The clock is running fast and you have to do everything you can to stop the IRS bank levy within 21 days. IRS can get more pressing than any government agency when they need to play it the hard way. Your bank is legally bound to comply with the IRS bank levy procedures, freezing your funds, you need the most. It will disown all the obligatory payments you have to make, your personal bills, refusal of any preset automated debits in your bank accounts, even your newer paycheck deposits will get seized once they’re received by your bank. IRS waits for the 21 days to the notice expiration and after that your money is transferred to the IRS, forever. First thing you should do is consult an expert tax professional to get your funds salvaged through an IRS bank levy release.
When the letter from the IRS actually hits your table, you have still some hope to stop the levy. You need to validate the reasons for the non-compliance of payments and get back on a good standing with the IRS, without losing much time. When you really start with the recovery process, you will realize this is more like a challenge to initiate an IRS bank levy release to get your funds back.
What are the Different Debt Settlement Mechanisms to Salvage Your Money from IRS:-
Receiving bank account levy implies you don’t have sufficient money to pay the back taxes. That’s the reason you must consider your unique financial condition before leveraging on any of these proposed IRS bank levy release procedures:
1. Make Full Payment: You can avail an IRS bank levy release, paying your taxes in full. Though it sounds ‘oxymoron’ like phrases, you can do it, borrowing from your friends and relatives, selling some family heirlooms or mortgaging your house, if you own it.
2. IRS Installment Agreement: Unlike any traditional Installment Agreement, you can get an IRS Installment Agreement accepted by the IRS without going for a full financial disclosure as long as your tax obligation is less than $25,000. You have to produce enough evidence to show that you don’t have a history of defaulting payment though.
3. Option for Compromise or OIC: Compromise option may work for you if you genuinely can’t afford to pay the taxes. In this debt resolution application, the IRS requires you to pay a small fee and a 20% deposit on your tax debt before the IRS reviews your application. While you can validate income restrictions, IRS can waive your fee and deposits. However, very few OIC applications make it to an IRS bank levy release.
4. Currently Not Collectible: IRS declares many taxpayers “Currently Not Collectible" each year. If you can validate your financial hardship, IRS will hold the collection mechanism for the time being, and you can get some more time to resolve your tax debt in some other way.
You can as well put an appeal with IRS or seek innocent spouse relief other than these aforesaid redemption mechanisms. No wonder, dealing with the IRS is the last thing you’d like to do on earth. Let some expert tax consultant deal with this Internal Revenue Service to get your money back through IRS bank levy release.