What Is An IRS Bank Account Levy?
An IRS bank account levy can occur when you owe the IRS money and you have not been able to resolve your balance due to either an installment agreement or an offer and compromise or being placed in currently not collectible status. The IRS has the authority to levy your bank account and actually seize the funds in that bank account. You do have the right to request what is called a Collection Due Process hearing before they levy your account. Obviously bank account levies can have very severe financial impact on you as the IRS can levy up to the total amount you owe.
What Are The Laws On IRS Bank Account Levies?
The IRS levy authority can be found in the revenue code and the code sections are section 6331 and 6332. Internal revenue code section 6332 specifically states that any person in possession of property or rights to property subject to levy on which a levy has been made shall, upon demand of the secretary, surrender such property or rights to the secretary, and that’s the secretary of treasury. The bank, if the IRS issues a notice of levy, is required to turn over those funds to the IRS. It is important to note that the law states that the bank only surrender the funds over to the IRS 21 days after the notice of levy is issued. This gives a person a 21-day period to try and work with the IRS to resolve the request to release of the levied fund. Our office has extensive experience in securing release of levies on bank accounts.
How Many Times Can IRS Levy A Bank Account?
There is no limit on the amount of times the IRS can levy the bank account. They can continue to issue levies on your bank account as long as you have an outstanding tax liability. However, the IRS will have to issue a new levy each time since the bank account levy only attaches to the funds in the account at the time the levy is issued.
Can I Stop A Bank Account Levy Once The Bank Has Frozen My Account?
You can stop a bank account levy once the account is frozen. You can either work directly with the revenue officers assigned to your case or you can request a collection appeals program hearing if you’re unable to resolve the account with the revenue officer and you’ve already spoken with the revenue officer’s manager and you still believe that the levy is unfair or is against the law. Working with the IRS through internal channels is also a good way to try and resolve the levy. In numerous cases, I have contacted the revenue officer’s manager, the IRS territory manager, and I have even discussed some cases with the director of collections for the southwest region of the United States in order to secure the levy releases.
Can I Ever Get Back The Money The IRS Seized From My Bank Accounts?
Yes, you can have the funds seized from your bank accounts returned to you if you are able to release the levy in the 21-day time period before the bank has to turn over the funds to the IRS. Our office has secured release of levies for many of our clients and have their funds returned to them. If it was a wrongful levy, even after the 21-day period, file a request for refund with the IRS but that procedure will take much longer.
What Types Of Income Can The IRS Garnish?
The IRS can garnish almost all types of income including wages, retirement distributions, social security, interest on bank accounts, proceeds from the sale of securities, and almost anything else you can think of.
How Much Can IRS Garnish?
For wages, the IRS can garnish a very large portion of your check and leave you with only the federal minimum amount of wages to live on. There are very minimum amount of wages that are not subject to levy. For example, for a single parent with two kids, the IRS roughly only have to levy about $413 a week and your employer will be forced to send the rest of the funds directly to the IRS.
Can An Attorney Help Release A Bank Levy Or Wage Garnishment?
Yes, an attorney can help release a bank levy or wage garnishment. Our office has extensive experience in releasing bank levies and wage garnishments after they occur. And once again, you can, either work with the revenue officer assigned to the case or you can file an appeal’s request through the collection appeal’s program.
For more information on IRS Bank Account Levy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (714) 321-3369 today.
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