Posted by LWM Team on Wed, Sep 01, 2010
Circumstances That Qualify You For An IRS Bank Levy Release
To get IRS bank levy release relief, you should first note that there are two main ways to be released from a bank levy: if the levy has been paid off – meaning you are no longer in debt to the IRS or if the statutory collection period for the levy has expired. In the later case, if the issue of levy has been served before the end of this expiration period, you will still have to pay – you will only be released from paying the bank levy if you are not served the levy within the statutory collection period.
However, you can get relief from a bank levy in certain other circumstances. IRS bank levy release help can be accomplished if paying off the levy will result in some kind of economic hardship. “Economic hardship” is defined based on the minimum income an individual needs for their basic needs of food, shelter, bill payments etc. If it is determined by the IRS that you will be unable to provide for your basic needs, the levy will be cancelled.
One of the most common methods of getting IRS bank levy release is by making an installment agreement with the IRS. You may wish to do this if you owe a lot, i.e. if you owe more than you have or if you don’t have sufficient amount of income. The amount you will have to pay per installment can vary, but installment agreements are a very good way to get a bank levy release as they can really take the strain off your finances.
Posted by LWM Team on Fri, Mar 12, 2010
The first thing you should know about when you realize the IRS levied your bank account is that you have 21 days in which you can get the money back into your account, according to the law. During this time period, your bank holds the money before giving it to the IRS, and in some cases it is possible for them to give you it back so long as the IRS agrees. You can contact the IRS to try to negotiate with them should your bank account be levied. Sometimes they will release the money upon negotiation.
You should note than when the IRS levies your bank account it is a onetime deduction rather than something that is continuous (like a wage garnishment). This means that if your bank takes money out of your account because of an IRS levy, you will be able to put money in the following day and it will be entirely yours – neither your bank nor the IRS can touch it.
Of course, it is possible that the IRS may levy your bank account again, but they tend to avoid doing this and don’t favor taking money from the same source over and over again, and they especially are unlikely to levy your bank account multiple times within a small timeframe.
If you find out the IRS has levied your bank account, it is very important to act quickly and to contact them as soon as possible. Time is the most important factor for getting your money back, and the 21 day window period exists for a reason – therefore you should take advantage of it.
Posted by LWM Team on Fri, Mar 05, 2010
Often, after being served a bank levy and paying it off, an individual may require IRS bank levy release help and they may need to find out whether they are actually able to use their bank account again or if there are any limitations imposed on their account.
Bank levies are very different from wage levies. Wage levies are something that are continuous, so you have to keep on paying them, but bank levies are not like this.
A bank levy is simply a one-off deduction from your bank account, so anything you put into it after the levy has been paid in full (whether it be all at once or through an installment agreement between you and the IRS) is completely yours and the IRS will not take any of it from you. Many individuals however decide to switch bank accounts anyway after receiving bank levy release help.
The only way the IRS will take money out of your account after you have paid your bank levy off is if they issue another levy – although this is something you would be made aware of before it happens.
More importantly, if you want IRS bank levy release help, you have a window period between when the money is deducted from your account to pay the levy and when the IRS actually gets it. This window period is 21 days and the bank holds the money during this period, meaning neither you nor the IRS gets it. During this period, it is sometimes possible to negotiate with the IRS to get the levy released, and if they do so within 21 days, the money will go back into your account.
Posted by LWM Team on Thu, Mar 04, 2010
To get IRS bank levy release help, you should first note that there are two main ways you are able to get released from a bank levy: if the levy has been paid off (meaning you are no longer in debt to the IRS) or if the statutory collection period for the levy has expired. In the later case, if the issue of levy has been served before the end of the expiration period, you will still have to pay. You will only be released from paying the bank levy if you are not served the levy within the statutory collection period.
However, you can get relief from a bank levy in certain other circumstances. IRS bank levy release help can be gained if it is determined that it will result in some kind of economic hardship if you pay off the levy. “Economic hardship” is defined based on the minimum income an individual needs for their basic needs of food, shelter, bill payments etc. If it is determined by the IRS that you will be unable to pay for these things, the levy will be cancelled.
One of the most common methods of getting IRS bank levy release help is through making an installment agreement with the IRS. You may wish to do this if you owe a lot (especially if you owe more than you have) or if you don’t have a lot of income. How much you will have to pay per installment can vary, but installment agreements are a very good way to get bank levy release help as they can really take the strain off your finances.