The difference between a lien and a levy can be confusing. A lien is just a claim used as security for your debt, but is normally not exercised until the item claimed is sold. A levy is a direct confiscation of your funds or property.
If the IRS levies your bank account, the bank must hold your funds, up to the amount you owe, for 21 days. This allows time to resolve any issues about the account. After 21 days the bank must send the money owed, plus applicable interest, to the IRS.
If you have received a notice of “Intent to Levy” please contact us immediately. This is a very urgent matter that should be handled by a tax professional.
There are various items which could help your tax situation in the case of a levy.
- You already paid the tax.
- You were in bankruptcy.
- There was a procedural error by the IRS.
- The statute of limitations for collection expired.
- You did not receive proper notice or have time to discuss the levy with the IRS.
- You wish to discuss your options for payment.
- You wish to make an “innocent spouse” defense.
- You may also be reimbursed for bank charges if the IRS made a mistake. The sooner you get help from our experienced tax professionals, the sooner you can get relief.
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