IRS Levies 1.9 million taxpayers each and every year!!!
IRS only sends out tax levies after a series of 5 letters are sent to the taxpayer.
These are sent about 5 weeks apart.
1. CP 14 – This is the notice of balance due,
2.CP 501 – This is a Bill that you still owe tax,
3. CP503 – Important, Immediate Action Required
4. CP 504 Urgent Notice – We Intend to Levy on Certain Assets, Please Respond Now
5. CP90/CP297/ IRS Letter 1058 – Final Notice of Intent to Levy &Notice of Your Right to a Hearing
6.CP 91 CP298 -Final Notice Before Levy on your Social Security Benefits
The IRS uses Letter 1058 as a Notice of Intent to Levy to inform you they intend to take your property and assets. It is very similar in effect as other Notices CP 90 & CP 504. The IRS can seize practically anything you own after 30 days.
Hire true tax professionals who can get the job done.
Being former IRS Agents and Managers we know the process of getting a levy on a bank account released and removed quickly and for affordable fees.
We will not only get your Levy on your bank account released we will also settle your case.
You should also be aware that your money is not being sent to the Internal Revenue Service for 21 days. The money is frozen not permanently gone.
When you have received a levy on your bank account the money is actually frozen or held for 21 days. The Internal Revenue Service is giving you that three-week period to get a release of levy on your bank account.
You can continue to use your bank account during that 21 days.
So if you just received a Levy on a Bank Account do not be panicked or to worried, we can and get a release of the levy on your bank account within 24 hours of receiving your current financial statement along with documentation.
Call us at AZ Tax Agents and we will get started on removing your tax levy on your bank account immediately.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
We know the exact protocols to get an IRS bank levy released and removed as fast as possible for affordable pricing.
The Process of getting a Levy on a Bank Account released or removed.
Before the Internal Revenue Service will remove or release a Levy on a bank account they will need to review a current financial statement. That financial statement will need to be on form 433-F.
Once we have received your current financial statement along with all documentation to support it, we can usually get your levy on your bank account released or removed within 24 hours.
It is also important for you to understand that the Internal Revenue Service will make sure all your federal tax returns have been filed and up-to-date.
So whether you want to get your levy on your bank account release to remove by yourself or have a professional tax form engaged to do the work you should immediately start working on that financial statement to give to the IRS agent
THIS IRS NOTICE OF FEDERAL TAX LEVY ON YOUR BANK ACCOUNT WILL NOT GO AWAY BY ITSELF.
You have a 21-day window before the bank has to send the frozen monies to the IRS. During this period of time, we can secure enough information to get the IRS Bank Levy removed and put your money back in your hands.
This is your next step for immediate bank tax levy removal:
- Contact AZ Tax Agents, we have tax professionals, including former IRS agents to help you through the process;
- Make sure all your Federal Tax Returns are filed and up to date, IRS will not release these levies until all returns are filed, (we can help with this);
- AZ Tax Agents will contact the IRS with a power of attorney so you NEVER have to speak with the IRS on these back tax issues;
- Provide information necessary to prepare an IRS Form 433F – Financial Statement, with supporting documentation (we will help with this);
- We package the documentation, fax it to the IRS, and immediately request that they release the bank levy and close your case;
Don’t hesitate, each day you wait the IRS is closer to taking your money away from you and your family.
Call AZ Tax Agents today and we will work for you to remove the IRS Bank Levy.
Facts that you should know about an IRS Bank Levy
A Notice of Intent to Levy was sent to your last known address, the one that IRS had on file. By law the IRS is required to do this.
You had 30 days to respond to this notice. Many times taxpayers never received these IRS notices on back taxes.
As a result, IRS sent a Levy Notice out to a bank source the IRS has in their file. The IRS collection computer sends out all these notices.
Once the Federal Tax Levy hits your bank account, you have 21 days in which to take care of the problem. The bank puts a hold or a freeze on your account.
