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Can Can The IRS Levy Seize My Bank Account - Yes - IRS Tax Lawyer

The IRS can legally seize, levy your assets to satisfy an income tax debt. When the IRS sends a tax levy to your bank, the levy attaches to all the funds in your account at the time. Your bank is required to give your money to the IRS once a 21 day period elapses. You have twenty-one (21) days (includes Saturday, Sunday and holidays) to have the IRS release your money back to you. You have no time to lose.

IRS Actions Before Issuing a Bank Levy

The IRS will not levy and seize your bank account(s) until the IRS has sent you several notices of your obligation to pay your income tax debt. The IRS must make a tax assessment against you and send you a Notice and Demand for Payment.

If you do not respond to this notice or refuse to pay the income tax debt, the IRS may send additional notices before finally issuing you a Notice of Intent to Levy and Notice of Your Right to Hearing. This must be sent to you at least 30 days before the levy.

You have a right to this hearing, known as a Collection Due Process (CDP) hearing, if you respond to the notice within 30 days. If you request a hearing, the IRS cannot levy your bank account until after the hearing. This is why it is critical that you take action immediately if you have received a Notice of Intent to Levy.

At the CDP hearing, you can negotiate an IRS settlement through the Offer in Compromise program or enter into an installment agreement. You can also dispute the amount if you believe the IRS has made a mistake in assessing the tax, provided that you haven’t had a prior opportunity for an appeal. If you are unable to negotiate a deal, you can live with at the CDP hearing, you have the option of filing a petition in Tax Court. Tax Court is not your best option.

What to Do Once a Bank Levy Is Served?

GET YOURSELF AN EXPERIENCED IRS TAX LAWYER

If you missed your chance to have a CDP hearing and the bank levy has been served, your bank must hold onto your funds for 21 days before handing them over to the IRS. This short delay gives you time to negotiate or otherwise stop the levy before the IRS takes your money. The levy freezes the funds in your account, so you will not be able to avoid the levy by withdrawing funds.

HAVE YOUR IRS BANK LEVY STOPPED BY USING AN IRS TAX LAWYER

It is much better to negotiate with the IRS while your money is still in your possession. You may have several options for disputing your tax or negotiating a payment agreement, and they are all preferable to an IRS bank account levy.

If your bank account has been levied, contact an IRS Tax Lawyer immediately. This is your only hope.

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