If you owe unpaid IRS taxes, you should be concerned that the IRS can take your bank account to collect unpaid tax. The bank account seizure can be a shock and come as a surprise. Plus, the IRS can take your bank account at a time when you need your money more than ever – a mortgage or rent payment is due, a car loan payment is due, a credit card payment is due. As an experienced tax attorney, I understand the stress and uncertainty associated with a client’s entire bank account being seized by the IRS. In this blog post, I will provide a comprehensive guide to help you understand the IRS’s ability to levy or seize your bank account to collect unpaid IRS tax.

IRS Can Take Your Bank Account

When you have unpaid taxes, the IRS has the authority to take your bank account to recover the tax amount owed. However, the IRS is required to follow specific procedures and respect your rights throughout the process.

By exploring the process, your rights, and proactive strategies to protect your bank account, you can gain clarity and take informed steps toward resolving your tax debt. It’s important to remember that seeking professional assistance from a tax attorney is highly recommended when dealing with IRS collection actions. Let’s dive into the details when the IRS takes your bank account to better understand your rights and options.

How the IRS Can Take Your Bank Account

The IRS can take your bank account by conducting a bank levy. To initiate a bank account levy, the IRS typically sends a Notice of Intent to Levy, providing you with an opportunity to resolve your tax debt or appeal the action. If no resolution is reached within the specified timeframe, the IRS can proceed with levying your bank funds.

What are Your Rights After the IRS Takes Your Bank Account?

It’s essential to understand your rights when facing a bank account levy. You have the right to receive a Final Notice of Intent to Levy before the levy is enforced. You also have the right to appeal the levy, request a Collection Due Process hearing, and explore options for release of the levy.

Strategies to Protect Your Bank Account from IRS Levy

While the IRS has the power to take your account, there are strategies you can employ to protect your assets. These include:

Timely Communication:

Open lines of communication with the IRS and respond promptly to any notices or correspondence. This demonstrates your willingness to resolve your tax debt and may help prevent or halt a bank account levy.

Installment Agreement:

Negotiate an installment agreement with the IRS to repay your tax debt in manageable monthly payments. This can alleviate the need for a bank account levy.

Offer in Compromise:

Explore the option of an offer in compromise, which allows you to settle your tax debt for less than the full amount owed. If accepted, this can prevent or release a bank account levy.

Financial Hardship:

If a bank account levy would cause severe financial hardship, you may qualify for the Currently Not Collectible status. This temporarily suspends collection activities, including bank account levies.

Seeking Professional Assistance

Navigating IRS collection actions can be complex and overwhelming. Consulting with an experienced tax attorney is crucial to protect your rights, explore available options, and negotiate with the IRS on your behalf. They can provide valuable guidance tailored to your specific situation and help you develop a strategy to address your tax debt effectively.

Conclusion

While the IRS has the authority to levy or seize your account to collect back taxes, understanding your rights and exploring proactive strategies is key to protecting your assets. By familiarizing yourself with the levy process, your rights, and available options such as installment agreements, offers in compromise, and financial hardship status, you can navigate the challenges of tax debt and work towards a resolution.

Remember, seeking professional assistance from a tax attorney is highly recommended when seeking IRS tax relief. They have the expertise to advocate for your rights, negotiate with the IRS, and protect your assets. By taking proactive steps and working with a tax attorney, you can address your tax debt effectively and regain control of your financial situation. Contact attorney Robert Schaller to help with your tax problems.