When the IRS gets serious about collecting a tax debt—
They typically go through a series of steps before your assets like bank accounts or physical property are seized.
These steps include:
- Finding you liable for a tax debt
- Notifying you of the debt amount
- Sending a letter to you informing you of the IRS’ intent to levy (if you do not respond or pay the debt)
- Waiting 21 days before sending the order to your bank to have your funds locked.
When an IRS bank levy happens, it’s common to feel hopeless or distraught. IRS bank levies will stay in place until action is taken, which means access to your funds will be completely suspended until the levy is lifted by the IRS. And so, if you rely on your bank account for everyday expenses, an IRS bank levy is a serious inconvenience.
If your bank account is in danger of being frozen because of an IRS levy, it’s important to know what you need to do to stop the levy and maintain access to your funds.
Know that this problem can be solved, and these are the actions you can take to stop an IRS bank levy.
| Important: Not all tax situations are the same, and IRS bank levies can be part of a much bigger, more complicated overall financial picture. This is why it can help to discuss your tax problem with a qualified professional who knows how the IRS works and who can help guide you toward 100% resolution with the IRS.
Traxion Tax has been trusted by thousands to help regain access to levied assets like bank accounts. Learn more about how we can help you by calling (303) 376-9797. |
Option #1: Consult with Traxion Tax to Resolve Your Debt
No matter where you are on your journey to resolve your back taxes, Traxion Tax can be a resource for you.
Stopping bank levies, wage garnishments, or property liens are what we do best, and your initial consultation with us is always 100% free.
Option #2: Pay the Debt in Full
After all is said and done, the IRS really only wants one thing from you: the money they believe you owe them.
Therefore, the fastest and easiest way to stop the IRS’ bank levy against you is to pay the amount you owe, in full, as quickly as possible.
Option #3: Arrange to Pay Over Time
If you cannot pay the entire amount due immediately, but you can pay it down over time, then you might want to arrange for a payment plan. This is similar to making installment payments on a loan, and the amount you owe is not reduced.
Entering into a payment plan will often cease collection efforts, which would include lifting an existing bank levy or stopping it from happening entirely.
Option #4: Submit an Offer in Compromise
An Offer in Compromise (or OIC) is essentially a request to settle a tax debt, in full, for an amount lower than what the IRS states you owe.
Offers in Compromise are difficult to get accepted, and the IRS will often decline them unless they have solid evidence that you cannot pay the amount you owe.
| Remember: While it is possible to submit an Offer in Compromise on your own, you have a much higher chance of being successful when you work with a tax resolution expert to guide you through the process.
Traxion Tax can help you draft and submit a strong OIC that may result in a much lower overall tax payment. Visit www.TraxionTax.com to learn more. |
Option #5: Appeal the Bank Levy
If you believe the bank levy was ordered in error, or if you believe the IRS didn’t follow the correct procedure when filing the levy, there is the option to appeal the bank levy by working through the IRS’ Collections Appeal Program (CAP).
While it is possible for some IRS bank levies to be lifted on appeal, this is very rare, and without professional assistance or outstanding documentation, chances of success are slim.
Option #6: Prove Financial Hardship
If you can prove to the IRS that the bank levy would cause you significant financial hardship, you can attempt to prove your case in an effort to temporarily suspend the levy.
Remember that this will not eliminate the debt you owe. If successful, proving a financial hardship will only prolong the collections timeline; further collections actions will likely be taken in the future.
Proving financial hardship will require extensive documentation and approval is never guaranteed.
Conclusion
Learn more about what your best options are by scheduling your consultation right now. The longer you wait, the more likely your situation is going to get worse.
Don’t roll the dice with your financial future by going it alone. Call (303) 376-9797 now or visit www.TraxionTax.com.