Tax Relief: Bank Levy vs. Bank Robbery
Posted by LWM Team on Thu, Jan 07, 2010
Bank robberies: you see them in action movies all of the time. Hostile criminals dressed in masks (or not) swoop in and take over banks. They command everyone to the floor and wield weapons through the air as they proceed to loot the bank of every penny they can possibly get their hands on. They frighten everyone, sometimes injure or kill folks, possibly take hostages, engage in stand-offs and much more. Occasionally, they just speed away into the sunset laughing like madmen.
This is probably how you envision an IRS bank levy as well. Perhaps you picture Uncle Sam dashing head first into the bank in his silly red, white and blue getup and taking off with all of your hard-earned money. The only differences you see are that no one tries to stop the IRS or call the police and there are no people lying on the floor or guns involved. The fact is, while it may feel as though the two are very similar, they are quite different.
With a bank levy, there are rules the IRS must adhere to. First of all, the IRS must notify you of their intent to levy no less than 30 calendar days prior to actually issuing a levy. This gives you, as a delinquent taxpayer, a rather big window of opportunity to make payment arrangements or come to some sort of agreement with the IRS in regards to the amount you owe before the levy process continues.
In the event you have sudden eye trouble and can not see your way clear of doing so, the levy will be placed on your bank account as promised. The money that is on deposit in your account the day the levy occurs will be withdrawn from your account and withheld from both you and the IRS for a mandatory 21 days. Again, you have the chance to make other arrangements. If you do, an IRS bank levy release will be issued and the money will be returned to your account. If not, bid farewell to the money you did not care enough to fight for.