irs levied bank account
An IRS levied bank account is a penalty that the government demands from you for an unpaid debt. An IRS levy is issued against your personal bank account, which includes investments, retirement plans, dividends, insurance, and other things. The IRS will secretly access your bank accounts, scrutinize them, and then withdraw the funds from your account to settle your tax obligations. If you want to avoid having an IRS levy, you need to follow certain tips. Some of these tips can help you get out of an IRS levy as quickly as possible. Do not try to negotiate with the IRS before they have issued a bank levy. Negotiation is a good strategy if you are on time with all of your taxes and just need a way to pay the debt at one time. However, if you do show signs of trying to work with the IRS before they have levied your bank account you can put yourself at a disadvantage. You can end up having a much smaller tax liability and a substantially higher tax bill by making these types of mistakes.
what not to do when the irs levied your bank account
Do not open new financial accounts. Opening new financial accounts can open you up to another type of bank levy. It can also affect you in other ways as well. You can also lose eligibility for certain deductions that you may have otherwise qualified for. The IRS may also refuse to let you sell some assets to satisfy your tax liability if you have already closed old financial accounts. Do not pay any federal tax lien on or after the date of your bank levy. You will receive notification from the IRS that you owe a specific tax liability to them. You may have the option to settle this liability before they send you a notice that states that you have to repay the money. If you do not settle your tax liability you could face an even larger tax bill from the IRS. If you do not settle the amount of money that is due the IRS can issue a federal tax lien against your property.
Do not ignore a notice from the IRS. You will probably receive one notice that is meant to let you know that you have to repay a tax levy within a specific period of time or face a larger tax liability. In the event that the IRS issues a tax levy you have to repay it or face dire consequences. The IRS does not like to deal with people who do not pay their taxes on time and they issue a tax levy to scare you into paying. Contact a tax specialist immediately to discuss what options are available to you. The IRS is very knowledgeable and can assist you with any issues that you may have regarding a tax levy. They may even negotiate an extension with you on the amount that you have to pay or they may work out a payment plan with you that has less impact on your monthly income. Do not ignore a notice from the IRS because you do not owe the money. Pay it as soon as you can and keep your property secure by requesting an extension on the due date or discuss other options with them about how to resolve the tax issue.