How To Handle a Bank Account Levy

You've just been to your bank and have been informed that you have a levy on your bank account. It's bad. Think of the trouble this will bring in your and your family's life. "What do I do now?" you wonder.

There are a lot of reasons why the IRS could put a levy on your bank account. Here are some:

• Unpaid taxes
• Unfiled tax returns
• Unserved IRS notices due to change of location
• Installment agreement with IRS was defaulted

By not settling your taxes, the IRS punishes you with a bank account levy. The IRS can take all your funds by serving a Notice of Levy to the bank attached to your account. You will not be able to use the money in your account until the IRS cancels the levy. The IRS can't get hold of your money for twenty-one days, however, starting on the date of the levy. Act quickly, as deals can still be made with the IRS on this timeframe.

Release of a Bank Account Levy

The release of a levy is not an easy task, especially when it comes to bank accounts. One of these will have to be done:

• Offer to compromise, file for bankruptcy, or settle the taxes in full
• If 10 years have lapsed from the assessment date, prove that the statute of limitations for collections have expired.
• Prove to the IRS that the taxes can be collected if the levy is released.
• An installment deal
• Prove that the levy will result in financial hardship.
• Taxes owed are less than the funds in your account.

Contact the IRS officer in charge of the levy or his manager if any of these apply to you. Give

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