Dealing with the IRS is not a walk in the park, especially when a taxpayer has a huge unpaid tax debt. Yet for every problem there is a solution, and we at Tax Defense Network have that solution. We know how to find the path that will resolve any kind of tax debt problems you may have. Tax Defense Network specializes in helping taxpayers who have suffered from an IRS bank levy, and we work to stop the bank levy, or make a case to get the money back. All while we negotiate an affordable resolution with the IRS.
Tax Defense Network: Facts about the Bank Levy
The IRS uses a bank levy when it is unable to collect a tax debt and the taxpayer has yet to enter into a payment resolution. The IRS sends notices regarding the payment of the tax debt before starting a bank levy. A levy is issued if:
- The notices are ignored.
- The taxpayer is being uncooperative or unresponsive.
- The taxpayer has defaulted on payment plans.
If no attempt has been made to pay back the tax debt and correspondence by the IRS is ignored, the IRS will freeze the bank account(s) of the taxpayer to get whatever it can to apply to the tax debt amount. The IRS prefers a bank levy to a wage levy because it can get a lump sum rather than smaller amounts every pay period.
Tax Defense Network: The Process of the Bank Levy
An IRS bank levy is a legal method where the IRS tells the bank to freeze the account of a taxpayer due to non-payment of taxes. Before the IRS freezes an account, it sends out “CP 90: Final Notice of Intent to Levy and Notice of Your Rights to a Hearing“. This final notice informs the taxpayer of the IRS’ intent to levy on certain assets. They also inform the taxpayer of the steps they need to take within 30 days to prevent this action.
After 30 days of no contact, the IRS will freeze the accounts. The IRS contacts the bank to find out the amount in the account. It will not inform the taxpayer about the freezing of accounts. The IRS can seize any kind of account, such as a savings account or checking account. The bank holds the funds for 21 days to resolve any questions about the ownership of the account. After 21 days, the bank must to send the funds to the IRS.
Tax Defense Network has saved many taxpayers from the devastating effects of a bank levy. Our course of action depends on the individual taxpayer’s situation, but we take all steps needed to prevent collection actions like a bank levy.
With our specialist team of licensed tax professionals, tax analysts and even an ex-IRS revenue officer, we have resolved complicated and difficult tax problems and stopped collections like a bank levy to the full satisfaction of our clients. Our team is proud to give their best to each of our clients, making Tax Defense Network a respectable name in the tax industry. Call Tax Defense Network today for an effective resolution of your tax troubles.