Naples Bank Levy Lawyer

Naples Bank Levy Attorney

Bank levies are used by creditors to recover an unpaid debt. They enable the creditor to remove the entire amount of the debt from the bank account of the person who owes them. It can be very stressful to deal with a bank levy, as it freezes your bank account before taking the funds. This can cause significant financial difficulties. A Naples bank levy lawyer can help you address a bank levy implemented by the Internal Revenue Service (IRS) for unpaid taxes.

TaxSmith, LLC: Experienced Naples Bank Levy Lawyers

The IRS has several options for recovering unpaid taxes. A bank levy is one of the more serious types of enforcement actions, as it can quickly and substantially affect you financially. At TaxSmith, LLC, we have decades of experience in tax laws and the many collection tactics the IRS uses. We can negotiate with the IRS to prevent the levy from removing funds. Then, we can show you how to eliminate any remaining tax debt.

If you cannot financially pay back the full amount of the tax debt, the IRS will likely negotiate with you. This way, the agency receives a portion of the taxes it is owed. Methods such as an installment agreement or an offer in compromise could be useful alternatives to a bank levy. Naples tax debt settlement lawyers at our firm can represent you in negotiations and build a strong case for you.

What Is a Bank Levy?

A bank levy is placed on a bank account, freezing it for a set period of time. Then, the creditor removes the funds from the account. A creditor can extract the entire value of the unpaid debt and any penalties and/or interest it has accrued. The IRS can place bank levies, as can consumer creditors. However, consumer creditors need court approval to place a levy.

In fiscal year 2023, the IRS assessed over $25.6 billion in taxes for returns that were not filed on time. The IRS filed 286,270 notices to third parties for levies. The IRS will not immediately implement a bank levy if you have unpaid debt. Instead, bank levies are used when a taxpayer has significant debt that they have not addressed, despite attempts by the IRS to recover payment.

If you received a letter of the IRS’s intent to levy your bank account or accounts, it is crucial that you take quick action. By getting in contact with an experienced bank levy and IRS attorney, you can get a professional opinion on your situation and the options you have to settle your debt. The Taxpayer Assistance Center Office closest to Naples is located in Fort Myers, at 4210 Metro Parkway. An attorney can help you navigate discussions with the IRS.

What Is the Process the IRS Uses to Levy a Bank Account?

Before implementing a bank levy, the IRS must usually prove the following:

1. The agency assessed the tax you owed, and it sent a bill demanding that payment.
2. You did not pay the tax.
3. The agency sent follow-up notices: a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing.
4. The agency sent you a preliminary Notice of Third-Party Contact before contacting a bank, employer, or other third-party entity involved in placing the levy.

The Final Notice of Intent to Levy must be sent 30 days before the levy is placed on your account. Once the levy is placed, the bank account will be frozen for 21 days before the funds will be removed.

During either of these waiting periods, it is important that you take action. The sooner you act to negotiate or pay back your debt, the better. An attorney can handle these negotiations. The IRS is open to negotiation and wants to assist taxpayers. In FY 2023, the IRS closed 222,996 cases of taxpayer assistance, aiding over 60 million taxpayers.

FAQs About Naples, FL Bank Levy Law

How Do I Get Rid of a Levy?

To quickly get rid of a levy, you should pay the relevant creditor the full debt you owe. If you cannot, then get in contact with the creditor to discuss other potential options to repay your debt, such as a payment plan. If the bank levy is placed by the IRS, you can reach other resolutions, including penalty abatement or an offer in compromise. You could even file for certain types of bankruptcy.

Can You Negotiate a Levy?

Yes, you could negotiate a levy, although it is much easier to do so with an experienced attorney. Negotiating a levy may be more successful with the IRS than with other creditors, but an attorney can explain the specifics of your situation. You might prevent the removal of the funds by entering into a payment plan or installment agreement, which can allow you to pay back the creditor in full over a longer period of time.

Can a Bank Levy Take All Your Money?

A bank levy could take all your money, depending on your financial situation and the amount of the debt you owe. When a creditor implements a bank levy, they can take the entire value of your debt, as well as penalties or interest, from the bank account. However, some types of income may be partially exempt. If the funds from one bank account do not satisfy this amount, the creditor could levy other bank accounts.

Can I Open a New Bank Account If I Have a Levy?

You can open a new bank account if your existing bank account has a levy on it. However, this does not fix the main issue of having a debt you haven’t paid. If the creditor learns of the new bank account, they can also place a levy on that account to recover any additional unpaid debt. It’s better to determine how you can negotiate and settle your debt to avoid the consequences of the bank levy.

Protecting Your Financial Interests in Naples

A bank levy can limit your financial ability in the short and long term. Fortunately, there are other options for you. The experienced team at TaxSmith, LLC, can review your financial circumstances and the debt you owe. We can then outline your options for resolving a bank levy and your tax debt. Addressing a bank levy quickly can limit the financial impact it may have on your life. Contact our firm today to schedule a consultation and learn what we can do for you.