If you have outstanding tax debt, you can expect the IRS to do everything in its power to recover what you owe. Going head-to-head with the federal government is not a smart decision, but there are ways you can work with the IRS to reduce the amount you owe or set up a reasonable payment plan that won't completely upend your life.
However, it's best to find a solution to your back taxes quickly before the IRS starts taking money out of your bank account. Contact our Tampa tax relief attorneys to get help today!
What is a Bank Levy?
One of the most effective ways that the IRS can seize funds for back taxes is by taking money directly out of your bank account. A bank levy is typically issued for a one-time pull from your bank account, but the bank holds those funds for 21 days before forwarding them to the IRS. The reason for the 21-day waiting period is simple: the IRS hopes that you will call and make arrangements to pay in full, set up an installment agreement, or dispute the balance due as an error.
How Many Times Can the IRS Take Money From My Account?
The bank will take money out of your account based on the day and time the bank levy is received. However, if the levied funds are not sufficient to pay your tax debt in full, the IRS may issue another bank levy in the future.
While there is a statute of limitations for IRS debt collection of 10 years, there is actually no limit to the number of times the IRS can file a bank levy against you during that period of time.
They may even take it a step further and put a levy on your wages or seize your home, cars, and personal property.
Can the IRS Take Money From a Joint Bank Account?
The IRS can levy a joint bank account if one account holder has delinquent tax debt and all other required procedures have been followed. This is true whether the joint account holder is your spouse, relative, or anyone else. It doesn't matter whose funds were placed into the account, the IRS can still seize the money as payment for tax debt.
- See if you qualify for innocent spouse relief!
Will the IRS Freeze My Bank Account?
In extreme situations, the IRS may put a freeze on your bank account, completely locking you out from receiving funds from the account. The IRS is usually hesitant to take such drastic measures, but it can occur if the tax debt is very substantial or the IRS has tried to contact you repeatedly for some time with no response.
Unfreezing a bank account can be a difficult process, so it's best to resolve your tax debt before such measures are taken. However, if your account has already been frozen you may be able to have the IRS revoke the freeze by paying your balance in full or setting up a payment plan.
Need Help? Contact a Tampa Tax Levy Lawyer
The IRS takes collection activity seriously. The longer you ignore your tax obligations, the more pressure they will apply. That is where I can help. I can put our experience to work for you and ensure you never end up in a levy situation. I may even be able to help you negotiate a settlement with the IRS to pay less than the full amount of your debt.
I may be able to get the IRS to abate some or all of those dreaded penalties that may add up to more than your original tax debt. If a bank levy has caused financial hardship, I will work to get that money back from the IRS.
Do yourself a favor. Contact the Law Offices of Darrin T. Mish, P.A.to schedule a free consultation. Together, we will review your tax situation and create an action plan to protect your bank account and help you start all over tax debt and worry-free.
Contact us online or call for a free consultation. Backed by 20+ years' experience!