Receiving notice a credit card or mortgage payment has been rejected because of insufficient funds is a scary experience. It calls attention to your financial struggles and reminds you that everything is not OK, financially speaking, even if you have been trying to ignore the problem.
Things are even scarier when you weren’t fully expecting a problem to occur with your account, but a levy on your account created insufficient funds. The control you thought you had over managing your money and your debt is suddenly gone.
Where Do Levies Come From?
Not all creditors are able to place levies on private bank accounts. The state or federal government has the authority to do so if you are delinquent on tax payments. Levies allow the government to legally seize your property (in this case, the money in your bank account) to satisfy your debt to them.
You might think sufficient warning would occur prior to a levy and court proceedings would be necessary. This isn’t always the case. The IRS has the authority to issue a levy without court proceedings, so even if you think things will turn out fine once you tell your side of the story, you might find your account levied with very little warning.
What the IRS must do is notify your bank in writing that your accounts are to be frozen and the money in them turned over to the IRS. You have no control over this and you will no longer have access to your bank accounts. The IRS also has the authority to gain access to 401K accounts, wages, and insurance payments under the seizure laws, and can place levies on your personal property, including your home and vehicles.
To learn more about levies and how they can affect your life, visit IRS.gov
What You Can Do about a Levy
Levies are serious business and you have limited options if you are facing a levy. If you owe back taxes and have not arranged a payment plan with the IRS, it is important you contact an attorney immediately. He or she can help you protect your assets, but you need to act fast. You are facing a financial emergency – levies and liens can have a severe impact on your current life and your future.
If you are frightened and need assistance with a tax debt, we can help. We’ll help you negotiate with the IRS to find a resolution to the problem that allows you to remain in your home and maintain control over your life. To learn more or to speak to someone about your situation, contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation.