Bank levies are among the most severe actions the IRS can take in their efforts to collect back taxes. A levy means that the IRS freezes your accounts, garnishes your wages, or even seizes your assets, which they can then draw upon as they choose to get back what you owe them.
These sorts of actions can be terrifying and, in some cases, may actually interfere with your ability to pay back the taxes you owe. Getting a bank levy released requires a payment plan or fulfillment of a condition that forces the IRS to comply, such as documenting the hardship that the levy causes you.
At Instant Tax Solutions, we know how to negotiate with the IRS. We understand their methods, and we are experienced in gathering the records and presenting the reasoning the IRS wants to see.
If you face difficulty with the IRS threatening to seize your assets, we can help. Get in touch with our team of Portland tax attorneys to schedule a free, no-obligation consultation today.
Get Help With Your Portland Tax Levy Release
Releasing a bank levy requires that you meet certain very specific requirements. The most obvious is proving that you have paid the taxes you owe or that you do not actually owe those taxes, such as in the case of filing an amended tax return.
Other circumstances that may trigger the release of a levy include the following:
- The collection period expired before the levy was issued
- You have established an installment payment agreement with the IRS
- The IRS has accepted an Offer in Compromise
- The levy prohibits you from paying the taxes you owe
- The levy creates a measurable economic hardship which renders you unable to pay living expenses
- The IRS has seized assets in excess of the amount you owe them
It can be vital to have help from experienced tax relief experts like those provided by Instant Tax Solutions. We have decades of experience getting the IRS to ease up on collections efforts, and sometimes, we can lower the amount you owe or even eliminate tax burdens with amended tax returns, depending on your specific financial situation.
If you are facing collections notices from the IRS, act before they establish a levy. And if a levy is in place or is imminent, get in touch to see what actions you can take to get it released. Call us right away to review your tax records and get you the control over your finances that you need. We are here for one reason, and that is to get you out of debt and give you peace of mind.
Understanding the Portland Bank Levy Process
Bank levies are severe, and for that reason, the IRS only uses them as a last resort. Before you are subject to a levy, you will get a notice that you have failed to pay.
You will be contacted by mail regarding the amount you owe, the fees and penalties attached, and the options you have to move forward. If, after weeks or months, you still refuse to act, the IRS will then issue a notice of their intent to levy as well as a notice of your right to a hearing.
A hearing can sometimes delay the levy while you make plans to get up to date on your taxes. Sometimes, however, the IRS may choose not to offer a hearing.
This happens if they think that you may take action to secure the funds before they lock them up.
From the moment the levy is issued, your assets become frozen. You cannot access them, while the IRS can draw from them as they please.
The only relief is that your bank must give you three weeks to dispute or otherwise take action to remove the levy. After these three weeks, the funds the IRS requests will be transferred.
Am I Eligible for a Portland Tax Levy Release?
If you meet one of the qualifications mentioned above, you likely are eligible for a release. To apply for a release, however, you must present very detailed evidence that you have met the requirements you cite.
Often, this means documenting the hardship that the levy creates for you, presenting evidence that you no longer owe the taxes, or otherwise have made an agreement for a payment plan with the IRS.
While proving these assertions may seem simple, the level of detail the agency requires can be daunting. That is why having a tax relief professional in your corner is always a good idea.
At Instant Tax Solutions, not only can we help you go through your financial records to gather proof of your need for a tax levy release, but we can also represent you to the IRS.
Even still, sometimes, the IRS denies petitions. If you are denied a Portland tax levy release unfairly, it is possible to appeal the denial through a Collection Due Process hearing or CDP hearing.
At this hearing, you will present the details that are relevant to your qualifications for a release. This will be your last opportunity to get the levy lifted outside of paying off the debt entirely. If your request for a bank levy removal was denied, we can also help you with the appeal process.
Other Types of Liens and Levies
Freezing your bank account is the most common form of levy you might see, but it is not the only option the IRS has. They may also engage in:
- Employee garnishment
- 1099 garnishment
- Electronic Federal Payment Levy Program
- Asset seizure and other forms of property liens
Employee Garnishment
The IRS can contact your employer and demand that they withhold a portion of your wages from each paycheck, which will be sent directly to the agency. This action is formally known as a “wage levy.”
They cannot seize your entire paycheck, but the amount that is exempt often will not leave you with enough to meet your regular living expenses. Wage garnishment like this is permanent until the debt is paid or the IRS releases the levy.
1099 Garnishment
1099 Garnishments are similar to wage garnishments but are a one-time lump sum instead of a continuous portion. This sort of levy takes 100% of your 1099 independent contractor funds when the employer receives notice of the garnishment.
It applies only to the single payment being garnished, however, and not to future 1099 earnings.
Electronic Federal Payment Levy Program (FPLP)
The FPLP is a form of wage garnishment that applies to Social Security payments and monies paid through the Financial Management Service of the Department of the Treasury. It allows up to 15% of wages through these programs to be withheld for the IRS and can be one of the most time-consuming and difficult forms of levies to get released because of the weight of government bureaucracy.
Asset Seizure
Bank accounts are not the only type of asset that can be levied. They can seize almost any asset or holding you have, including physical property such as homes and cars, investments, IRAs, pensions, 401(k) or 403 (b) retirement accounts, stimulus payments, tax returns, and beyond. If you have property of value, the IRS can place a levy upon it.
What Letters and Notices Might I Receive?
Up to the point where the levy is enacted, you may receive a range of different types of letters and notices, including balance due reminders, final notices, and a notice of levy. You will receive a release of levy notice if you get the levy removed.
Balance Due Reminders
The first type of reminders you will receive are simple reminders that you owe taxes. These give you the chance to act before things get more serious.
- Reminder of Balance Due (CP 501) — this reminder just lets you know that you have an unpaid balance and gives you 10 days to respond.
- Second Notice of Balance Due (CP 503) — the second notice follows up and gives you 10 days to remit payment in full.
- Urgent Notice of Balance Due (CP 504) — this is your third and final reminder and gives you another 10 days to pay in full.
Final Notices
When you receive final notices, the IRS is letting you know that a levy is imminent. If you have not yet acted, it is vital that you take action to prevent this from happening.
Call Instant Tax Solutions for help right away.
- Final Notice of Intent to Levy (CP90/CP-297) — This notice lets you know that your assets are at risk. You have 30 days to respond.
- Final Notice Before Levy on Social Security Benefits (CP 91/CP-298) — This notifies you that an FPLP action will be taken against you. You have 30 days to respond.
- Default on Installment Agreement (CP 523) — This notice is issued if you had a payment plan and defaulted on it. You have 30 days to respond, or a levy will be issued.
Notice of Levy
Form 668-W means that a levy has been issued. Your accounts or other assets are frozen, and your bank, employer, or others involved will also get a notice.
Release of Levy
Form 668-D is the notice that brings you relief. It means that you have successfully gotten the levy released. ITS is here to help you get this notice.
Get Your Portland Tax Levy Release and Get Right With the IRS
If you have received a tax levy from the IRS, you are not alone. Instant Tax Solutions can stand by your side and be the ally you need to get that levy released and help you find the peace of mind and financial freedom you need.
Call us today at (888) 363-8958 or use our online form for a free, confidential consultation.
