Orlando Bank Levy Attorney

Orlando Bank Levy Lawyer

Bank levies are stressful, as they can severely stunt your ability to financially provide for yourself and your family. Even before funds are removed from the account, you are unable to access them. It can be especially stressful when the levy is placed by the Internal Revenue Service (IRS). If you have received notice of a levy, it is crucial that you contact an Orlando bank levy lawyer quickly. They can address your tax debt and limit the consequences of the bank levy.

When you work with a reliable IRS tax lawyer, you can better protect your financial future.

A bank levy freezes your bank account and prevents you from accessing the funds within it. It can be placed by any creditor, including the IRS. This can be an incredibly distressing situation, but it’s important to know you have options. An Orlando bank levy attorney can help if you have received a notice about the IRS’s intent to levy your account or if the levy has already happened. An attorney can negotiate with the IRS on your behalf and potentially aid you in avoiding serious financial consequences. Working with a seasoned Orlando tax attorney who handles IRS enforcement actions can give you the best chance at protecting your assets.

TaxSmith, LLC: Experienced Bank Levy Attorneys

At TaxSmith, LLC, we have worked in tax law for decades. Our firm can help you, whether you are an individual or a business taxpayer. By reviewing the specifics of your tax debt and bank levy, we can determine whether the levy applies to a valid debt. Then, we can explore options to negotiate the debt with the IRS. A bank levy is one of the most serious IRS collection tactics, and it should be taken seriously. You still have options, however, and our team can find them.

When you work with TaxSmith, LLC, you work directly with our attorneys, so you can secure experienced and straightforward legal guidance immediately.

The Basics of a Bank Levy

A bank levy is used by creditors to recover unpaid debts. After a notice of a levy, your bank account is frozen. After a set period of time, the funds needed to cover your debts are removed from your account. Depending on the size of your debt, a creditor may levy multiple bank accounts. Most creditors are allowed to use this tool, although they are typically required to get court approval. The IRS does not need this approval.

A bank levy is generally one of the last steps the IRS takes to try to recover unpaid tax debts. If you have tax liability, you will receive many notices from the IRS regarding that debt. You may also see other collection actions, such as a lien or garnishment. A bank levy is the agency’s final step when nothing else has been successful, and attempts to contact you have been ignored. It may also place a bank levy if you had a negotiated payment plan and failed to follow through.

When the IRS decides to levy your account, it will mail you a notice of its intent to levy. You have a short period of time in which to get in contact with the IRS. Soon after you receive this notice, your bank will freeze your account, and the IRS will remove the needed money from the bank account after another set period. This includes the entire amount of your debt, its penalties, and all accrued interest.

It’s important to take steps before the funds are removed. If you have tax debt in Orlando, the nearest Taxpayer Assistance Center is located in Orlando, at 201 S. Orange Avenue, in Suite #1118.

What Is an IRS Bank Levy?

A bank levy is a measure that can be taken by various creditors, including governmental, consumer, and private entities. Unlike many other creditors, the IRS doesn’t need court approval to initiate a levy. However, it’s important to note that the IRS typically doesn’t resort to a bank levy as the first course of action when a taxpayer has outstanding taxes. The IRS usually issues notices about unpaid debt and may take other, less drastic measures. A bank levy is only implemented for substantial debt that a taxpayer has failed to address.

When the IRS places a levy, the bank account is frozen for a set period of time. If a taxpayer does not take any steps to negotiate with the IRS or pay back the debt, the IRS will remove the amount of the debt, interest, and other penalties from the bank account.

The Process of a Bank Levy

The following must typically occur before the IRS will implement a bank levy:

1. The IRS has sent you a notice of the taxes you owe, including any applicable fees and interest. The IRS is not required to prove you received this notice, only that it sent it.
2. You either refused to pay the requested tax debt or failed to do so.
3. The IRS provided you with two follow-up notices: a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. These notices must be provided 30 days before the levy is initiated.
4. You will receive notice of Third Party Contact when the IRS must contact a bank, employer, or other third party regarding the placement of the levy to collect on tax debt.

After these steps, the levy order will be placed on the account. A bank or other financial institution is required to comply with a court-ordered or IRS bank levy. During this time, the account is frozen, and in a period of time, the funds will be removed. Once the IRS places the levy, this period of time is typically 21 days.

A levy is not only limited to a single bank account. Levies can be placed on any bank account or property that you own. If one bank account does not cover the entirety of your debt after the assets are seized, the IRS may place a levy on other accounts or assets. Bank levies often go hand-in-hand with tax liens, which can further complicate your financial situation. Understanding how tax liens work and how to address them is a critical step in resolving IRS actions.

