The IRS frequently attacks by filing a levy with your bank. This attack wipes out all of your bank accounts, even jointly owned accounts, held in that bank. Without immediate action, you are left unable to pay your bills, including your rent or mortgage, your electric, telephone, your car payment and the money needed to feed your family.
Contact a Tax Lawyer NOW
Bank levies can be stopped! However, you only have 21 days to stop the levy and get a Bank Levy Release.After the 21 days, the bank automatically sends the money to the IRS and you are stuck!
Levies are late in the Collection Process
The IRS Collectors, known as Revenue Officers send official IRS notices, make threatening calls, and send letters demanding payment. If you either did not get the letters (if, for example the IRS is using an old address) or you did not respond the IRS will start “Enforcement Action” to take your money to collect the delinquent taxes.
The IRS knows your bank accounts from the 1099’s filed every year. A Bank levy is not difficult for the IRS. The Revenue Officer simply prints out the forms from the computer showing the name and address of the financial institution (Banks, Credit Unions, Stock Brokerage Accounts) where you keep your money.
How the IRS Levies
The IRS sends
- a Notice of Levy to the bank listing the amount of taxes you owe.
- The IRS Levy requires the Bank to freeze all the money in your accounts on the day of the levy.
- This includes joint accounts, or any accounts with your Social Security Number.
- The funds are frozen for 21 days and you can not use them.
Typically, checks will “bounce” for Insufficient Funds and you will incur substantial bank fees. The bank hold the frozen funds for 21 days.
You Must Act!
During the 21 day period your tax attorney can negotiate with the IRS to release the funds. Unless a Release is obtained, once the 21 day period has expired, the bank sends the money to the IRS you will never get it back!