Release of Bank Levies

 

Release of Tax Levy - A tax lien does not allow the IRS to take assets.  Instead, the IRS seizes assets through the issuance of a levy.  Typically levies are made on bank and similar accounts and / or are issued to the taxpayer’s employer as a wage levy. Depending upon the facts, generally the IRS can levy a taxpayer’s car, retirement accounts (including IRAs and vested 401(k) plan benefits), up to 15% of Social Security payments, and in certain circumstances, even the taxpayer’s personal residence. 

 

Note that for most taxpayers, an IRS levy of their personal automobile or home happens very infrequently.  The most common targets of an IRS levy are bank accounts and wages.

 

The IRS is not required to take you to court before seizing assets from you such as your car, bank account, or paycheck.  Fortunately, if you deal appropriately with the IRS, this doesn’t have to happen to you. 

 

Before it levies, generally the IRS must provide the taxpayer with a Notice of Intent to Levy.  This is done by certified mail to the taxpayer’s last known address or the notice must be left at the taxpayer’s home or handed to them.  Except in the unusual situation involving a “jeopardy levy”, the notice of intent to levy generally must be given at least 30 days before any seizure is made. 

 

If you receive a Notice of Intent to Levy, we may be able to help you.  However, in successfully defending against a levy, it is critically important to begin taking action immediately.  There are typically actions that can be taken to prevent a levy so call us as soon as possible to preserve these alternatives.

 

It is not easy getting anything back from the IRS once they have seized it.  This is why it is so important to take action as soon as possible.