Bank Levy Release

If the IRS is garnishing your wages, has sent your employer a letter stating they intend to begin garnishing your wages, or they have begun or intend to begin a levy of your bank accounts, we may be able to help. We have experience in negotiating the release of IRS wage garnishments and bank levies. 

If a taxpayer ignores IRS requests for contact or demands for payment, it will send a Final Notice of Intent to Levy. Wage garnishment and bank levy - both referred to as levies - are two methods used by the IRS to collect overdue taxes. If the taxpayer has, thus far, disregarded other attempts by the IRS to collect the debt, it will certainly get their attention with a levy.

Wage Garnishment -  An IRS wage garnishment or levy is a written notice sent by the IRS to the taxpayer’s employer requiring the employer to withhold a significant portion of the employee’s pay and to forward it directly to the IRS. Employers are obligated to follow the instructions of the IRS or serious penalties can be imposed. If a taxpayer is self-employed, the IRS can send a wage levy to the taxpayer’s accounts receivable. The source of the receivables, the businesses or individuals, are required to send the taxpayer’s funds to the IRS.

Bank Levy -  Similarly, an IRS bank levy is a written notice, sent to any or all bank accounts held by the taxpayer, freezing the account, and instructing the bank to hold those funds for a stated period of days, and then requiring the bank to forward those funds to the IRS in partial payment of a debt. A bank levy is a one time event, only affecting the funds in the account at the time of the levy. But, the IRS can continue to issue new bank levies as often as they like as long as the debt remains unpaid.

An IRS wage garnishment or bank levy can be very disruptive to the taxpayer and seriously affect their financial situation. The wage levy may remain in place until the tax liability is paid or until it is resolved in some other way, such as an Installment Agreement, a Currently Not Collectible status, or an Offer in Compromise. Also, once an employer has been notified of the IRS intent to issue a wage levy, we may be able to be prevent it from being initiated by acting fast. Employers do not like the hassle of having to deal with the levy and its requirements, and that may impact, depending on the size of the company, the taxpayer's relationship with the employer.

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