If an individual lets IRS notices go unanswered, one of the things that the agency can do is issue a bank levy. A bank levy is a method whereby the IRS seizes enough funds in your bank account to satisfy your unpaid taxes plus penalties and interests. The moment you receive the legal order for a bank levy, it’s in your best interest to immediately consult a tax lawyer who can enlighten you on the following matters:
Warnings about It
Like in any other levy they issue, the IRS will send you letters to remind you about your back taxes, and after a series of unanswered notices, they would inform you that they will be placing a levy on your bank account. They will also notify you and your bank when they finally seize your funds. So, you can’t really say that you had no idea on what was coming.
Getting Your Money Back
Usually, you can’t recover the funds seized by the IRS since it’s your debt to them, especially if you don’t have any excepting circumstance. With the help of your lawyer, you can negotiate a more reasonable arrangement with the agency within 3 weeks from the time your account was frozen.
Stopping the Bank Levy
To stop the bank levy, you need proof that freezing your account causes a serious financial difficulty, and you need to follow special process, too. Fortunately, your tax lawyer is there for guidance, so you can settle your debt more efficiently.