It is important to understand that bank levy just does not happen overnight. If you ignore IRS attempts to contact you regarding delinquent taxes, the IRS will start what they call Enforced Collection.
It is simply their way of getting your attention to make payment arrangements. An IRS bank levy is not the first method of enforced collection, but it is one of the most feared and certainly the most effective. The bank levy will only be used after three things happen:
- The IRS sends you an official demand for payment of delinquent taxes,
- You either refuse to pay this tax or do not respond to IRS communication attempts,
- The IRS sends you another official demand (final notice) at least 30 days before issuing a levy.
When you receive this final notice, it is essential to contact a tax resolution professional to map out the best course of action to put a stop to the levy.
It may be possible to negotiate with the IRS in advance of this enforced collection action, since the IRS bank levy is a “one time” levy of funds that are in the account at the time that the bank receives the levy notice. That is, if you had $3,000 in the bank on the date bank received levy notice; these $3,000 will be frozen. However, if a deposit to your bank account is made 2-3 days later, it is not subject to bank levy and will be available to you. But be aware that IRS can issue as many bank levies as they deem necessary to satisfy your debt.
The bank is instructed to hold or a freeze funds for 21 days before they send the funds to the IRS. Do not request your bankers to release funds, they are not authorized to do so. The only authority to release bank levy is the IRS. The bank levy can be released during 21-days holding period – but only under certain circumstances, such as showing imminent financial hardship due to that levy being in place. Otherwise, the levy will only be released after you pay your taxes or subsequently go back and dispute the tax bill.
Please remember…, this 21-day period allows a tax resolution professional time to negotiate with and encourage the IRS to release the funds from levy. During the negotiations I will supply the IRS with the information they require. Once I have negotiated the release, the IRS will forward a Release of Levy to your bank. I can then work on resolution of your delinquent tax issues, there are many options. Do not procrastinate…! contact www.blancamaldonado to schedule an appointment.