If you have received the Notice of Intent to Levy in Orlando or in other areas of Florida, you should act quickly before the levy is placed. It is even more urgent if the levy has been placed and your assets have not yet been seized. The earlier in the process that you begin working with a tax attorney, the more straightforward and less impactful negotiations may be.

How Can You Address a Bank Levy?

It’s important that you act quickly to address a bank levy. In 2022, there were more than 11 million individual and income tax returns filed in Florida, compared to 159 million in all states. The IRS is willing to negotiate and works to help taxpayers. In the 2023 fiscal year, the IRS assisted nearly 60.3 million taxpayers. If you do not have the financial ability to pay back your entire tax debt immediately, you could negotiate other options.

There are alternate methods to settle your tax debt, including erasing penalties through penalty abatement, negotiating an installment agreement, or creating a payment plan. In rare cases, you might even negotiate an offer in compromise, which clears your tax liability for a lesser amount. An experienced attorney can determine what options you have for your financial situation and negotiate with the IRS.

FAQs About Orlando, FL Bank Levy Law

How Do I Remove a Levy From My Bank Account?

The most efficient way to remove a levy from your bank account is to pay off the debt which the bank levy is for. You can contact the IRS or other creditor to pay back the debt in full or negotiate another way to release the levy. This may include alternate payment options such as a payment plan or an offer in compromise, if applicable. In some cases, taxpayers may qualify for an Offer in Compromise, which allows them to settle their tax debt for less than the full amount owed. This can be a viable option if you’re struggling to pay your debt in full. You can also file for bankruptcy to remove a levy from your bank account. If it is an IRS levy, a tax attorney can help.

How Long Does a Bank Hold a Levy?

For most debts, a bank holds a levy for 21 days. When you receive notice from the IRS that a bank levy was placed on your account, you have 21 days from the date of receiving this notice in which the levy is in effect but on hold. If you have taken no action after this period of time, then the IRS will remove the funds necessary to pay your back taxes from the account. If there is not enough, the IRS may levy other bank accounts.

Can I Deposit Money After a Bank Levy?

Yes, you can deposit money into a bank account that has been levied. The IRS does not typically take funds deposited after the creation of the levy. The funds in the bank account are frozen when the levy is created and will only be available if you negotiate the removal of the levy or if the IRS takes the funds from your account needed to cover your debt. If you do not know how to negotiate the levy, speak with a knowledgeable tax attorney.

How Do I Find Out Who Levied My Bank Account?

When a creditor levies your account, they must provide you with a Notice of Intent to Levy. If you did not receive this notice, you could ask your bank to provide you with a copy of the request that it received to place the levy on your account or accounts. Most creditors must request court approval to place a levy, but for tax debt and certain other debts, court approval is unnecessary. If the court approves the levy, then you can get information about the creditor from the court.

How Do I Get My Bank Levy Lifted?

The most effective way to get your bank levy lifted is to pay back the debts that the levy is for. If that isn’t a financial possibility, you could negotiate with the creditor that placed the levy. When the levy is placed because of tax debt by the IRS, you have options. The agency is willing to negotiate with those who cannot pay back their tax debts. You could negotiate a payment plan to pay your debt.

How Long Does It Take to Release a Bank Levy?

It may take up to 30 days for the IRS to release a bank levy if you have negotiated an alternate payment plan or paid your debt in full. If you do not take any steps to discuss your tax debt with the IRS and ignore the bank levy, it will not be released. Instead, after 21 days from the date you receive notice of the IRS’s intent to levy, the agency will remove the necessary funds.

Can a Bank Charge a Levy Fee?

Yes, a bank could charge a levy fee for processing the levy. Not all banks charge this fee, but many do. It takes work to process a levy, whether it is placed by the IRS or another creditor. This can add to the financial difficulties you are already facing. If you were charged a processing fee by your bank but the levy was wrongfully placed by the IRS, you could request reimbursement.

Can You Negotiate a Bank Levy?

Yes, you can negotiate a bank levy. It is important to do this during or before the waiting period for the levy. While it is possible to negotiate the return of the funds after they are levied, it is harder. Working with an IRS attorney in Orlando is exceptionally useful for negotiating a beneficial payment plan, a reduced levy, or another option to repay your debt to the IRS. Find an attorney if you have received notice of intent to levy.

Working With Dedicated Attorneys to Address Your Tax Debt

Ignoring letters from the IRS is unhelpful and likely to only worsen your situation. If you have received notice of the agency’s intent to levy or are otherwise dealing with tax debt you can’t repay, contact TaxSmith, LLC. Our firm can ease your stress and talk through the options you have.