27 Sep How to get a Levy Release?
When taxpayers fail to pay their taxes, the most common way the IRS tries to collect is by issuing a bank levy. A process of freezing bank accounts and assuming control of assets, a bank levy can be a nightmare for those already under financial duress. After multiple notices from the IRS without resolution, they will issue a Final Notice of Intent to Levy, which will begin a countdown of days in which only several specific options are available to the taxpayer.
Once a Final Notice of Intent to Levy has been sent, there is a 30-day window to request an appeal or a Collection Due Process (CDP) hearing. If the taxpayer is unable to find a resolution within the 30 days the levy will go in effect, and the funds are frozen for 21 days. On the 22nd day, those funds will be transferred to the IRS, so it is imperative to negotiate a settlement before those funds are lost. If the taxpayer does not have the required funds in their bank accounts, the IRS will pursue Wage Garnishments.
Possible methods of getting a Levy Release:
- Request a CDP Hearing
- Pay in Full
- Enter an Installment Agreement
- Prove Financial Hardship
- Appeal the Levy
- Make an Offer In Compromise
- Apply for the Fresh Start Program
- Wait out the Statute of Limitations
- Prove that Assets have no Equity
- File for Bankruptcy
This definite timeline of escalation dictates prompt attention with the help of a tax professional. Thankfully, the staff at Delgado & Associates has years of experience in obtaining Levy Releases quickly and efficiently. If contacted within 10 days for State Levies and 21 days for IRS Levies, they are usually able to reverse the funds that have been taken and return them into the levied account.