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One enforcement tool that the IRS can use to collect overdue taxes is to seize the taxpayer’s bank account. Initially, the IRS will attempt to contact the taxpayer via phone calls, letters, and notices. If these collection attempts due not yield results, the IRS can file legal notice that it is prepared to enact collection activity. One of these methods is to issue a bank levy.
When the IRS decides to issue a bank levy, it notifies a bank that it is seizing a taxpayer’s account. The bank is then legally obligated to freeze the account and remit the funds to the IRS. If the IRS has imposed a levy on your account, it is vital that you act immediately as the bank will allow just 21 days to resolve your issue with the IRS before it forwards your funds.
At Heider Law, we can help you to negotiate a release of your funds from bank levy or help you to avoid one altogether.