Wednesday, January 6, 2010

Bank Levies?

Has the IRS ever threatened to Levy your bank accounts? Has the IRS ever taken money out of your bank account? If so, it is imperative to know how to handle a situation when a levy arises.

First and foremost, please give us a call to consult as it will be difficult to get a levy released or any money back once you have been levied. However, the IRS will consider a release based on a few items; has the levy caused a hardship, caused payroll to bounce, or caused current taxes to go unpaid? When we deal with ACS specifically or a Revenue Officer it is important to make a case before one calls the IRS and complains about the levy. A taxpayer or representative must know a few things first:

- Has the levy actually frozen monies yet?
- Has the levy caused checks to bounce?
- How much has the levy frozen?
- What bank accounts, how many accounts, and at which bank was the levy applied to
- Obtain the fax, phone, and contact for the legal department through the bank handling the levy (this may be different than the actual branch bank)?
- What items will not clear or be paid due to the levy (payroll, tax deposits, lease, mortgage, unpaid bills, etc.)?
- Will the levy cause a hardship (foreclosure on home or business location, 3 day notice to vacate on a lease, shut off notice from Electric or Power company, water turn off notice, etc.)?

The above items will assist us in preparation for dealing with a possible release. Remember, there is only a 21 day time period on bank levies, therefore, a taxpayer or his/her representative must act quickly. Once the money is gone, it is gone.

If you are dealing with a levy, or have been threatened by an IRS representative or communication indicating you will be levied, call immediately to discuss the possible resolution thereof.