How it Starts:
Single mothers have it tough. As a single mother you have to work long hours, and when you do have free time it's dedicated to your children. With so little free time it's hard to squeeze in being your own accountant as well. Amid all the chaos, a lot of single mothers neglect to file their taxes.
Bank Levy Explained: A Bank Levy is essentially a freeze on your bank account- you will not be able to withdraw money. The IRS will take the money out of your account after 21 days of issuing the Bank Levy. This holding period is to allow you to work with the IRS before they clean out your account.
Complete Chaos: Imagine paying all your bills with checks unaware that the IRS has taken all the funds from your account. Suddenly all your utility companies are calling you saying your payments are late and your checks have bounced. This scenario does happen because a Bank Levy is placed on your account without warning.
Hardship Plan: If you are a single mother on a fixed income, you might qualify for a hardship plan that would keep them from Levying your Bank account. You have to contact the IRS and prove to them in detail that you need the money to keep you and your children from going without necessities. It wont be easy! Especially when the IRS practically has your money in their hands. When Uncle Sam has his money, he doesn't want to let it go.
How to Fight it!: The IRS will not let go of it's hold on your Bank account without a fight. Roll up your sleeves and follow the steps below:
- You need concrete proof that if they place a Bank Levy on your account you can't pay for your basic living expenses. Gather documentation like your paychecks, groceries bills, and utility/ rent payments.
- Be prepared to release a detailed financial statement. This statement proves the information the IRS needs to determine if you can pay or not. If you have anything you want to protect from the IRS, it is a good idea to consult with a tax debt professional before doing this.
- Send a letter to the local office of the Taxpayer Advocate. Be specific and detailed and provide plenty of examples.
Act Fast: When you know your money is on the line, you have to act fast! The IRS wont give up without a fight, but now you're armed with the knowledge you need to quickly fight back and save your money.
Now you have the smoking gun...Use it!
Labels: Children and Tax Debt, Financial Hardship, IRS Bank Levy, IRS Wage Garnishment