Remove Bank Levies from your Account

A bank levy occurs when your bank account is frozen and the money in the account is seized and sent to the IRS or another creditor to pay back taxes or a debt. There are other reasons a bank levy might occur, but in most cases it happens when taxes or other debts go unpaid.

Bank levies occur after a reasonable period of time has passed where the IRS or creditor tried to collect payment for the back taxes or debt. When repayment does not occur then a bank levy is placed on the debtor’s account as a last result to receive payment. The IRS has many options for people who owe taxes. Those who do not pay will receive multiple letters in the mail regarding the back taxes and that a bank levy is a possibility.

When a levy is placed on your bank account, whether it is checking or savings, it will be placed for the amount of tax due. If there is more money in the account than what is due then this amount will not be touched. If there is not enough money in the account then the balance will be taken to pay the taxes and future deposits will go to pay the debt.

Nobody wants a lien on their bank account and if you are at risk of a levy then call Professional Tax Care. We can help you enter repayment with the IRS or submit an offer in compromise to reduce the amount of tax owed. A bank levy is not the only option!