An IRS levy is different than a lien. A lien is a legal claim placed on your property and on your credit report. A levy is when the IRS actually seizes your property or your funds directly from your bank account, savings account, or other financial accounts where your money is held. The IRS can also issue these levies multiple times in order to satisfy your tax debt. Once the IRS issues a levy, the financial institution is required to hold the funds for 21 days. This is intended to give the taxpayer additional time to enter into an agreement with the IRS to pay the amount due or to prove financial hardship. There are some options to take to negotiate an IRS Levy Release to have your funds stay in your accounts:
- Enter into an Installment Agreement.
- Apply for and be approved for Currently Not Collectable status.
- Have an Offer in Compromised filed and approved.
- Pay the tax debt in full.
If no agreement or payments are made, the bank releases the funds to the IRS, which often cleans you out of the hard-earned money you needed to pay your bills and other expenses. Getting a levy released is a complex process, but one that Justice Tax, LLC has extensive experience in assisting with. We have helped millions of taxpayers get into a resolution with the IRS. Give us a call at 888-545-6007 for a no-cost, no-obligation consultation to speak with one of our Senior Tax Consultants about your tax concern and discuss what options are available to you.