Suddenly Penniless! IRS Bank Levies strike without warning. Your money is here today, gone tomorrow. But what if you live paycheck to paycheck? Imagine the chaos if the IRS suddenly takes $2,000 out of your bank account? Suddenly the mortgage, car, and credit payments are due and you don't have a penny to pay it with. Don't fret. There is a way to fight back!
Bite the Bullet: The fastest and surest way to release the IRS Bank Levy is to pay the IRS what you owe. But what if you don't have the money? There's another way you can force the IRS to surrender your cash.
Getting Lucky: The IRS will release the Levy if they know it'll make you go without basic needs. Prove without a doubt that if they take the money you'll go without food, utilities, basic clothing, tools for work, or school supplies. But watch out, luxury costs like sports car or credit card payments don't count.
How to Fight it!: Roll up your sleeves and follow the 3 simple steps below
1. You need concrete proof that if they place a Bank Levy on your account you can't pay for your basic living expenses. Round up documents like your paychecks, groceries bills, and utility & rent payments.
2. Be prepared to release a detailed financial statement (Usually on Form 433-A) This statement proves the information the IRS needs to determine if you can pay or not.
3. Simply send a letter to the local office of the Taxpayer Advocate. Be specific and detailed and provide plenty of examples. But be careful, if you make a mistake you risk the IRS levy being enforced and losing your cash.
The Clock is Ticking: You're running out of time! When the IRS intends to Levy your bank account they only give you 21 days to appeal it. After that time has passed, all your money will be gone and there will be practically nothing you can do about it. Even I can't help you at that point.
Be on the Lookout: If you know you owe the IRS, look out for a notice entitled “Final Notice of Intent to Levy”. Like it says, that will be your last chance to act before the Levy is placed on you. So act fast and prevent this worst-case scenario from happening to you.