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Bank Levy Release
Resolve Your Bank Levy Fast with Priority Tax Relief
A bank levy can be a severe financial hardship, causing stress and uncertainty for many taxpayers. Fortunately, there are ways to release a bank levy and prevent it from happening in the future. This article will explore what a bank levy is, how to get it released, how to prevent it, and how Priority Tax Relief can assist.
What is a Bank Levy?
A bank levy is a legal action taken by the IRS to seize funds directly from a taxpayer’s bank account to satisfy an outstanding tax debt. When a levy is issued, the bank is required to hold the funds for 21 days before remitting them to the IRS. This period gives the taxpayer time to resolve the issue or arrange for the release of the levy.
How to Get a Bank Levy Released
Releasing a bank levy involves demonstrating to the IRS that the levy should be lifted. Here are some common ways to achieve a bank levy release:
Pay the Tax Debt: The most straightforward way to release a bank levy is to pay the tax debt in full. Once the debt is paid, the IRS will release the levy.
Enter into an Installment Agreement: Setting up a payment plan with the IRS can result in the release of the levy. An installment agreement shows the IRS that you are committed to paying off your debt over time.
Submit an Offer in Compromise: If you cannot pay the full amount, you may qualify for an Offer in Compromise, where the IRS agrees to settle your tax debt for less than the full amount owed. Acceptance of an Offer in Compromise can lead to the release of the levy.
Prove Financial Hardship: If the levy causes significant financial hardship, you can request a levy release by demonstrating your inability to meet basic living expenses. The IRS may release the levy if it deems the levy to be causing undue hardship.
Request a Collection Due Process Hearing: If you disagree with the levy, you can request a Collection Due Process (CDP) hearing to challenge the levy and discuss alternative resolutions with the IRS.
Preventing a Bank Levy
Preventing a bank levy is the best way to avoid the stress and financial strain it can cause. Here are some strategies to help prevent a bank levy:
Stay Compliant with Tax Filings: Ensure that all tax returns are filed on time, even if you cannot pay the full amount owed. Filing on time helps avoid additional penalties and keeps you in good standing with the IRS.
Pay Taxes on Time: Pay your taxes by the due date to avoid interest and penalties. If you cannot pay in full, contact the IRS to discuss payment options.
Set Up a Payment Plan: If you owe taxes and cannot pay in full, set up an installment agreement with the IRS. This shows your commitment to resolving your tax debt and can prevent collection actions like a bank levy.
Respond to IRS Notices Promptly: If you receive a notice from the IRS, respond promptly to address any issues and avoid escalation. Ignoring IRS notices can lead to more severe actions, including levies.
Seek Professional Help: Consult a tax professional or tax relief service to help manage your tax obligations and avoid collection actions.
How Priority Tax Relief Can Help With Bank Levy?
Priority Tax Relief is a tax resolution service that assists taxpayers in resolving complex tax issues, including bank levies. Here’s how we can help:
- Expert Consultation: We provide expert consultation to assess your situation and determine the best strategy for releasing the bank levy.
- Negotiation with the IRS: Priority Tax Relief can negotiate with the IRS on your behalf to set up payment plans, submit Offers in Compromise, or request a levy release due to financial hardship.
- Documentation and Filing: We assist in preparing and filing the necessary forms and documentation to request a levy release or appeal a levy.
- Preventative Strategies: We offer guidance on how to prevent future tax issues through proper tax planning and compliance.
Contact Priority Tax Relief at 888-708-2872 to learn more about Bank Levy Release and schedule a consultation.
Cancellation: Any cancellation of services must be made in writing and delivered to 400 S. Jefferson, Suite 100, Spokane, WA 99204 within three business days of the date of this agreement. If the client cancels services during this time, Company, reserves the right in its sole discretion to convert the agreed fee payment structure to an hourly one by which Client agrees to pay Company an hourly rate of five hundred fifty dollars an hour, entitling Client to a refund of up to fifty percent of all monies paid beyond the ten day money back guarantee in cases where no aggressive collection action is in place.
Frequently Asked Questions: Bank Levy Release
What is a bank levy?
A bank levy is a legal action taken by the IRS to seize funds directly from a taxpayer’s bank account to satisfy an outstanding tax debt. When a levy is issued, the bank is required to hold the funds for 21 days before remitting them to the IRS, giving the taxpayer time to resolve the issue or arrange for the release of the levy.
How do I get a bank levy released?
You can get a bank levy released by:
- Paying the tax debt in full.
- Entering into an installment agreement with the IRS.
- Submitting an Offer in Compromise to settle the debt for less than the full amount owed.
- Proving that the levy is causing significant financial hardship.
- Requesting a Collection Due Process (CDP) hearing to challenge the levy.
What is an installment agreement?
An installment agreement is a payment plan that allows you to pay off your tax debt over time through manageable monthly payments. Setting up an installment agreement with the IRS can result in the release of a bank levy.
What is an Offer in Compromise (OIC)?
An Offer in Compromise is a program that allows taxpayers to settle their tax debt for less than the full amount owed if they can demonstrate that paying the full amount would cause financial hardship. Acceptance of an OIC can lead to the release of a bank levy.
What constitutes financial hardship for a levy release?
Financial hardship for a levy release means that the levy is preventing you from meeting basic living expenses such as housing, utilities, food, and medical care. You must provide evidence to the IRS showing that the levy is causing undue financial strain.
How can Priority Tax Relief help with a bank levy release?
Priority Tax Relief can assist by:
- Providing expert consultation to assess your situation and determine the best strategy for releasing the bank levy.
- Negotiating with the IRS on your behalf to set up payment plans, submit Offers in Compromise, or request a levy release due to financial hardship.
- Preparing and filing the necessary forms and documentation to request a levy release or appeal a levy.
- Offering guidance on how to prevent future tax issues through proper tax planning and compliance.
What is a Collection Due Process (CDP) hearing?
A Collection Due Process (CDP) hearing is a formal process where you can appeal an IRS levy or other collection actions. During the hearing, you can present your case and discuss alternative resolutions with an IRS officer.
How can I prevent a bank levy in the future?
To prevent a bank levy in the future, you should:
- Stay compliant with tax filings and ensure all returns are filed on time.
- Pay taxes by the due date or set up a payment plan if you cannot pay in full.
- Respond promptly to IRS notices to address any issues before they escalate.
- Consult a tax professional or tax relief service to help manage your tax obligations and avoid collection actions.