08 Jul 19 Audra Walter
In truth, reaching out for help is a very difficult thing when we’re talking about IRS debt. Nobody wants to talk about it. Many of our clients first approach us because they’re unable to open the mail. The question for a lot of folks is – who do I trust? Who will help me without judgment and understand the particulars my situation?
We hear our clients worry about how their past tax burden would be viewed by close friends or family members. Our desire to be accepted and revered by the people in our social environment is one of the most powerful forces in our lives. It is something which animates almost everything we do. We shouldn’t be surprised that this force also plays a role when it comes to resolving IRS tax debt.
The good news, though, is that there’s no reason why this type of debt has to bring shame on you or damage your reputation. As we know all-too-well here at Boxelder Consulting, honest, hardworking people fall into trouble with federal tax debt all the time. There can be so many reasons as to why a given person falls into this type of problem.
In this post, we will answer the question of whether the IRS can issue a levy against your bank account to satisfy your past tax burden. This is a big question which comes up often throughout the course of our practice – and completely understandable. This is the one that will keep you up at night.
If you’ve run into this kind of problem, you’ll probably wonder what sort of actions the IRS can take against you. Even as we answer this question, you have to remember that the first step toward resolving your situation is to contact a qualified professional. Trying to resolve your tax problem by yourself is a very daunting task. Hiring a qualified tax professional for assistance is beneficial in almost all cases. Get in touch with a professional at Boxelder Consulting today at 303-317-6111 and we can help you navigate through the process. We believe in second chances. Start your comeback story today.
Can the IRS Issue a Levy Against My Bank Account?
The short answer to this question is “yes.” The IRS does have the ability to issue a levy against your bank account. A “bank levy,” as this kind of levy is commonly called, occurs when the IRS puts a hold on or “freezes” your bank account in order to satisfy your back tax debt. A bank levy can be a particularly nasty form of levy. After the IRS issues the levy, you only have a total of 21 days to resolve this issue before the IRS seizes the funds in your account. And, if the funds available at that time aren’t sufficient to cover the entire debt, the IRS can keep seizing funds from your bank account in the future as soon as new funds become available. This isn’t a pretty situation. Sometimes the first phone call we receive from our client is when the small business payroll account was drained or their debit card was declined at the grocery store.
Fortunately, the IRS has to complete a few steps prior to issuing the levy, so this won’t come out of the blue. This gives you time to address the matter and avoid having the levy placed on your bank account in the first place.
What Procedural Hoops Does the IRS Have to Jump Through?
Before issuing the levy, the IRS will first send you a notice which indicates that you do in fact owe a balance. This notice is called a “Notice and Demand for Payment.” This makes perfect sense. Before the IRS takes steps to collect a debt, they want to first notify you that such a debt exists to begin with. Many people are simply unaware that they owe federal tax debt. The first communication from the IRS simply lets taxpayers know about their balance.
Next, if you don’t satisfy or dispute the balance, the IRS will issue something known as a “Notice of Intent to Levy.” This notice lets you know that the IRS will attempt to seize your property to satisfy the balance if you don’t take immediate action to resolve it. If you fail to take action within 30 days, then the IRS has the ability to move forward with the levy.
The IRS does not need to receive pre-approval from a judge or a court order in order to move forward. The IRS can simply go forward with a levy if you fail to respond. If you don’t respond within that 30 day period, you may find yourself stuck with a bank levy. And this is never a position you want to be in.
Reach Out to a Professional at Boxelder Consulting Today
Even though this news can seem paralyzing and overwhelming, you can take action to prevent or reverse a bank account levy. Yes, the IRS does have the ability to seize funds directly from your bank account. But, as mentioned, the IRS will make an effort to contact you beforehand and will give you a chance to resolve it prior to issuing a bank levy. What’s more, you actually have many different options to choose from when it comes to dealing with your back tax debt. Fortunately, you can resolve your federal tax debt even if you aren’t sitting on a huge lump sum. You can establish a payment plan with the IRS, or offer a sum lower than the full face value of your debt. You have a variety of choices; the professionals at Boxelder Consulting can help you make the right decision.
Whatever avenue you select to resolve your case, the biggest hurdle is always making the initial call. We know this from first-hand experience. We completely understand how tough it can be to confront this type of problem. That’s why partnering with a firm like ours can be so beneficial. We understand all of the emotional hurdles and difficulties involved. We are real people who have been through our own battles with the government. We’ve successfully resolved tons of cases and helped clients get back on track with their financial lives. If you have IRS tax debt, don’t hesitate to reach out. Give us a call at 303-317-6111 today to get started. We believe in second chances.