What is a Bank Levy?

When you owe back taxes to either the IRS or State tax agencies they can levy your bank account. Yep, that is right, you heard me correctly! They can withdraw all your funds to pay back taxes. This is one of the reasons WHY you don’t ignore those pesky collection notices from the IRS or a state tax agency. 

So, what do you do if you receive a notice of bank levy? With the IRS you usually have 21 days to contact the IRS and set up a resolution. This means setting up a payment plan in most cases. If you do not make contact within the 21 day time frame then the funds are set off to the IRS and applied to any back taxes you owe them. Good luck trying to get them to give you the money back!

Repeat and Remember! It is VERY important to open your collection notices. The IRS and State will NOT call you. So be cautious if you do receive phone calls demanding payment. Those are fake and are scammers trying to steal from you. 

If you happen to live in a state that has state income tax and they have bank levied you. You need to call them right away! Some states will reverse the bank levy if you set up a payment plan. Again time is a key factor in them doing this. Most states only offer payment plans to release a bank levy. Check with your state tax department and make sure you open your mail if you do owe back state taxes. 

FYI: STATES are more aggressive to wage garnish you, bank levy you, and suspend driver privileges (depending on what state you reside in).

Need help with owing back taxes? Give us a call so we can help you understand what options you have available to you with out breaking the bank!

Yes, I want help!