In order to collect back taxes the IRS can freeze or seize part or your whole bank account . This is usually referred to Bank Account Garnishment or a Bank Account Levy. The IRS will notify your bank and seize your bank account with a "Notice of Intent To Levy." However, this seizure is only at that specific day. In other words, they can only seize the money you have at the time of the initial bank account levy.
If you have been hit with a Bank Account Levy, sign up quickly for a Bank Account Levy Release Consultation as you only have 21 days to release the levy (stop the money from going to the IRS and have it returned to you). Once your bank receives the Intent to Levy letter they will hold your funds 21 days before sending it to the IRS so have us contact you today before you lose your money.
What Do I Do If The IRS Already Seized or Levied My Bank Accout?
Filing a claim for reimbursement if the IRS as mistakenly levied you is the 1st step. Next, get a Bank Account Levy Consultation To Appeal to the Tax Court. Use Form 8546 (PDF), Claim for Reimbursement of Bank Charges Incurred Due to Erroneous Service Levy or Misplaced Payment Check.
What Happens Before A Bank Levy?
Many states have different laws around tax levies. With the IRS, they follow a strict protocol. Here is usually how it works:
1) The IRS sends you a by mail a Notice and Demand for Payment:
2) You do not respond or refuse to pay the taxes
3) The IRS will then send you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before they levy. They can give you this letter in person, or send it to your address or place of business. If they levy your state tax refund, then you will Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.
Typically, you can call and ask for the IRS to provide you a manager to review your case, or you can ask for a Collection Due Process hearing with the Office of Appeals by writing the IRS office at the bottom of your notice. You need to file your request within 30 days of the day in your notice. Some of the issues you may discuss with them:
* You paid all taxes due before the IRS levy notice was sent
* There was a miscalculating or ill an assessment regarding your taxes
* The legal time to collect the tax expired (aka statute of limitations) before the tax levy was sent
* You wish to discuss the collection options, and never had an opportunity to contest the total taxes due
* You are planning to use spousal defense or proceed needing Innocent spouse relief
