS notice of levy, the IRS will immediately release the levy that has been placed on your bank account.
- IRS repayment plans — It may be possible to enter into a monthly repayment plan with the IRS that allows you to repay the back taxes that you owe over time. You can get back into good standing with the IRS as long as you make the monthly payments.
- Financial hardship — In cases of serious financial hardship, the IRS may declare the back taxes “currently not collectible.” In this situation, the back taxes are taken out of active collection for up to 12 months. This is only a temporary measure until your financial situation improves and you can pay back the taxes, plus interest and penalties.
- Offer in Compromise — This IRS program allows qualifying taxpayers to settle their tax debts for less than the total amount owed.
At Regal Tax & Law Group, PC, we know how to stop your IRS bank levy and will provide ongoing counsel on steps you can take to prevent a bank levy from recurring.
Contact Our Experienced IRS Bank Levy Attorneys
If you are involved in a tax controversy and facing a bank levy, don’t go up against the IRS alone. The federal agency has vast resources at its disposal to enforce the tax laws which puts you at an unfair disadvantage. Let Regal Tax & Law Group, PC level the playing field and help you fight back against your IRS bank levy. Please contact our office today for a free consultation.