Bank Levy Release
What is a Bank Levy?
What is a Bank Levy Release?
A bank levy release makes it so that your bank account can no longer be seized. There are a number of ways to receive a bank levy release.
The first method you can use for a bank levy release is to respond to the notice of levy before the 30 day period ends. You can prevent the IRS from freezing your account and seizing the money in your account by:
- Paying your tax debt in full
- Opting for an installment agreement
- Requesting a Collection Due Process (CDP) hearing
What is a Collection Due Process Hearing?
If you receive a Notice for Intent to Levy, you are given 30 days to respond to the notice. You can request a Collection Due Process hearing which allows you to persuade the IRS not to levy your bank account for a number of reasons, such as:
- Paying your tax in full.
- Filing for bankruptcy during the time the tax debt was assessed.
- The correction was incorrectly assessed
- The collection was assessed after the statute of limitation.
What If I’ve Passed the 30 Day Time Frame and My Bank Account Has Already Been Frozen?
- Levying your bank account would cause financial hardship and make it impossible for you to meet your basic living needs.
- The bank levy would make it more difficult for the IRS to collect the full tax debt.
- You are behind on other bills.
- You’ve amended the tax return for which you received the debt and it shows that you do not owe the debt.
- The levy was issued due to an error on the part of the IRS.
- You opt for an installment agreement.
- You file and are approved for a Currently Non-Collectible status (CNC)
- You file and are approved for Offer in Compromise (OIC)
Next Steps:
It is essential to contact a tax professional in a timely manner once you receive a Notice of Bank Levy so that you can avoid further complications and liability. Just give us a call and we can assess your specific tax situation in order to find the best way to receive a Bank Levy Release. See more IRS tax resolution services.