With an IRS bank levy, the IRS will contact your bank and freeze your bank account. After 21 days, your bank is required to send the funds plus interest. In many cases, the IRS may not levy your bank account and instead levy your wages. If you have enough money in your bank account to cover the taxes owed, the IRS will usually levy it.
Notice of an IRS bank levy can be delivered to you at any time but before a levy goes into effect. Of course, this is not something that the IRS does just for the fun of it. They are not going to move forward with a bank levy until they first try to collect taxes you owe in a more civilized manner. That being said, some people do not acknowledge notices from the IRS. If the IRS cannot get you to respond to their notices or come to a payment agreement with them, they will often times issue a bank levy. It is important to know that there are times when you can appeal an IRS bank levy. Do you know when this is something that you can do?
You have the right to appeal an IRS bank levy 30 days from the date you recieved the notice. You want to act quickly if you need to appeal it. To appeal an IRS bank levy you need to have a good reason. In other words, you cannot appeal just because you don’t want to deal with the levy – you need to show the IRS that you have a good reason. Some arguments that can be used include:
1. The IRS made a procedural error when dealing with your case.
2. You have paid all of your taxes and do not owe the IRS any more money.
3. The IRS sent you a notice while you were in bankruptcy – this is not allowed.
4. The statute of limitation on the IRS bank levy has expired.
5. You were not given the appropriate opportunity to dispute the liability.
6. You are already in an Installment Agreement which is still in tact without any default payments
7. An Offer In Compromise was submitted by you before you actually received the notice
There are two basic ways to appeal a tax levy. One is through the Collection…