CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Faced with a Bank Levy from the IRS? Here’s What to Do!

The IRS uses bank levies as a tool to collect tax payments. If you owe tax money and you are unable to or choose not to pay it, the IRS has the power to take it directly from your bank account. Having a bank levy is something that can leave you feeling powerless and in a position where day-to-day living is nearly impossible, especially if your financial situation is already tenuous.

You will receive a letter notifying you of the upcoming levy from the bank. Receiving the letter is a warning and should cause you to take action and determine what you can do to prevent the levy. If you wait and the levy occurs, you will have only 21 days to resolve the matter before the bank seizes all of the money in the account. As unpleasant as it might be, you need to deal with the situation as soon as possible and do all you can to prevent the government from leaving you in a desperate situation.

What Can You Do Once You Receive Notice of a Bank Levy?

The first thing you need to do when the levy notice arrives is contact an attorney who understands bank levies and tax payments. He or she will help you make the best decision, despite your limited options.

What are your options?

File a Hardship Plan Request

You can send a letter to the IRS proving a bank levy would prevent you from meeting standard basic needs. If you have only enough money to meet the basic standard of living, the IRS might give you some leeway.

Arrange a Payment Plan

Negotiating a payment plan allows you to pay you tax debt gradually. You will need to make monthly payments and if you do not meet these monthly obligations, you can expect the IRS to be harsh. However, setting up an Installment Agreement can stop them from freezing your account.

Negotiate a Settlement

Sometimes the IRS is willing to work with you to pay less than you owe, if you are willing to make a lump sum payment. This is not an option for everyone because most people who were unable to meet their tax obligations do not have enough available to make a large enough lump sum payment to the IRS. However, if you work with an attorney familiar with IRS practices, you might be able to create an arrangement that satisfies everyone involved.

Your final option, of course, is to let the bank seize the account and deal with the consequences. Obviously, this is not the ideal solution, but it has potential to satisfy your tax obligation, depending on the amount in the account.

Have you received a notice of bank levy from the IRS? Do you expect the IRS to take action because of back taxes you owe? You need the support and guidance of someone who understands. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your tax debts and determine your next step.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions