My bank account has been levied by IRS.What can I do?
My bank account has been levied by IRS.
What can I do?
Nothing is scarier than finding out IRS has levied your bank account and now you can’t pay your rent or mortgage. You need to act fast. Financial institutions are required to hold the levied funds for 21 days before sending them to IRS. That gives taxpayers a small window of time to work out a resolution with IRS. In some cases, IRS may be willing to release the levy completely or agree to a partial release of levy. The IRS is required to release a levy if it determines that:
- You paid the amount you owe,
- The period for collection ended prior to the levy being issued,
- Releasing the levy will help you pay your taxes,
- You enter into an Installment Agreement (HYPERLINK TO PRACTICE AREA) and the terms of the agreement don’t allow for the levy to continue,
- The levy creates an economic hardship and you qualify for currently not collectible status (HYPERLINK TO PRACTICE AREA), meaning the IRS has determined the levy prevents you from meeting basic, reasonable living expenses, or
- The value of the property is more than the amount owed and releasing the levy will not hinder our ability to collect the amount owed.
Ms. Pless has extensive experience dealing with IRS in these types of cases. Call today for a free consultation.