If you have had an IRS Bank Levy or a Notice of Intent to Levy, this article is for you.
A bank Levy are a legal seizure of your property to pay a tax debt you owe to the IRS or state. If you do not pay your taxes or make arrangements to settle your debt, the IRS or state taxing authorities may issue a a tax lien, bank levy or seize and sell any type of real or personal property that you own or have. The most common target for these aggressive collections is your bank account. If you operate a business, your business accounts are also open targets, including money that may be held in trust for your clients, to pay vendors, and employees.
A bank levy generally happens only after the IRS takes three steps. First they’ll assess the taxes and send you a Notice and Demand for Payment. Next, you have to neglect or refuse to pay the tax, or make any alternative arrangements with the government. Eventually the IRS will send you a Final Notice of Intent to Levy.
If you have received any of the above letters it is imperative that you or your representative contact the number listed on the letter. You probably would have a revenue officer assigned by this point and that would be your contact at the IRS or state. If you do nothing it is assured that the government will proceed with collection actions.
When you contact the government, you will need to be prepared to submit any missing tax returns that are overdue, as well as stay current with any pending reports. When you have a tax debt you may be eligible for an installment agreement to pay back the taxes, or perhaps you will be able to settle with the government for less than is owed. It depends upon your assets and income compared to the tax debt. If you live in a million dollar house and owe $10,000, plan on paying up. If you are renting but owe a million dollars, you may be able to settle with an Offer in Compromise.
