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Stopping an IRS Bank Levy (cont.)
You can stop the levy by submitting Form 12153 and requesting a Collection Due Process Hearing. When you request a Collection Due
Process Hearing, you have 30 days from the time you got the intent to levy letter to negotiate with the IRS for an alternate method
to pay on your debt - Installment agreement, Offer in Compromise, or Penalty Abatement for your IRS tax debt. During the period of
negotiation, the IRS will temporarily suspend any levy activity. If your bank account is levied by the IRS, your bank will have to
pay to IRS whatever money is in your account on the date the levy is received by your bank.
You have 21 days to get the levy released. If you do not take action, you bank will send the money in your account to the IRS which will be used to clear your tax dues.
If your dues are still not cleared, the IRS can issue a new bank levy. When the IRS levies your bank account, the levy is only
for the particular day the levy is received by your bank. The bank is required to remove whatever amount is available in your
account that day up to the amount of the IRS's levy and send it to the IRS in 21 days. The levy does not affect any future deposits
made into your account unless the IRS issues another levy.
Once the IRS levies your bank account, wages or other assets, you must establish contact with the IRS to get the levy released.
If you want to levy to be released on the ground that it is causing you undue hardship, you must provide substantial and convincing
proof that the IRS levy is causing an undue hardship. If you own a business under IRS levy you may be able to get the IRS levy
released by showing an undue hardship to your employees.
You can also get the IRS to release the levy by entering into a formal resolution with the IRS – Offer in Compromise, Installment Agreement.
Once the resolution is in place, the IRS will release the levy. To be eligible for such formal resolution, you must be current on your current tax payments.
When the IRS levies your bank account, the levy is only for the particular day the levy is received by your bank. The bank is
required to remove whatever amount is available in your account that day up to the amount of the IRS levy and send it to the IRS
in 21 days unless notified otherwise by the IRS. The levy does not effect any future deposits made into your bank account unless the IRS issues another bank account levy.
If you are a loved one needs help in stopping an IRS bank levy, end your worries and
contact one of our ex-IRS agents.
Our services are available in all 50 states including Texas, California, New York, Alaska, Hawaii, and the District of Columbia.
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