The IRS has many tools at its disposal to take your money and leave you penniless. The bank levy is a common tool employed by the IRS. If you ignore IRS notices regarding your back taxes, the bank and wage levy will happen. You won’t realize it until your checks are returned for insufficient funds and all of your money on deposit is frozen. Don’t let this happen to you. The Scammahorn Law Firm will file appeals where appropriate and stop the IRS from levying your bank accounts, wages, and property. If the IRS has already issued a levy against your bank account or wages, the Scammahorn Law Firm will work with the IRS to remove the levies and resolve your tax problems.
Important Facts about IRS Bank Levies
A levy is different from a lien. In a federal tax lien, the IRS files the lien to protect its claim against your property in the event you were to attempt to transfer or sell the property. A lien in and of itself does not result in the seizure of assets. A levy is the seizure of your assets. The IRS can levy your assets even prior to filing a federal tax lien. They can seize your property outright which can include your real estate, bank accounts and wages in order to satisfy the tax debt.
Final Notice of Intent to Levy. Before the IRS levies your property, they are required by law to issue a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. The Final Notice provides you thirty (30) days to file an appeal to prevent the levy and have a hearing on the matter. Never ignore this notice. You should contact a qualified tax attorney prior to the thirty day deadline to discuss your options and legal strategies. You should further note that the IRS is only required to issue the Final Notice to your last known address. Thus, in situations where a taxpayer has moved since he or she filed their last tax return, the notice will be issued to the address listed on the tax return leaving a taxpayer unaware that a levy is imminent.
Certain property can be excluded from a levy. Under the Internal Revenue Code, many different types of property cannot be levied. These include, for example, clothing, school books, furniture, personal effects and tools of the trade, up to certain amounts. Certain annuity and pensions payments, unemployment and disability benefits, and workers’ compensation benefits may also be excluded. In the case of a wage levy, a portion of wages, salary and other income are exempt from the levy. If you are self-employed earning 1099 income, none of the income is exempt. In the case of a bank levy, the bank is to wait 21 days before releasing your money to the IRS, in order to give you time to contact an attorney and learn about your options.
It is possible to avoid a levy. If you agree that you owe the tax debt, working out a payment plan through an installment agreement, or negotiating an offer in compromise to settle the tax debt, will avoid a levy. If you dispute the tax bill or the amount owed, talk to an experienced IRS tax attorney about your next steps.
It is possible to get a levy released. There are many different ways to get a levy released once it has been imposed. A levy can be released when the tax bill is paid or if the collection period has ended, or if the levy was issued in error. If you can argue that ending the levy will help you pay your taxes or is necessary for an installment agreement, or that the levy will cause economic hardship, you may be able to get the levy ended as well. Also, release from the levy is possible when the value of the property levied is greater than the amount owed, and the IRS can collect in some other way. You have rights to request a release and appeal a denial. If the levy has already taken place, you can file a claim for the return of your property and appeal that denial as well, if necessary.
Call Our Bank Levy Relief Lawyers in Dallas & Tyler, TX For Immediate Assistance
Contact the Scammahorn Law Firm today to put an end to the relentless collection activities of the Internal Revenue Service and resolve your IRS problems. We serve individuals and businesses throughout Texas, including Tyler, Nacogdoches, Marshall, Longview, Palestine, Dallas, Fort Worth, Abilene, Odessa, Midland, San Antonio and Plano. Contact the Scammahorn Law Firm today at 903-595-1000.