Melbourne Bank Levy Lawyer

Melbourne Bank Levy Attorney

Bank levies can cause you immediate and long-term financial hardship, cutting you off from your finances, preventing you from covering bills, and leaving you with much less financial stability. A bank levy implemented by the Internal Revenue Service (IRS) can be stressful. If you have received a notice for a bank levy, you must act fast. A Melbourne, FL, bank levy lawyer can help you address a bank levy and resolve it in a way that protects your finances.

Tax Smith Tax Attorneys: Your Tax Attorneys in Melbourne

There are several actions the IRS can take to collect unpaid taxes, and a bank levy is one of the most serious. However, receiving a notice of a bank levy does not mean you are out of options. The team at Tax Smith Tax Attorneys can help you resolve a bank levy and negotiate another method of paying back your tax debt.

Our team knows how overwhelming it can be to deal with a bank levy affecting your financial stability. Our goal is to provide you with information and advice about your options. We can negotiate with the IRS for you and find the most effective way to avoid further financial hardship. We can help you resolve the levy and then resolve your tax debt. We prioritize transparency and provide affordable solutions without high-pressure tactics. Our clients receive personalized attention directly from our attorneys, ensuring clarity and guidance every step of the way.

What Is a Bank Levy?

A bank levy can be implemented by creditors, which allows them to freeze your account funds and, after a period of time, remove the funds from the account that satisfy the debt. While most commercial and consumer creditors have to get court approval to implement a bank levy, the IRS does not. Bank levies are one of the last tools the IRS uses to recover unpaid taxes, typically after other methods have been unsuccessful.

The IRS will only implement a bank levy if a taxpayer owes a substantial debt and has ignored the IRS’s notices and attempts to contact them. The IRS may also place a levy on a bank account if a taxpayer negotiates a payment plan and has failed to make their payments.

If you receive a notice of an IRS bank levy, you need to act quickly. Soon after this notice is sent, your bank account will be frozen, preventing you from accessing the funds. After a waiting period, the IRS will remove the value of your debt from your bank account, including its penalties and interest.

Act Quickly

You need to take action during the waiting period to secure an alternate method of paying back your tax debt. This is especially important if you rely on the funds in your bank account, and the removal of the debt will cause you financial hardship.

How Can You Address a Bank Levy?

Addressing an IRS bank levy requires directly communicating with the IRS about your financial situation and how you can resolve the debt through alternate methods. You may be able to address the debt through:

• Penalty abatement, which allows you to erase some penalties and interest from the overall debt
• An installment agreement, which allows you to make monthly payments for a set period of time until the entire debt is paid off
• An offer in compromise, which enables you to pay a smaller lump sum to resolve the rest of the debt

The IRS is generally willing to work with taxpayers who communicate with them and do not have the financial ability to pay the full amount.

There may also be other options for addressing a bank levy, including negotiating for wage garnishment or filing for bankruptcy. An experienced tax attorney can look at your unique situation to offer creative solutions.

FAQs

Q: How Can You Fight a Levy on Your Bank Account?

A: You can fight a levy on your bank account by contacting the creditor to attempt to negotiate. If the levy was placed by the IRS, it can be useful to work with a tax attorney to interact and negotiate with the IRS. Bank levies by non-tax agency parties must be court-approved, so if the levy is not approved, you may want to talk with an attorney to determine the next steps.

Q: How Do I Get a Levy Removed From My Bank Account?

A: A levy can be removed from your bank account by paying off the debt that you owe the creditor or by contacting the creditor to negotiate another form of payment. If you ignore the levy, it will not go away, and instead, you may lose all the funds needed to cover the debt. If the bank levy has been placed by the IRS, they are willing to negotiate, especially if you do not have the funds to cover the debt.

Q: Can You Negotiate a Bank Levy?

A: Yes, you can negotiate a bank levy prior to it being placed and during the waiting period. You may even be able to negotiate after funds have been removed from your account and even have the funds returned to you. IRS levies are easier to negotiate with a knowledgeable attorney on your side. An attorney can review your financial circumstances and determine what settlement options you have, including a payment plan, penalty abatement, or an offer in compromise.

Q: How Much Can Be Garnished From Your Bank Account in Florida?

A: Your bank account can be garnished for as much as the debt you owe in Florida. If the funds in one account are insufficient to cover the debt, the creditor may garnish multiple bank accounts. Debt can also be recovered through direct wage garnishments. Under federal law, a creditor cannot exceed more than 25% of an individual’s income in garnishment. However, this limitation does not apply to certain debts like state and federal taxes or child support payments.

Addressing a Bank Levy Before It’s Too Late

You should never ignore a bank levy. Contact Tax Smith Tax Attorneys instead. Our firm has years of experience with tax codes and can work to find a resolution to the levy that perseveres your finances. We want to help you ease your stress.