Getting an IRS Tax Levy Released

A bank levy is a nasty tool the Internal Revenue Service has at their disposal to use against taxpayers they believe owe them money.
The IRS issues a notice of it to the person's bank. This notice requires the bank to freeze the party's assets for twenty-one days. During these twenty-one days, the taxpayer or their representative can negotiate with the IRS for release of the levy. If no compromise is reached, after twenty-one days the money in the accounts remits to the IRS.

Any money deposited after the levy remits is the property of the account holder. If the IRS wants this additional money, they have to file another levy in order to get it.

The Internal Revenue Service can file an income levy as well. It will not be released until all the funds are paid either in full, through an Offer in Compromise, an installment plan, or if the taxpayer is declared Currently Not Collectible.

Because a bank levy is generally a one-time event, IRS will not release it unless payment in full is satisfied or the taxpayer can prove "extreme financial hardship". You have extreme financial hardship if the funds in the bank are necessary to the taxpayer for their health and welfare, or generation of income. Some of these hardships might be upcoming medical expenses, utility shutoff notice, foreclosure, repossession, business payroll, or eviction. If the Internal revenue Service does agree to a release because of one of these hardships, they generally allow only the release of enough funds to cover the expense.

You can also get it released through an Offer in Compromise. However, such a release can only take place after the Internal Revenue Service has determined that the Offer in Compromise meets all procedural requirements. You can never be certain how long this will take, if it happens at all.
The truth of the matter is that the IRS strongly believes in the philosophy of "a bird in hand" and that to get a levy released you are going to have to do a lot of work and, most likely, hire a professional to help you.

If you find your income or your bank accounts under an IRS Levy, you will want to contact a tax attorney or tax resolution specialist immediately. Tax resolution teams are usually made up of former Internal Revenue Service Agents, CPAs, and tax attorneys. In this situation it is going to take the work of these professionals if you have any hope of releasing the Internal Revenue Service's Tax Levy against you.

When you receive a notice from IRS for tax debt, you would get restless. But even worst happens when IRS reasons your bank account for tax Levy. All your efforts concentrate on one single action - to get it released. How to handle such embarrassing situation? Chintamani Abhyankar provides valuable tips.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.