Fort Lauderdale Bank Levy Lawyer

Fort Lauderdale Bank Levy Attorney

A bank levy can be used by creditors, including the Internal Revenue Service (IRS), to recover the full value of unpaid debts directly from your bank account. If you have received the notice of this action, or your account has already been frozen, it is crucial to act quickly to address this before your financial situation worsens. A Fort Lauderdale bank levy lawyer can explain the situation you’re facing and take actionable steps to limit or prevent these severe consequences.

A bank levy can limit your ability to support yourself and your loved ones, and it causes you substantial financial hardship when implemented. A knowledgeable IRS bank levy attorney can work to resolve this situation.

TaxSmith, LLC: Addressing IRS Collection Actions in Fort Lauderdale

The team at TaxSmith, LLC, can assert your rights when dealing with the IRS. Facing a bank levy can be very overwhelming, and we want to make it easier by explaining your situation, determining what you can do about it, and representing you to the IRS. Although a bank levy is a serious collection action, you still have ways to address and resolve it.

Our firm has decades of tax law experience, and we can use our knowledge to effectively address your unique circumstances. Whether you are an individual or business taxpayer, we can review the options you have to effectively resolve a bank levy and protect your future financial interests. When a levy has been addressed, we can then help you find long-term solutions for your tax debt.

What Is a Bank Levy?

There were 271 million tax returns and other forms filed in FY 2023. The IRS collected over $104.1 billion in unpaid assessments for filed returns in the same fiscal year. The IRS takes action to collect unpaid and underpaid tax returns through collection actions like wage garnishment, property liens, and bank levies.

Typically, a bank levy is not the first step taken. Prior to implementing a bank levy, the IRS sends notices of the unpaid debt. If these notices are ignored and the debt is significant, the IRS may send a notice of its intent to levy. After 30 days, the account will be frozen. After another 21 days, the funds will be removed from the account. If the account does not cover the debt, its penalties, and its interest, the IRS may levy additional accounts.

You can negotiate with the IRS if you do not have the financial ability to pay your tax debt. The nearest Taxpayer Assistance Center to Fort Lauderdale is located in Plantation, at 1248 N. University Drive. Working with an attorney can help you prepare a negotiation strategy, or your attorney can represent you in dealings with the IRS.

How Can You Defend Against a Bank Levy?

If you have received notice of the IRS’s intent to levy, or your account has been frozen, you need to talk with an experienced bank levy attorney. Even if the funds have already been removed, you may have the option to get them back. Having an attorney by your side can improve your chances, and they can provide the information you need.

Negotiating with the IRS is an effective defense against a bank levy, especially if you do not have the financial ability to pay your debts. If paying the debt causes hardship, the IRS is willing to negotiate other options for paying. These could include:

• Penalty abatement, which removes the penalties and their direct interest from your overall tax liability
• Installment agreement, where you pay the entire debt over a set period on a monthly basis
• Offer in compromise, which settles your whole debt for a lower amount

By negotiating with the IRS for another method of payment, you show your intention to pay your debt. The IRS then stops collection actions, like bank levies. Not all taxpayers qualify for these methods of debt settlement. A tax debt settlement attorney in Fort Lauderdale can explain the potential solutions for your unique situation. There may be other options, such as settling for bankruptcy, which an attorney can help you explore.

FAQs About Fort Lauderdale, FL Bank Levy Law

How Do You Clear a Levy?

The quickest way to clear a levy is to clear your debt by paying it in full. After a period of time, the IRS or other creditors will receive the payment and remove the levy. However, many people are dealing with a bank levy because they are in financial hardship and are unable to pay their debt. There may be options to negotiate with the creditor. The IRS is very open to negotiation, having helped 60.3 million taxpayers in 2023.

Can a Levy Be Reversed?

A levy could be reversed, or the financial consequences of the levy could be limited. If you cannot pay the debt in full, you want to talk with the creditor about alternate payment options. For example, a payment plan may be possible. When the levy is placed by the IRS, you could secure options like penalty abatement, installment agreements, or offers in compromise. This can prevent the severe consequences of a bank levy and help you repay your debt.

What Is the Difference Between a Bank Levy and a Bank Garnishment?

A bank levy and a bank garnishment refer to the same process by the IRS to recover tax debt. This involves taking the full amount of your tax debt directly from your bank account. The IRS also uses wage garnishment, sometimes called a wage levy. When the IRS garnishes your wages, it takes a percentage of your wages each pay period to slowly pay off your tax debt.

Does a Levy Hurt Your Credit?

A bank levy may or may not impact your credit, but you only get a bank levy when you owe a significant debt that you haven’t paid back for a long period of time. This will likely hurt your credit. A bank levy freezes your bank account and takes funds from the account, which can limit your financial ability to pay off other debts and further hurt your credit. An attorney can review the specific consequences of an IRS levy.

Work With TaxSmith, LLC, in Fort Lauderdale

A bank levy can put you in a serious financial situation, but there are options to avoid this. If you have tax debt that you can’t repay or are already dealing with IRS collection actions, contact TaxSmith, LLC, today and schedule a consultation. We can help you find a resolution that works for you.