What would lead to the IRS to levy your bank accounts or other property? The legal seizure of your accounts or property is an extreme measure the IRS could take to satisfy a tax debt. If you have been ignoring the IRS when it comes to filing tax returns or making payments on your taxes, this extreme measure may be used to get your attention. Nothing will quite get your attention as your bank stating that your accounts are essentially frozen due to an IRS levy.
How many letters did you receive from the IRS? If you failed to open the letters and respond to the IRS, the levy process most typically begins with the IRS assessing the and sending a Notice and Demand for Payment. With no payment made or contact initiated to the IRS, the next notice possibly sent through certified mail, is a Final Notice of Intent to Levy and Notice of Your Right to a hearing at least 30 days before the levy action.
Most commonly I have heard of bank accounts being subject to an IRS levy. I some cases the frozen funds can be made available for you the taxpayer. Each taxpayer's circumstances are unique.
The best solution for an IRS levy is to never get an IRS levy. Stay compliant and make your tax payments in a timely manner.
However, if you do receive a levy notice taking quick action is highly advised. I recommend you do any or all of the following:
- Hire a tax professional (EA, CPA, or Tax Attorney) to assist you through this process
- Collect documents and records to build your case
- Request a Collection Due Process hearing or
- Prepare to make a payment in full, arrange a payment schedule, or if qualified file for an offer in compromise.
Ignoring a tax levy can lead to severe financial consequences. Immediately working to resolve the issue with a tax professional will help you quickly resolve the issue. As you work with a tax professional toward a resolution, you will be able to sleep better an minimize the impact on your financial well-being.
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