IRS Bank Levy


The IRS uses several collection activities to get back tax debts owed by taxpayers. A bank levy can cause a lot of damage for people who fail to pay their state and federal taxes. In a bank levy, the IRS seizes your bank account funds to cover your tax debt. Usually, the IRS will first contact your bank to notify it about your tax debt. Then your bank will freeze your account for 21 days from the time of the notice.


If you do not take any action to resolve your tax debt during that period, the bank will send the money taken from your account that you owe to the IRS. This could be your entire account balance. An IRS bank levy is typically considered the last line of attack by the IRS. You will only be subject to this collection method if the IRS has contacted you several times without getting any response.


We Help You Find the Best Tax Solution

At Showalter CPA, we understand that IRS tax problems can significantly affect your day-to-day life, business, and most importantly, your financial stability. If you have received a bank levy notice, we will carefully evaluate your overall financial situation and come up with a solid plan to help you find the best tax solution. We do our best to have your bank levy released using several effective tax resolution methods to avoid the seizure of your bank account. The many different options include:


Applying for the Fresh Start Program

Preparing an installment agreement

Preparing a partial payment agreement

Preparing an Offer in Compromise

Negotiating for an affordable payment plan

Releasing the bank levy


Call for a Free Consultation at (605) 646-3585


If you feel that an IRS bank levy is likely to create a financial crisis, or you learn that the IRS has already frozen your bank accounts, you should seek immediate tax relief help. If a bank levy would cause significant financial hardship, the IRS may release the levy. Our dedicated and caring bank levy accountants will work with you to assess your financial situation and present your case to the IRS to get the bank levy released.


At Showalter CPA, we always encourage potential clients to resolve their tax debts as early as they can. Do not let the IRS take away your bank accounts. Talk to our knowledgeable tax resolution accountants to help you find the most reliable solution to end your tax debt problems. Call our office at (605) 646-3585. Request a free consultation to discuss your bank levy concerns today.


The Dreaded Letter from the IRS

If you have received a tax notice, IRS letter, audit notice, or other tax correspondence from the IRS, a state agency, or a local agency, it can be difficult to know what to do next. We frequently represent clients with IRS penalties, interest, and taxes due, and we can help you, too. We have worked on items such as IRS Offers in Compromise and Penalty Abatements.


The Tax Help You Need

If you are ready to face your tax problems, we are here for you. We can help you relieve that huge stressful burden, so you feel lighter and free from all that stress. Do not face your tax issues alone. Our trained and certified tax professionals work diligently to find the best outcome we can on your tax issues. Turn to the Showalter CPA Firm, and let us put our tax resolution services to work for you. Call now for more information or to schedule a consultation at (605) 646-3585.


IRS Tax Levy Release


When the IRS issues a notice that it intends to levy and seize your assets you have 30 days to challenge the tax levy to attempt tax resolution or pay the amount due. If you cannot pay the tax debt in full before the IRS is scheduled to seize your assets, you may be able to remove the tax levy by setting up an installment plan with the IRS or by making other arrangements.

The best course of action is to work out a mutually agreeable solution with the IRS and avoid the levy in the first place. Levies allow the IRS to collect the money that it is owed. Therefore, if you can raise the cash to pay your debt in full, including penalties and interest, within a reasonable period, the IRS will release its levy right away.



The Best Ways to Release an IRS Tax Levy:


  • Enter an Installment Agreement. Negotiating an installment agreement releases tax levies immediately.
  • You can show undue hardship. The IRS may release a levy if following through would deprive you of the means to provide for your basic necessities such as food, housing and clothing. You must generally provide financial information to the IRS in order to demonstrate undue hardship.
  • You can be placed in Currently Not Collectible status. You may remain in Currently Not Collectible Status forever, but you must complete a yearly evaluation of your financial circumstances and provide that to the IRS every year. If you remain in Currently Not Collectible Status long enough (generally 10 years), the statute of limitations may run out and your tax obligation would be forgiven.
  • You can obtain a release of a tax levy by filing an Offer in Compromise (OIC).


If you demonstrate to the IRS that you will be more likely to be able to pay the tax you owe or if you wish to sell real estate or some other valuable asset, but cannot do so while a levy is in place, you may request a release. In such cases, the understanding is that you will apply all or part of the proceeds of the sale to pay your overdue tax bill.


We have the experience to put your case in the best possible position with the IRS. Call for a free tax consultation at 605-646-3585.


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