Orlando Bank Levy Attorney

Orlando Bank Levy Lawyer

A bank levy freezes your bank account and prevents you from accessing the funds within it. It can be placed by any creditor, including the IRS. This can be an incredibly distressing situation, but it’s important to know you have options. An Orlando bank levy attorney can help if you have received a notice about the IRS’s intent to levy your account or if the levy has already happened. An attorney can negotiate with the IRS on your behalf and potentially aid you in avoiding serious financial consequences.

Tax Smith Tax Attorneys: Helping You With IRS Actions

For decades, the attorneys at Tax Smith Tax Attorneys have helped individuals, families, and businesses with their tax debt. We understand the stress of any IRS actions, especially when your assets and financial security are threatened. Our team works to determine what alternate payment options you qualify for and negotiates with the IRS to lessen the effect of a bank levy. Once we have addressed the bank levy, we take the necessary steps to settle any remaining debt.

What Is an IRS Bank Levy?

A bank levy is a measure that can be taken by various creditors, including governmental, consumer, and private entities. Unlike many other creditors, the IRS doesn’t need court approval to initiate a levy. However, it’s important to note that the IRS typically doesn’t resort to a bank levy as the first course of action when a taxpayer has outstanding taxes. The IRS usually issues notices about unpaid debt and may take other, less drastic measures. A bank levy is only implemented for substantial debt that a taxpayer has failed to address.

When the IRS places a levy, the bank account is frozen for a set period of time. If a taxpayer does not take any steps to negotiate with the IRS or pay back the debt, the IRS will remove the amount of the debt, interest, and other penalties from the bank account.

The Process of a Bank Levy

The following must typically occur before the IRS will implement a bank levy:

1. The IRS has sent you a notice of the taxes you owe, including any applicable fees and interest. The IRS is not required to prove you received this notice, only that it sent it.
2. You either refused to pay the requested tax debt or failed to do so.
3. The IRS provided you with two follow-up notices: a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. These notices must be provided 30 days before the levy is initiated.
4. You will receive notice of Third Party Contact when the IRS must contact a bank, employer, or other third party regarding the placement of the levy to collect on tax debt.

After these steps, the levy order will be placed on the account. A bank or other financial institution is required to comply with a court-ordered or IRS bank levy. During this time, the account is frozen, and in a period of time, the funds will be removed. Once the IRS places the levy, this period of time is typically 21 days.

A levy is not only limited to a single bank account. Levies can be placed on any bank account or property that you own. If one bank account does not cover the entirety of your debt after the assets are seized, the IRS may place a levy on other accounts or assets.

If you have received the Notice of Intent to Levy in Orlando or in other areas of Florida, you should act quickly before the levy is placed. It is even more urgent if the levy has been placed and your assets have not yet been seized. The earlier in the process that you begin working with a tax attorney, the more straightforward and less impactful negotiations may be.

FAQs About Orlando, FL Bank Levy Law

How Do I Remove a Levy From My Bank Account?

The most efficient way to remove a levy from your bank account is to pay off the debt which the bank levy is for. You can contact the IRS or other creditor to pay back the debt in full or negotiate another way to release the levy. This may include alternate payment options such as a payment plan or an offer in compromise, if applicable. You can also file for bankruptcy to remove a levy from your bank account. If it is an IRS levy, a tax attorney can help.

How Long Does a Bank Hold a Levy?

For most debts, a bank holds a levy for 21 days. When you receive notice from the IRS that a bank levy was placed on your account, you have 21 days from the date of receiving this notice in which the levy is in effect but on hold. If you have taken no action after this period of time, then the IRS will remove the funds necessary to pay your back taxes from the account. If there is not enough, the IRS may levy other bank accounts.

Can I Deposit Money After a Bank Levy?

Yes, you can deposit money into a bank account that has been levied. The IRS does not typically take funds deposited after the creation of the levy. The funds in the bank account are frozen when the levy is created and will only be available if you negotiate the removal of the levy or if the IRS takes the funds from your account needed to cover your debt. If you do not know how to negotiate the levy, speak with a knowledgeable tax attorney.

How Do I Find Out Who Levied My Bank Account?

When a creditor levies your account, they must provide you with a Notice of Intent to Levy. If you did not receive this notice, you could ask your bank to provide you with a copy of the request that it received to place the levy on your account or accounts. Most creditors must request court approval to place a levy, but for tax debt and certain other debts, court approval is unnecessary. If the court approves the levy, then you can get information about the creditor from the court.

Protect Your Financial Interests in Orlando

At Tax Smith Tax Attorneys, we can help you understand your options for resolving your tax debt and addressing a bank levy. We want to help you find the right resolution so you can feel at peace and move on to the next chapter. Contact our team today to learn how we can assist you.