Pensacola Bank Levy Lawyer

Pensacola Bank Levy Attorney

Being notified of a bank levy can be very emotional and frustrating. You have time to take action; if you don’t, your account will be frozen and the money removed. This can cause severe financial difficulties. A Pensacola bank levy lawyer can examine your options for addressing the levy and determine how you can resolve your tax debt.

Bank levies can be placed by many creditors with court approval. The Internal Revenue Service (IRS) can place levies without asking the court first.

More than 21 million tax returns and other forms were filed with the IRS in Florida in the 2023 fiscal year. If you did not file your tax return or underpaid your tax obligation, you are assessed penalties. If you fail to pay the tax and penalties, those penalties and the interest will only grow as time passes. The IRS will eventually take collection actions, including implementing a bank levy.

TaxSmith, LLC: Addressing IRS Collection Actions in Pensacola

IRS collection actions include liens, wage garnishment, bank levies, and more. Bank levies are one of the most serious, as they can result in quick and significant financial loss. At TaxSmith, LLC, we have decades of legal experience in navigating the tax codes. We have supported many businesses and individual taxpayers throughout our communities.

Dealing with the IRS can be very stressful, especially in the face of financial loss. When you hire our firm, we work diligently to explore your options for addressing your tax debt. We can determine what fits your financial and personal situation. We can also represent you in dealings with the IRS, such as negotiations.

The Basics of a Bank Levy

A bank levy is an action the IRS and other creditors can take to remove the amount of your debt directly from your bank account. Prior to removing the funds, your bank account will be frozen for a period of time, preventing you from accessing any money to pay for you and your family’s needs.

A bank levy is not the first action the IRS will take. First, the agency will send notices of non-payment, requesting the unpaid tax debt as well as its penalties and interest. If you do not respond or refuse to pay the tax debt, then you could face collection actions, including a bank levy. You could also face a levy if you negotiated a payment plan with the IRS and then failed to follow through. The IRS is more likely to implement a bank levy if your debt is significant.

When you work with an experienced attorney, they can negotiate with the IRS and potentially avoid the consequences of a bank levy. The nearest Taxpayer Assistance Center is located in Pensacola, at 7180 9th Avenue North, about 6.2 miles from the center of Pensacola. An attorney can represent you in discussions with the IRS.

What Can You Do to Avoid a Bank Levy?

Settling your debt or avoiding debt in the first place is effective in preventing a bank levy. When you already have debt and cannot financially pay it, however, there are other options. Some potential options to negotiate an IRS bank levy include:

• Penalty abatement: If penalties were accrued and there was a reasonable cause for them, or you qualify for the first-time penalty abatement, you could have penalties and interest removed. This can significantly lower the debt you owe.
• Installment agreement: You can pay off the entirety of your tax debt over a longer period of time through this agreement. It is a useful option for those on a fixed monthly budget.
• Offer in compromise: This option settles your entire tax debt for a lesser amount. These can be difficult to get, but they are very useful if you qualify and are accepted. The IRS received 30,163 offers in compromise from taxpayers in the fiscal year 2023. 42.14% of those offers were accepted.

An attorney can guide you through these measures as well as other options, like bankruptcy.

How Is a Bank Levy Implemented?

The IRS uses a specific process to implement a levy. Generally, the agency will:

1. Assess your tax.
2. Send you a Notice of Nonpayment.
3. Determine what collection actions to take if you do not pay the tax.
4. Send you a Notice of Final Intent to Levy and Notice of Your Right to a Hearing.
5. Send you a Notice of Third-Party Contact.
6. Freeze your bank account approximately 30 days after sending the notices.
7. Removing the funds from your account after a 21-day waiting period.

The IRS can levy multiple accounts to collect the full debt if needed. During the waiting periods, you have to take action, or the funds in your account will be levied. An attorney can advise on the next steps.

Do You Need to Hire a Bank Levy Attorney in Pensacola?

