How Can I Remove A Bank Levy?
- August 13, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Resolution
If you owe the IRS money, you run the risk of the IRS placing a levy on your bank account. A bank levy can cause financial hardships in your life and make paying essential bills more difficult. However, there are options for avoiding or removing an IRS bank levy. Read on to understand how to go about requesting the removal of a bank levy. Hint: it’s helpful to work with a tax resolution professional to remove a tax levy. The experts at Platinum Tax Defenders have years of experience eliminating bank levies for their clients.
What is an IRS Bank Levy?
When the IRS places a bank levy on your account, they freeze all of your assets. Also, the IRS will drain your bank account to recoup the money you owe in back taxes. Once the IRS places a levy on your account, it’s hard to remove it. You only have three weeks before your money gets taken and handed over to the IRS.
The levy will remain on your bank account until you pay back taxes in full. However, before the IRS levies your account, they must notify you within 30 days. This short time frame provides you with an opportunity to avoid a bank levy and the coinciding financial stress.
How can I avoid an IRS Bank Levy?
When you receive notification from the IRS, do not disregard this notification. The IRS must notify you in writing of its intent to levy your assets. When you receive this letter, it’s your only opportunity to discover what your payment options are. After you receive the message, you can request a hearing at your local IRS office. During the trial, you can argue why the IRS should not levy your bank account. You can also request an additional 30 days to figure out a payoff arrangement to settle back taxes. However, dealing with the IRS can be intimidating. When attempting to negotiate with the IRS, you should consult a tax resolution expert. A tax relief professional will know which tax resolution options are right for you. Additionally, a tax relief expert can represent you and speak on your behalf during an IRS hearing.
How can I remove an IRS bank levy?
Once the IRS places a levy on your bank account, it’s difficult to remove. You can write the IRS a letter that explains why the levy creates financial hardship for you and your household. The message should also contain written proof of your financial difficulties, like not having money to pay rent.
A tax relief expert can help you write this letter and ask for the removal of the levy. It’s possible to ask the IRS to consider other arrangements that would allow you to pay your back taxes.
Prove to the IRS that the Levy Will Cause Financial Hardship
The IRS can sometimes be sympathetic toward taxpayers who can’t pay back taxes. To demonstrate real hardship, you must prove that you can barely make ends meet. Some of the necessary expenses that the IRS will consider not to levy are:
– Paying mortgage or rent
– Medical costs
Some costs that the IRS does not recognize when placing a levy are credit card payments or student loan bills.
How can I release an IRS bank levy?
One of the ways to get the IRS to release a levy is to ask for an Installment Agreement. An Installment Agreement allows you to pay back taxes in affordable monthly payments. What you pay each month depends on your income and what assets you have that the IRS could liquidate.
The IRS will generally set up an arrangement so you can avoid defaulting on your back tax payment. As long as you make payments each month, you can prevent the IRS from placing a levy on your bank account. However, if you miss payments, the IRS can continue with its decision to levy your account.
Pay Back Taxes in One Lump Sum
Another way to get the IRS to release a levy is to pay back taxes in one lump sum. The IRS will usually ask for at least 80 percent of what you owe if you want to avoid a bank levy. However, if you can’t afford to pay back 80 percent of your debt, you can pay at least 60 or 70 percent. The IRS will accept this offer in many cases. However, when attempting to pay back taxes, it’s always advisable to consult a tax relief professional. You should make a lump sum offer within 30 days after receiving the IRS’ letter. If you’re hesitant to deal with the IRS on your own, consult a tax relief expert.
Hire a Tax Resolution Professional
Avoiding a bank levy or having one removed can be difficult if you do it alone. You will most likely have no idea about IRS tax codes for bank levies or what your rights are. Don’t risk a financial hardship or having all of your money drained from your account. A tax relief professional will know the IRS tax code and what options are best for you.
Get a Free Consultation from Platinum Tax Defenders
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.