If you already have an active levy on your account, we can often secure an immediate release while we work toward a long-term resolution.
A levy is one of the IRS’s most aggressive forms of collection action. For wages, they are a continuous garnishment on your paycheck. You are allowed to keep a standard allowance for each member of your household, including yourself, then everything above and beyond that your employer is required to send to the IRS.
For small business owners, the IRS will issue accounts receivable levies. These requests will be issued to your clients or customers. They require them to send any amounts due to your company at the time of receipt to the IRS. Although these types of levies are a one-time seizure of funds, they can be especially debilitating. Not only are you taking a financial hit, but your clients and customers are also being notified of your tax problems.
Bank levies are also a one-time seizure of funds. The date your bank receives the levy they are required to freeze all of the funds in your account. These are then set aside for 21 days before being sent to the IRS. This mandatory hold provides a small window in which you may be able to recover some of your funds before they are issued to the IRS. It’s not easy though, so it’s best handled by an experienced representative.
Just because accounts receivable levies and bank levies are one-time seizures doesn’t mean they aren’t as devastating as a wage garnishment. This is because accounts receivable levies and bank levies can be issued repeatedly, as frequently as the IRS wishes until your account is brought into compliance. While in standard collections, the issuance of levies is systematic, so they tend to be spread out over reasonable time frames. However, if you find yourself assigned to a revenue officer you can usually expect back-to-back levies if you fail to respond to their requests.
Levies are financially crippling, but they can often be released or better yet prevented. Call for your free consultation today to find out how we can help.
Regain Your Income
Can Typically Secure Release Within 24 Hours
May Require A Financial Statement
Can Cause Federal Tax Liens To Be Filed