Tax Relief Services

An IRS bank levy is when the IRS contacts your bank and places a freeze on your account, preventing you from having access to the funds. The IRS uses this strategy to maximize its likelihood of collecting past due tax debt.

You have 21 days before your funds will be sent to the IRS once it levies your bank account. If you set up an agreement with the IRS, an IRS bank levy release can be same-day.

If you want to get an IRS bank levy removed, you’ll have to contact the IRS to inform them of your intent to pay your tax debt in full using the money in the frozen bank account. 

There’s also the possibility of getting the bank levy removed by getting the IRS to agree to a payment plan arrangement if you don’t have the funds to pay the tax debt in full. You’ll also need to get the IRS to send you a levy release form to give to your bank. Or, you can get a professional firm like Alleviate Tax to resolve it for you, making the process far more painless.

The only way you can stop an IRS bank levy is to either pay the tax debt in full or to make payment arrangements with the IRS. Alleviate Tax can help you deal with the IRS to stop your bank levy.

Not directly, but indirectly through an IRS bank levy, yes. That’s a significant difference between an IRS bank levy and an IRS wage garnishment. 

When the IRS takes money directly from your paycheck before it’s deposited into your bank account, that’s a wage garnishment. 

When the IRS levies your bank account, they directly contact your bank to take control over all the money in the account, not just your paycheck. 

This is why an IRS bank levy should be remedied as soon as the IRS notifies you of their intent to levy your bank account. You’ll no longer have access to funds being deposited into the account, at least until you’ve paid the tax debt.

The IRS isn’t authorized to freeze the funds in your bank account without first giving you sufficient notice. Once your bank receives the notice from the IRS that they intend to seize the funds in your account, your bank is obligated to hold the funds in your account for at least 21 days before it sends it to the IRS. This gives you some time to get some IRS bank levy assistance from a seasoned bank levy expert like Alleviate Tax if paying the full tax debt the IRS is collecting on isn’t within your means.

Fortunately, an IRS bank levy does NOT affect your credit or credit score. There is no information about your banking activity that is sent to the credit bureaus, so an IRS bank levy will never end up on your credit report to hurt your score. That said, the effects of having all of your funds seized can prevent you from paying bills, which could hurt your credit.

The IRS doesn’t actively monitor bank accounts. However, it can easily obtain access to review them if you’re suspected of fraud or are audited by the IRS.

If the IRS places a levy on your bank account, the levy will only remain until the funds seized by the IRS levy are sent to the IRS, usually after 21 days. Alleviate Tax can help you resolve your IRS bank levy issues so you can regain access to your bank account.

Are you being threatened with a bank levy by the IRS? AlleviateTax is here to help you get tax relief fast. If you’re unable to pay the amount the IRS is trying to levy from your bank account, Alleviate Tax might be able to help you get a payment arrangement set up with the IRS so you can get access to your bank account faster. Reach out to our team of IRS bank levy experts today!

Generally, the IRS has a limit of ten years to collect back taxes, known as the “ten-year statute of limitations.” The start of the ten years is the date the taxes were assessed. Mostly, the IRS can’t continue collection efforts after the ten-year statute of limitations.

Have you moved a lot or haven’t received mail for some reason and don’t know if the IRS has sent delinquent tax notices to you? You’re able to check if you owe the IRS and if your taxes are delinquent by accessing your federal tax account on the IRS’s website at IRS.gov/account. There, you can find any amounts owed, balance details, payment history, and view transcript notes on your account.

In most cases, the IRS won’t put you in jail for owing back taxes. Actually, “back taxes” is fairly common. 2018 data shows that 14 million Americans owed back taxes totaling an astounding $131 billion! The IRS certainly didn’t throw 14 million Americans in jail that year.

But let’s be clear, there are some important distinctions about what constitutes “back taxes.” 

You could simply be behind on paying for your quarterly tax filings and would technically owe “back tax.” But the IRS doesn’t pursue legal action on these sorts of cases. The IRS only takes legal action against blatant tax fraud cases and must prove guilt through an extensive auditing process.

The IRS has to prove you intentionally tried to avoid paying taxes you knew were fairly your responsibility. Examples could include claiming non-existent dependents or deductions that aren’t yours to claim. Double-claiming children by divorced parents is another common way people try to defraud the IRS.

You should file any delinquent IRS tax returns for numerous financially beneficial reasons as soon as you can. One of the main reasons is that if the IRS identifies you have an unfiled prior year return, they can seize your tax refund and hold it until you file your return. If you need help filing past-due tax returns, Alleviate Tax has delinquent tax specialists ready to assist you.

Delinquent IRS tax returns filed up to three years past the return due date are still eligible for refunds.

Technically, you’re allowed to file back taxes at any time with the IRS. That said, filing over six years past the due date can cause serious problems with the IRS, so avoid waiting that long.

If you attempt to simply ignore the IRS and not file your tax returns, the IRS may file one for you called a “substitute for return” or “SFR.” The biggest downside to this is that only your income is accounted for––no deductions or credits, plus there is a penalty for filing late.

The good news is that you can file your tax return after the IRS files an SFR. You’ll have to send them to a specific place, though, and you’ll need to request a collection hold on your account to allow processing time. Alleviate Tax has SFR experts on staff who can help you file a more fair return.

The Fresh Start Program benefits are far-reaching, so the most important first step to getting tax resolution help is getting any delinquent tax returns filed immediately. The number one thing that will get you into a better position with the IRS is having all of your tax returns filed. 

If you’re struggling to figure out how to file your delinquent tax returns, Alleviate Tax is here to help! This is the most important yet easiest step to take, so contact one of our tax specialists and start getting your taxes back on track today!

If you are unable to pay your tax bill, the good news is the IRS is usually willing to work with you as long as you can prove your financial inability to pay the amount in-full. After all, they’d rather get something versus nothing, and the best way for that to happen is if they find common ground that’s financially feasible for you.If the IRS is threatening to levy and seize your assets, Alleviate Tax may be able to stop the process by negotiating to get an installment plan approved and get you back in compliance with the IRS.Some taxpayers exhibit incredibly dire circumstances that may make it impossible to pay off their tax debt entirely. In these situations, Alleviate Tax can help determine the maximum relief available, which sometimes includes settling for a fraction of the demanded amount.