vermont tax attorney

During the 21 day period, it is now prudent to seek expert IRS tax debt help so that a tax attorney or tax specialist is able to negotiate with the IRS to release the funds. Unless an IRS bank levy release is obtained, once the 21 day period has expired, the bank sends the money to the IRS and you will never get it back. You may also consider contacting the Taxpayers Advocate in your area. This would require you to complete paperwork to prove economic hardship in hopes of having the IRS bank levy “lifted” or released. Time is of the essence and your financial future does hang in the balance.

Other Important Things You Need to Know About an IRS Levy:

• How does the IRS know where I bank? The IRS knows your banks accounts from the 1099’s that are filed every year with your tax returns. Even if your tax returns are unfiled, they have still received those 1099’s from the financial institutions themselves.

• What other accounts might be affected? Certificates of Deposit and any account where you have your name and social security number listed. Keep in mind that if you have joint accounts for whatever reason, with family members or even friends, those will be subject to the IRS bank levy also.

• What types of accounts are excluded from an IRS Levy? Life Insurance, Worker’s Compensation, Benefits received from the Department of Veteran’s Affairs, and Scholarships or Grants.

• Will the IRS levy both my bank account and my wages too? The IRS does not typically levy both your bank accounts and your wages. They intend to be paid for your delinquent taxes, but they must leave you just enough to live on, and while they “can” enforce an IRS levy on your wages and your bank accounts, they don’t tend to collect past due taxes in this manner.