If trouble paying taxes has been a problem for you before, you may have been issued a bank levy by the IRS. This simply means that the IRS has taken money out of your account in order to pay off the tax debt you owe them. In order to avoid action being taken again you by the IRS and, therefore, to get bank levy relief, you need to ensure you are paying your taxes exactly as you should right now. If you owe the IRS money from the past, they will not negotiate if you are not currently paying your taxes properly.

A good idea for those who are self-employed/run their own business and want bank levy relief is to create a bank account solely for taxes. You should even name the account “tax account” or something similar to make it perfectly clear what its purpose is. For every payment you receive from clients, take a specific percentage off of it (10-20%) and deposit that percentage into the tax account. This will ensure the account has enough money to cover you. You will then pay the IRS the money you owe them four times a year, from this account each time (The 15th of April, June, September and January).

Doing this will earn you goodwill points with the IRS because not only will they see you as someone who is more like an employee than a businessperson, but they also will see you as someone who puts effort into their taxes and has no intention of dodging any. Just make sure you prioritize your payments into your tax account and don’t skip paying it due to other bills (such as credit cards).

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The IRS can be real sticklers when it comes to folks paying their “fair share” of taxes. One of the painful “side effects” often experienced in association with the failure to pay taxes is being levied by the IRS.

Levies are different than property seizures; the latter applies to taking from you physical property in your possession, such as houses and cars. Levying, on the other hand deals with “freezing” your access to possessions that belong to you, but which are not directly held by you. Examples would be bank accounts, dividends, and accounts receivable, as well as other assets of this nature.

Should you be interested in conjuring a levy of your very own, you simply need to meet certain criteria and you will have your chance. The first step is to ignore or refuse to pay assessed taxes even after the IRS issues a Notice and Demand for Payment. Wait just a tad longer and you should receive a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. Ignore that too; in approximately 30 days, your highly coveted levy will “arrive”, carefully packaged for your enjoyment.

If it does not fit comfortably or if you feel that it is just not flattering (perhaps the shade does you no justice), you may change your mind and attempt to exchange your new levy for an IRS Bank Levy Release. This will “thaw out” your accounts.

From the moment an account is levied, there is a margin of 21 days during which the bank holds the money rather than simply handing it over to the IRS. This is your window of opportunity to attempt to convince the IRS to see things your way. In order to successfully accomplish this task, it will need to be determined whether or not you are eligible for an IRS Bank Levy Release.

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As much as the IRS hates to admit it, they make mistakes too. Similarly, as much as we hate to acknowledge it, most IRS agents can pass for human…as long as it is not tax season. With this in mind, it should not surprise you that people may be “accidentally” unjustly levied by the IRS.

If this happens to you, there are options. You can ask to have your case reviewed, request a Collection Due Process Hearing with the Office of Appeals (within 30 days of the date of your levy notification) and you may be able to get an IRS Bank Levy Release. This generally holds true if any of the following circumstances apply to your case.

• The levy notice was sent by the IRS after you paid what was owed. (What wonderful record keeping system have they “upgraded” to now?)
• The IRS assessed tax and sent the levy notice during your bankruptcy, which was when you were subject to an automatic stay of your taxes. (“You filed bankruptcy? When? Prove it!”)
• The IRS made an error (gasp!) in procedure during the assessment of your tax liability. (Please refer to the first paragraph above.)
• The statute of limitations was up before the levy notice was sent. (Do they let that sort of thing occur?)
• You did not get a chance to dispute the assessed liability. (Like they would have listened to your dispute anyway!)
• You wished to discuss collection options. (They put you on hold for how long? And disconnected you?)
• You need to make a spousal defense. (Duh! Did you not know that if you make them laugh with stories about your spouse you also get a discount and an extension?)

On the serious side though, when the decision has been made regarding your IRS Bank Levy Release, they will inform you. Should you not agree with their determination, you will be awarded a parting gift of 30 days to bring a suit to contest their decision. This only happens if they (have the audacity to) deny you an IRS Bank Levy Release.

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There are instances in which, no matter what tactics you use, your efforts to acquire IRS bank levy release help will in vain. However, at times, Uncle Sam is required by law to release a levy. There are actually five cases which require the IRS to release a levy without any further ado:

• If the primary tax liability is taken care of, or if it becomes unenforceable because too much time has lapsed.
• If the IRS decides that by releasing the tax levy there will be a better chance of collecting the tax which is due.
• If there are acceptable payment arrangements made by the delinquent taxpayer in regards to his or her tax liability.
• If the IRS determines that the levy is creating an unfortunate financial hardship for the taxpayer.
• If the fair market assessment of the property in question is greater than the delinquent tax liability, and the partial release of the levy would not halt or interfere with collection efforts.

Another method of IRS bank levy release help is that taxpayers can ask the IRS to sell their levied property.

• The IRS is able to return property that had a levy placed on it if:
• IRS administrative procedure was not strictly adhered to, or the levy was issued prematurely.
• Payment arrangements were made by the taxpayer to cover the repayment of the tax liability and the arrangement sets forth no other provisions.
  Returning the property will enhance the ability of the IRS to collect the tax debt that is owed.
• The taxpayer has given consent and it is agreed that return of the property is in the best interest of both the IRS and the taxpayer.

In these instances of IRS bank levy release help, the property is returned as if it had been unjustly levied. The taxpayer, however, will not receive interest.

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