An IRS Levy is among the most destructive tools the Internal Revenue Service (IRS) uses to collect what you owe them. An IRS bank levy effectively freezes your available funds in your bank account. The IRS freezes the funds in your bank account often leaving you with no money. Your seized assets are then applied by the IRS to your income tax debt. Any resulting unpaid checks or bank fees only add to your financial problems. Any account with your name on it may be at risk of a bank levy – even if the money isn’t yours. Financial institutions must comply with IRS requests or they will be subject to severe IRS penalties. Even if your paycheck is directly deposited into your account(s), you may not be able to access the funds.
You have 21 days (includes weekends and holidays) to get your money back.
FLAT FEE TAX SERVICE, INC. CAN STOP AN IRS LEVY
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An IRS wage levy also known as a wage garnishment presents similar challenges. In these situations, the Internal Revenue Service (IRS) sends your employer a written notice requesting a major portion of your pay as payment for your outstanding income tax bill. Just like banks, your employer must obey the IRS’s request or face severe legal punishment.
The IRS can exercise complete control of your existing and future assets. You need to know that if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they owe you are then sent to Internal Revenue Service (IRS). Bank and wage levies may allow the IRS to control every decision and financial move you make.
The IRS may also seize your Social Security, your Social Security Disability (SSDI) or your Veteran’s Pension. The IRS may seize a minimum of 15% (or more) under the Federal Payment Levy Program (FPLP).
An IRS wage levy (wage garnishment remains in place until you pay your tax liability or until a levy release is negotiated.
Receiving a notice from the IRS of Intent to levy requires immediate attention. Don’t lose your paycheck, your bank account or your Social Security.
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