Miami Bank Levy Lawyer

Miami Bank Levy Attorney

A bank levy not only prevents you from accessing your account’s funds for a time, but it can also lead to you losing some or all of the money held in the account. Many creditors could potentially place a bank levy, including the Internal Revenue Service (IRS). This can put you in significant financial hardship. A Miami bank levy lawyer can be a very helpful ally when navigating the IRS’s intent to levy, and they can potentially find another way for you to settle your tax debt.

An experienced IRS bank levy attorney can help you with this complicated situation, protecting your financial future and working to put you back in good standing with the IRS.

Supportive Legal Guidance With TaxSmith, LLC

The attorneys at TaxSmith, LLC, have collective decades of experience in tax codes and how they apply to business and individual taxpayers. We understand how stressful and financially overwhelming it can be to face IRS collection actions. When you work with our team, we can look over your financial circumstances, your tax debt, and the status of your bank levy.

We can help you make crucial choices about how to address your bank levy with straightforward advice. Taxes can be complicated, but we can make sense of your situation.

Bank Levies in Miami

There were a total of 271 million tax returns filed in the U.S. in fiscal year 2023, and 21 million were filed in Florida. When the IRS does not receive a tax return or other required payments, it informs the taxpayer of their liability. If you receive such a notice, it is important to act quickly. Penalties and interest add up over time, worsening your financial situation.

If you ignore these notices, the IRS will attempt collection actions. One of the last options the IRS uses is a bank levy. This action removes the amount of your tax debt directly from your bank account. This is typically the last resort when taxpayers have substantial tax debt and the IRS cannot reach them to negotiate the debt.

Negotiating with the IRS to limit the consequences of a bank levy can take many forms. This can include penalty abatement, an installment agreement, or an offer in compromise. In 2023, the IRS received over 30,000 offers in compromise, and it accepted about 42% of those offers.

If you have tax debt issues in Miami, a Taxpayer Assistance Center can help. The nearest one is located on 51 S.W. First Avenue in Suite 311. Talking with representatives from the IRS can be simpler and less stressful with the guidance and support of a Miami debt settlement attorney.

The Process of an IRS Bank Levy

Certain creditors require court approval to levy funds from your bank account. The IRS doesn’t require court approval. However, the agency must usually follow specific steps prior to implementing a bank levy. These include:

1. The IRS assessed the tax that you owed and sent you a notice of the liability, its penalties, and its interest.
2. You neglected to pay the tax, or you refused to do so.
3. The IRS sent you two notices, including the intent to levy and your right to a hearing, 30 days prior to the implementation of the levy.
4. The IRS sent notice of contact with third parties, such as your bank or employer, about the collection of your tax liability.

You should work quickly during the 30-day period to settle your tax liability and avoid a bank levy. When a levy is placed, your bank account is frozen. If you have not already taken steps to negotiate your debt, you should use this time to take action. After 21 days, money from your bank account will be removed. This will be as much as is needed to cover your debt, penalties, and interest. The IRS can put subtle levies on multiple accounts.

Working with a skilled tax attorney is crucial for understanding what options you have and negotiating with the IRS. The sooner you begin working with an attorney, the more effective negotiations are likely to be.

FAQs About Miami, FL Bank Levy Law

Can You Negotiate a Bank Levy?

You can negotiate a bank levy. It is easier to navigate this process by acting as soon as you receive notice of intent to levy. If you act after your accounts have been frozen or funds have been removed, it can be harder to negotiate another resolution. While not all creditors are open to negotiation, the IRS is often willing to negotiate, particularly if you are in financial hardship, having assisted nearly 60.3 million taxpayers in FY 2023.

Can You Get a Bank Levy Reversed?

Yes, you might get a bank levy reversed or limit the financial consequences it has on your life. The quickest way to avoid the consequences of a bank levy is to repay the entirety of the debt that the bank levy is for. However, this may not be a financial possibility. When this is the case, it is important to get in contact with the creditor and determine if you can negotiate for other solutions.

What States Don’t Allow a Bank Levy?

No states prohibit the use of bank levies by creditors, although some may have stronger protections against the collection action than others. However, this is more applicable to consumer and commercial creditors. When the creditor is a state or federal tax agency, there are typically fewer limitations to prevent bank levies. Some forms of income are protected from creditors, and this can sometimes include the IRS.

Can a Creditor Take All the Money in Your Bank Account?

If you have significant debt and/or low funds, a creditor could take all the money in your bank account through a bank levy. Some income is partially exempt. A creditor can take the entire value of the debt you owe them from your bank account, including any interest or penalties. This may be all the money in your bank account, or it may not be. It can also be the money in more than one bank account.

Protect Your Financial Future From Bank Levies

There are many potential tax debt solutions, and TaxSmith, LLC, can help you review them. The earlier you begin working with our team, the sooner you can reach a resolution and find a way to manage your tax debt. Contact our firm today.