It is incredibly beneficial to hire a bank levy attorney in Pensacola for IRS levy help. A levy by the IRS can be very serious, as the agency tends to take this extreme collection action when the debt is substantial. The support of a skilled legal representative can resolve the situation with fewer financial difficulties. An attorney can negotiate with the IRS, including by representing you at the IRS Taxpayer Assistance Center Office at 9th Avenue off I-10.

Negotiations with the IRS can consider options like a payment plan, called an installment agreement, to repay your debt over time. There are also possibilities like penalty abatement or an offer in compromise. Your attorney can see how bank levy laws apply to your case and what you might qualify for. The sooner you reach out to a lawyer to assess your tax debt and address a levy, the sooner they can resolve the situation.

FAQs About Pensacola, FL Bank Levy Law

Will a Payment Plan Stop a Levy?

A payment plan may stop a levy. If you get in contact with a creditor, you could negotiate alternatives to the bank levy. When the creditor is the IRS, the agency is willing to negotiate your tax debt payments if paying the full amount would create a financial hardship for you. In fiscal year 2023, the IRS assisted over 60 million taxpayers. Working with an experienced attorney is crucial for navigating these negotiations successfully.

How Long Does a Levy Stay on Your Bank Account?

A levy does not stay on your bank account for long. When it is removed, though, the funds in your account are also removed. If the levy was placed by the IRS, then you have 21 days from the date the levy becomes active. If you ignore the levy, then you will lose the funds in your bank account. If the money isn’t enough to cover your whole debt, you may face levies on other accounts or endure other collection actions.

What Is the Levy Fee?

A levy fee may be charged by your bank for the time and work of processing a creditor bank levy on your account. There is no set fee that all banks charge for this. Some banks may not charge anything. Discuss levy fees with your bank to learn their specific policies and fees. The amount of the levy itself will depend on the liability you owe, as well as any penalties or accumulated interest.

How Do You Fight a Bank Levy?

You can most efficiently fight a bank levy by paying the entire debt that you owe to the creditor who placed the levy. This will result in the release of the levy once the payment is processed. You could also fight the levy by negotiating with the creditor for an alternate way to pay back your debt, such as a payment plan over time, if you cannot pay the debt in full.

How Serious Is a Bank Levy?

A bank levy can be very serious, as it involves the removal of funds directly from your bank account, potentially all of your money. A creditor like the IRS could even levy multiple bank accounts. Before the funds are removed by the tax agency, your accounts are frozen, preventing you from using the money in them. All of this can cause immense financial hardship.

How Can You Get a Levy Removed From Your Bank Account?

The fastest way to get a levy removed from your bank account is to pay the debt you owe to the creditor that placed the levy. Once the payment is processed, the creditor should release the levy. If you don’t have the financial ability to pay the debt, you can reach out to the creditor to potentially negotiate the debt and your repayment options. An IRS levy can also be removed if you demonstrate that it causes financial hardship.

Does Florida Allow Bank Levies?

Yes, Florida allows bank levies, and tax agencies like the IRS or Florida DOR can use bank levies to recover unpaid taxes. Other creditors can also use bank levies to recover debt, but non-tax creditors usually must get court approval to place this levy. There are options in Florida to prevent certain collections for non-federal debt, such as the head of household exemption. This could protect a certain amount of your income.

Can You Dispute a Bank Levy?

It is possible to dispute a levy if you get in contact with the creditor that placed the levy, although it depends on the creditor and the unique circumstances of your debt. When a levy is placed by the IRS, you might get a levy released if you: 

• Pay the debt you owe.
• Negotiate for a payment plan or offer in compromise.
• Demonstrate that the levy puts you in financial hardship.

Dedicated and Straightforward Legal Counsel for a Bank Levy

The IRS is a government agency with a lot of power and resources. When you work with an attorney, you can better protect your rights and financial needs. It can be financially and personally stressful to deal with a bank levy, but TaxSmith, LLC, can navigate this situation. Contact our firm today to learn what we can do to help you with your tax liability.