A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.
If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in. Below are some possible scenarios.
- The IRS could seize and sell property that you hold (such as your car, boat, or house), or
- The IRS could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).
In order to stop or release a bank levy, it is important to act fast or it can be too late. Depending on your tax and financial status, there are many different approaches that can be taken to release your bank levy. The IRS does not want to levy your bank account, since they would much rather resolve your tax issue.
By engaging professional help such as our firm to resolve your bank levy, it shows the IRS that you are cooperating in bringing your tax debt to a resolution. We want to get the best outcome for your personal financial situation, not just what the IRS wants you to do. Let our experience in taking a scary and complex issue get the best results for you.