When you owe the IRS money in back taxes, the federal agency can use a variety of ways to obtain the debt, including assessing a bank levy. This means the IRS can place a freeze on your accounts and seize the money until your tax debt us satisfied. To try to have the bank levy removed and to learn more about your options, you can work with a tax attorney. Learn more about how a tax attorney can help you negotiate with the IRS to try to have a bank levy removed.
If you owe the IRS money in back taxes, the federal agency may take action in several different ways to recoup the debt, including placing a bank levy on your accounts. This means the IRS will place a freeze on your bank account to seize the funds. This levy may stay on your account until your tax debt is paid in full.
Having a a bank levy placed on your accounts can put you in a hard spot, financially. To try to get a levy released, it is important to hire a tax attorney to represent you in your negotiations with the IRS. Some options an attorney can help you explore include:
-Collection Due Process Hearing: You can request a Collection Due Process Hearing with the IRS before the bank levy is assessed . With the help of an attorney, you can try to persuade the federal agency to not apply the levy by presenting your case. The IRS may not apply the levy if you paid off the debt or if there wasn’t an error.
-Paying the Tax Debt in Full: Completely paying off your tax debt can get the agency to immediately stop the levy.
-Set Up a Payment Plan: Having your attorney help you set set up a payment plan with the IRS can also get them to remove the levy. This is one of the most common ways to avoid a bank levy.
-Show Financial Hardship: With the help of your attorney, you can get back taxes labeled “uncollectible” if you can prove that repaying the debt would be unfair due to your current financial situation.
-Receive an Offer in Compromise (OIC): Your attorney may be able to help you enter into an Offer in Compromise with the IRS, which let you settle your tax debt for less than you owe.
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