IRS Bank Levy: How to Stop an IRS Bank Levy, IRS Liens, & IRS Tax Penalties
IRS Bank Levy- Suddenly Penniless! An IRS Bank Levy will strike without warning. Your money is here today, gone tomorrow. But what if you live paycheck to paycheck? Imagine the chaos if the IRS suddenly takes $2,000 out of your bank account with an IRS Bank Levy? Suddenly the mortgage, car, and credit payments are due and you don't have a penny to pay it with. This isn't the IRS's only weapons. An IRS Lien and IRS Tax Penalties do damage to your finances as well. Don't fret. There is a way to fight back against IRS Liens, IRS Tax Penalties, and IRS Bank Levies!
Bite the Bullet: The fastest and surest way to release the IRS Bank Levy is to pay the IRS what you owe. But what if you don't have the money? There's another way you can force the IRS to surrender your cash.
Getting Lucky: The IRS will release the IRS Bank Levy if they know it'll make you go without basic needs. Prove without a doubt that if they take the money you'll go without food, utilities, basic clothing, tools for work, or school supplies. But watch out, luxury costs like sports car or credit card payments don't count.
How to Fight IRS Liens & IRS Penalties: Roll up your sleeves and follow the 3 simple steps below:
- You need concrete proof that if they place a Bank Levy on your account you can't pay for your basic living expenses. Round up documents like your paychecks, groceries bills, and utility & rent payments. Your might qualify to have IRS Liens removed from your account if you prove the IRS Liens are preventing you from paying your tax debt.
- Be prepared to release a detailed financial statement (Usually on Form 433-A) This statement proves the information the IRS needs to determine if you can pay or not. This will be instrumental in removing IRS Liens or IRS Tax Penalties.
- Simply send a letter to the local office of the Taxpayer Advocate. Be specific and detailed and provide plenty of examples. But be careful, if you make a mistake you risk the IRS levy being enforced and losing your cash.
The Clock is Ticking: You're running out of time! When the IRS intends to Levy your bank account they only give you 21 days to appeal it. After that time has passed, all your money will be gone and there will be practically nothing you can do about it. Even I can't help you at that point.
Be on the Lookout: If you know you owe the IRS, look out for a notice entitled "Final Notice of Intent to Levy". Like it says, that will be your last chance to act before the Levy is placed on you. So act fast and prevent this worst-case scenario and worst-case actions (like IRS Tax Penalties or IRS Liens) from happening to you.
