What are Bank Levies?
A bank levy may be attached to personal checking account and savings accounts in addition to company accounts. They must freeze current funds up to the amount owed when the levy notice is received by the bank. These funds should be held for 21 days before releasing them to the Internal Revenue Service.
You’re free to use your account in an ordinary way following the amount required by the levy freezes. The bank is not permitted to hand your cash over to the IRS immediately. The money is frozen for 21 days. The money is sent to the Internal Revenue Service and is irretrievable that holding period is concluded. Future deposits may be reached only with added levy action by the IRS. But in the event that you don’t solve your outstanding tax debt with the first levy, the IRS may by their discretion levy your bank account.
What are Tax Liens?
A lien is basically when the government takes legal ownership of your property as a way to continue to hold your debt over your head.
This property can be your home, company, income, autos, jewelry, property, etc. It gives the IRS precedent over any other lenders and is simply a public announcement of your back tax debt. Our team here at ITS is experienced in tax law and will help you get a less expensive alternative to pay your tax liability.
The following standards should be fulfilled, before a tax lien may be filed against you:
- The tax liability was determined
- A written “Notice and Demand for Tax Payment” has been sent
- You have refused or are not able to settle your tax debt within ten days of receiving the notice
Once this criteria is fulfilled along with there is a lien confirmed, it will show up on your credit report. Your tax lien stays a public record until the amount is paid in full. It is a method used by the IRS to obstruct or intimidate you into accepting a hopeless arrangement.
Attempting to negotiate settlements for back taxes with the IRS in your own missed opportunities, and can result in increased penalties and fines, added financial stress. You want the help that an experienced tax attorney can offer. Our professionals know what repayment options are available for what you owe and your monetary rights. We will represent you in all dialogues to bring your issues to a conclusion.