Help! The IRS Levied My Bank Account!
When you discover the IRS has levied your bank account, the first thing you should do is consult a qualified tax professional, who will be able to advise you about the best course of action. The IRS offer help on what you should do when they levy your account, but a reputable tax professional can be a lot more useful for helping you out.
A qualified tax professional may request a Collection Due Process hearing if the IRS has levied your bank account. This is an appeal against the levy, and there are a number of difference defences they can use for getting you released from it.
They may argue that paying the levy will cause you a significant degree of financial hardship. This means that they will argue that, should the levy not be removed, you will be unable to meet your basic needs for living.
They could also argue that you paid off all your tax debt before the IRS levied your bank account or that the IRS has made an error when assessing your situation, meaning they should not have levied your account. Additionally, it could be argued that the notice of levy was sent while you were in bankruptcy, meaning you were subject to the automatic stay during this time.
Sometimes the IRS takes the levy after the time to collect the tax owed has expired, therefore in some cases it can be argued that the IRS should not have levied your bank account for this reason.
Other cases they can make can avoid negotiation, such as telling them you would like to negotiate over the tax debt collection options, or that you would like to make a spousal defence. There are many types of arguments that a tax professional can make on your behalf to stop a bank levy.