The IRS will expect you to contact them within that 21 day period. The only reason the IRS levy was sent was because there is an unresolved IRS issue that needs to be resolved.
IRS is going to want a current financial statement before they will release the Federal Tax Levy on your bank account. They will request a 433A or a 433F Information Collection Statement. The form must be filled out entirely and you will have to provide supporting documentation for some of the expenses.
Another important factor is to make sure all your tax returns are up to date.
IRS will not release the bank levy until all tax returns are filed. If you do not have your records, AZ Tax Agents can obtain the information to complete all necessary returns that the IRS is looking for within a couple of days.
We get full transcripts and income verification from the IRS to prepare your unfiled tax returns.
The IRS Bank Levy
Holding Period for a IRS Bank Levy
By Federal Law, a bank must wait 21 calendar days after a levy is served before sending payment. Then, on the next business day, it must turn over the taxpayer’s money.
The depositor(s) can waive this waiting period. The bank will not send money that is subject to attachment or execution under judicial process. “Bank” includes credit unions, savings and loan associations, trust companies, and others described in IRC 408(n) and Treas. Reg. §301.6332–3(b).
During the holding period, a levy might be released, or the amount owed could decrease.
If the bank receives no release, it must send the payment after the holding period.
No additional notice is required.
The Role of the Bank Liaison for the IRS Bank Levy
money is sent.
Assign a bank liaison in each territory to settle these issues quickly.
Sometimes ownership is not settled before the holding period ends. If this happens, ask the bank for more time.
Problems can exist for Multiple Signature Authority for a Bank Account for Levy purposes
A levy served to a bank attaches to funds in a bank account for which the taxpayer has an unrestricted right to withdraw funds (signature authority) – even if multiple persons have signature authority for that bank account.
As noted in Treasury Regulation 301.6332–1(c)(4) the unrestricted right to withdraw funds is an interest which is subject to levy.
A bank is served with a notice of levy for an unpaid tax liability due from the taxpayer in the amount of $2,000. The bank holds $2,000 in a checking account in the names of a taxpayer and a third party.
Although all of the deposits into the account were made by the third party, the taxpayer has an unrestricted right to withdraw the funds from the account. The bank may send the Service the entire account balance at the end of the 21-day holding period.
The bank is not liable to the third party for any amount, even if the third party proves that the funds in the account did not belong to the taxpayer, because the taxpayer’s un-restricted right to withdraw the funds is an interest which is subject to levy.
The third party may, however, seek the return of the funds from the United States by making an administrative wrongful levy claim under IRC 6343(b) or file a suit under IRC 7426(a)(1) should the administrative claim be denied.
A non-liable third party may claim ownership of funds in a bank account when multiple people hold signature authority for that bank account. Treat this dispute as a potential wrongful levy.
A wrongful levy is a levy that improperly attaches property belonging to a third party in which the taxpayer has no rights.
For bank levies, if additional time is needed beyond the 21 day hold period to determine ownership, request the bank hold the funds.
Provide the potentially wrongfully levied party a deadline date for providing substantiation and provide the bank with a specific extension date to forward the funds.
Amount that Must be Surrendered on the IRS Bank Levy
The bank must send the amount in the taxpayer’s accounts. A bank levy attaches to any property or rights to property that belongs to the taxpayer or on which there is a Federal tax lien unless it is exempt. See IRC 6331, Levy and Distraint, for legal authority to levy. However, it must send no more than the amount shown on the notice of levy.
By law, banks cannot immediately honor the IRS levy. See IRM 184.108.40.206, Holding Period, for guidance on the holding period after a bank levy.
The notice of levy only reaches the amount on deposit when the levy is received. Money deposited latter is not surrendered, including deposits during the holding period. Another levy must be served to reach this money
Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw.
Levy proceeds must not be reduced by any fee charged by the bank for processing the levy.
- Get a transcript of your complete tax history;
- File a power of attorney with IRS so you never have to speak with IRS;
- Secure a removal or release of the Federal Tax Levy;
- Close your case and settle your back tax problem.