Tampa Bank Levy Attorney

Tampa Bank Levy Lawyer

When you owe the Internal Revenue Service (IRS) unpaid taxes, the agency can take several collection actions to recover those funds. One of these actions is a bank levy, which could freeze your account and impact your ability to purchase goods and services for yourself and your family. The IRS and other creditors must follow a specific process to implement a bank levy. A Tampa IRS tax attorney can help navigate the complexities of a bank levy.

The attorneys at Tax Smith Tax Attorneys have decades of experience helping individual and business taxpayers with their tax debt issues, including resolving bank levies. We know how stressful an IRS collection action is for individuals and their families. We act quickly to understand your situation and determine the ideal method to resolve the levy and protect your finances. After managing a levy, we can address any remaining tax debt.

Defending Against a Bank Levy

Once a bank levy is placed on your account, it is frozen, and you are unable to access the account. After a set period, the creditor will remove the funds necessary to cover your debt. If the debt is greater than the account, additional levies may be placed on other bank accounts. When you receive notice of a bank levy from the IRS, it is important to act and work with an attorney quickly.

A bank levy can severely affect your day-to-day life. A frozen bank account can prevent you from paying your bills and necessary expenses. It is important to act as soon as you are provided notice. Tax Smith Tax Attorneys can determine creative solutions to minimize the effect of your tax debt.

An IRS Bank Levy

The IRS doesn’t begin with a bank levy as a collection action. It is typically one of the last actions taken when notices, negotiations, and other collection actions have failed. Bank levies are more likely if a taxpayer has significant debt and attempts to contact a taxpayer and address the debt have failed. If a taxpayer in Tampa has not followed through on a payment plan or other negotiated settlement for their debt, the IRS may implement a levy.

Unlike consumer creditors, the IRS does not need court approval to place a bank levy. After sending notice of the levy, a taxpayer’s bank account will be frozen. If the taxpayer does nothing during the period the account is frozen, then the IRS will remove the value of the entire debt, its tax penalties, and its interest.

Implementing a Bank Levy

The IRS must follow certain steps before implementing a bank levy, including:

• Providing you notice of the taxes, fees, and interest you owe
• Sending you a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing
• Assigning a third party to oversee your account during the implementation of the levy
• Upon failure to contact the IRS within a period of 30 days, a levy is placed on your bank
• 21 days after the levy order was placed, the bank account will be frozen, and necessary funds will be removed

Failure to act during the established time frames could result in the funds being taken from your account. If you receive a notice, speak with your tax attorney to review your options, which could include disputing the levy, appealing the decision, or negotiating other ways to pay back your debt. The sooner you begin working with an attorney, the earlier they can work to protect your finances.

FAQs About Tampa, FL Bank Levy Law

How Do I Remove a Levy From My Bank Account?

You can remove a levy from your bank account most effectively by paying the debt in full, after which you and your attorney can contact the IRS or other creditor to pay the debt and have the levy released. Other options include allowing your tax attorney to negotiate the release of the levy through methods like a payment plan. A tax attorney can review the circumstances of your case to help find the option that is right for you.

What Is the Difference Between a Levy and a Lien?

The main difference between a levy and a lien is that a levy is the actual seizure of an asset or property, while a lien is a claim on the property. A lien states the intent to seize the asset but does not actually take the property. An IRS lien informs creditors of the government’s right to your property, which can affect your credit score. An IRS levy, commonly placed on a bank account, will remove funds from the account after a period to settle your debt.

Can the IRS Levy Your Bank Account?

Yes, the IRS can levy your bank account if you have unpaid taxes. A bank levy is typically not the first collection action the agency takes. Notices, liens on your property, and wage garnishment may be initial steps. However, if you refuse to cooperate with paying back your taxes, the IRS may take the funds directly from your accounts with a bank levy. Once a bank levy is placed, your account is frozen until you negotiate a settlement or the funds are removed.

Can You Negotiate a Bank Levy?

Yes, you can negotiate a bank levy before or after it is placed in your account. You can even negotiate a levy after the funds have been removed from your account and potentially have them returned to you. A levy may have been placed as a mistake, or you may be able to negotiate a payment plan. It is beneficial to act earlier in the process by contacting a skilled and knowledgeable tax attorney.

Tampa Bank Levy Attorney

A bank levy is a serious situation that can permanently affect your financial abilities. With the help of a skilled and exceptional attorney to navigate this process, you can avoid the challenges that bank levies could present to you and your family. Contact Tax Smith Tax Attorneys today and see how we can help you with a bank levy or other tax debt issues.