The IRS levy is one of several tools called on to resolve outstanding tax debts. This dreaded action can take many forms, but the IRS often turns to personal bank accounts. This can cause a lot of hardship for your and your loved ones, but that doesn’t mean you have to sit passively and let the IRS go after your assets.
Are you worried about your bank account as you deal with IRS debt? Keep reading to learn whether your assets could be at risk — and which strategies might get the IRS off your back.
Bank Levy Basics
If the IRS issues a levy, it is authorized to seize money from your personal bank account to satisfy tax debts. This is usually a last resort, but it’s a common source of funding for the most aggressive collection efforts.
Prior to seizing funds from your bank account, the IRS must provide 21 days of notice. This waiting period is meant to help you contact the IRS and make alternative arrangements. Still, your assets could be frozen, potentially causing immediate financial harm.
How to Stop an IRS Bank Levy
If frozen funds don’t represent an immediate hardship, take full advantage of the aforementioned waiting period. This is the perfect time to get in touch with an enrolled agent, who can dispute the levy on your behalf. This professional can help you acquire evidence that your account is being levied in error.
Are you worried about the possibility of an IRS levy on your personal bank account? It’s never too soon to safeguard your assets. Our team at the Highland Tax Group can help you take a proactive approach to reduce the risk of collection activity. Contact us today to learn more.