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IRS Levies Bank Accounts – Release of Wage
When the IRS levies bank accounts, it can leave you financially devastated if you do not take immediate action. Whether you received a Notice of Intent to Levy or you’re currently under a wage levy or bank levy, James M. Cha, CPA & Company can protect you.
A levy occurs when the IRS collects your back taxes through “seizing” your real or personal property. Typically, levies are made on financial accounts held for you by others, such as a bank, a stockbroker, or an employer. Levies are placed on bank accounts, social security benefits, and retirement income.
Why the IRS Levies Bank Accounts
When we think about the cause behind the fear that is deep-rooted in the American psyche regarding the IRS, we like to think about intimidation tactics, notices, liens, and garnishments. But the real horror begins when the IRS levies bank accounts.
A bank account levy occurs when a third party instructs a bank to withdraw money from an account without the account holder’s permission. Then they will apply these funds towards paying their own debts that the account holder has accrued.
A bank levy is not necessarily a one-time event. A creditor can request a bank levy as many times as needed until the debt has been satisfied. In addition, most banks charge a small maintenance fee in order to help during a levy situation. In most cases, a debtor is allowed to dispute the levy.
Not all creditors have the right to levy a bank account. In order to be able to put levies on others’ bank accounts, one needs to win a money judgment case in court. However, the IRS has the supreme authority to file a levy on a bank account without due process. That means, the IRS levies bank accounts prior to going to the courts.
The vast majority of levy notices are issued to tax debtors’ financial institutions and employers. When the levy is on the bank account, banks have to submit your funds to the IRS or state, and you can only get them back when these taxing authorities allow them to. In case of a wage garnishment, part of your wages will be sent to the IRS or state each pay period.
Levies can also occur by seizures of vehicles, business assets, and miscellaneous property to satisfy the back taxes.
In addition to any properties, a levy can attach to any future federal tax refunds or state income tax refunds that you are to receive, in order to satisfy the federal tax liability.
Tax professionals at James M. Cha, CPA & Company have obtained the release of numerous wage and bank levies for their clients, resolving our clients’ tax problems immediately and permanently. It is important to note that these tax problems don’t go away on their own, and you must take action by seeking assistance from certified tax professionals.
It’s time for you to stop living in fear.
Tell us your tax burdens and take the first step towards true freedom. Schedule your free confidential consultation today.