Tampa Bank Levy Attorney

Tampa Bank Levy Attorney

Bank levies are a serious collection action that creditors, including the Internal Revenue Service (IRS), can take. If you do nothing to address it, a bank levy freezes your bank account and then removes all the funds needed to cover your unpaid debt, any penalties, and all accrued interest. This can put you in a very difficult financial situation. If you’ve received a notice of the IRS’s intent to levy your bank account, a Tampa bank levy lawyer can explore your options.

When you owe the Internal Revenue Service (IRS) unpaid taxes, the agency can take several collection actions to recover those funds. One of these actions is a bank levy, which could freeze your account and impact your ability to purchase goods and services for yourself and your family. The IRS and other creditors must follow a specific process to implement a bank levy. A Tampa IRS tax attorney can help navigate the complexities of a bank levy.

There are ways to negotiate a bank levy if you can’t pay the debt. You can find other methods of payment with the IRS, such as paying the debt over a longer period of time or settling the debt for less. An IRS tax attorney in Tampa can represent you and protect your interests.

Work With TaxSmith, LLC, in Tampa

For decades, the team at TaxSmith, LLC, has supported individual and business taxpayers throughout Tampa. We can help with numerous tax issues, including addressing IRS collection actions. These IRS tactics can prevent you from accessing your bank account, impact your credit, and prevent you from paying your bills. Our team can find options for addressing your tax debt.

There may be several ways to reduce your tax debt or give you more time to pay it back. By securing one of these resolution methods, you can prevent the severe consequences of a bank levy. We can review your financial situation to determine what you qualify for. Then, we can find the option that supports your financial future the most.

The attorneys at Tax Smith Tax Attorneys have decades of experience helping individual and business taxpayers with their tax debt issues, including resolving bank levies. We know how stressful an IRS collection action is for individuals and their families. We act quickly to understand your situation and determine the ideal method to resolve the levy and protect your finances. After managing a levy, we can address any remaining tax debt.

Understanding an IRS Bank Levy

A bank levy is a collection action the IRS uses to take the full tax liability you owe directly from your bank account. In fiscal year 2023, the IRS collected over $104.1 billion from unpaid assessments through additional taxes filed with returns. The agency assessed more than 38 million civil penalties and sent 286,270 notices to third parties to request levies.

The IRS doesn’t begin with a bank levy as a collection action. It is typically one of the last actions taken when notices, negotiations, and other collection actions have failed. Bank levies are more likely if a taxpayer has significant debt and attempts to contact a taxpayer and address the debt have failed. If a taxpayer in Tampa has not followed through on a payment plan or other negotiated settlement for their debt, the IRS may implement a levy.

Bank levies are not the first step in the IRS collection process. Typically, the IRS must do the following first:

1. Assess your tax, and send you a bill.
2. Determine that you have neglected or refused to pay the liability.
3. Sent you two notices, one of which is the Final Notice of Intent to Levy, 30 days before the levy is placed.
4. Provide you with a Notice of Third-Party Contact before contacting a bank or other entity to place the levy.

Unlike consumer creditors, the IRS does not need court approval to place a bank levy. After sending notice of the levy, a taxpayer’s bank account will be frozen. If the taxpayer does nothing during the period the account is frozen, then the IRS will remove the value of the entire debt, its tax penalties, and its interest.

Bank levies are typically only used when the unpaid tax is a significant amount and the IRS has tried to negotiate or get in contact with you without success. The IRS is open to negotiations if you do not have the financial ability to pay your tax debt or doing so would put you in financial hardship. There is a Taxpayer Assistance Center Office located in Tampa, at 3848 W. Columbus Drive. An attorney can represent you in discussions with the IRS.

Defending Against a Bank Levy

Once a bank levy is placed on your account, it is frozen, and you are unable to access the account. After a set period, the creditor will remove the funds necessary to cover your debt. If the debt is greater than the account, additional levies may be placed on other bank accounts. When you receive notice of a bank levy from the IRS, it is important to act and work with an attorney quickly. While a bank levy involves the seizure of funds, a tax lien places a claim on your property, which can also have serious financial consequences.

A bank levy can severely affect your day-to-day life. A frozen bank account can prevent you from paying your bills and necessary expenses. It is important to act as soon as you are provided notice. Tax Smith Tax Attorneys can determine creative solutions to minimize the effect of your tax debt.

Implementing a Bank Levy

The IRS must follow certain steps before implementing a bank levy, including:

• Providing you notice of the taxes, fees, and interest you owe
• Sending you a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing
• Assigning a third party to oversee your account during the implementation of the levy
• Upon failure to contact the IRS within a period of 30 days, a levy is placed on your bank
• 21 days after the levy order was placed, the bank account will be frozen, and necessary funds will be removed

Failure to act during the established time frames could result in the funds being taken from your account. If you receive a notice, speak with your tax attorney to review your options, which could include disputing the levy, appealing the decision, or negotiating other ways to pay back your debt. The sooner you begin working with an attorney, the earlier they can work to protect your finances. Knowing when to hire a tax attorney can make a significant difference in resolving complex tax issues like bank levies.

Do I Need an Experienced IRS Bank Levy Attorney?

If you have received notice of an impending bank levy, it is very helpful to work with an experienced IRS bank levy attorney to resolve it. The IRS has a lot of resources to secure unpaid taxes, and a bank levy is one of the more serious collection actions.

When you work with an attorney, you provide yourself with additional resources. An attorney can review what options you have to resolve your tax debt. They can help you respond to the levy notice and take action before your account is actually frozen or the funds are removed. If you cannot pay the tax debt off, an attorney can look into other options for negotiating the debt, such as payment plans or offers in compromise.

A bank levy attorney is experienced in negotiating with the IRS. They are also licensed to represent your interests and talk with the IRS on your behalf. You are more likely to obtain the most beneficial outcome for your case when you work with an attorney.

FAQs About Tampa, FL Bank Levy Law

Why Is There a Levy on My Bank Account?

A levy is placed on your bank account when you owe a debt to a creditor and have failed to respond to requests for payment. This creditor may be the IRS to collect on unpaid taxes. Regardless of whether the creditor is the IRS or a consumer creditor, they have to provide you with notice of the levy. A consumer creditor must also have court approval to place a levy. If there is a levy on your account, take immediate action.

How Can You Get a Levy Lifted?

The quickest way to get a levy lifted is to pay the debt you owe. When the payment is processed, the creditor will release the levy. If you cannot pay the debt, contact the creditor. It may be possible to negotiate other methods of payment, such as a payment plan. When the creditor is the IRS, there are several options for alternate payments, including penalty abatement, installment agreements, and offers in compromise. You can also file for bankruptcy.

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

A creditor could take all the money in your bank account. When a creditor has approval to implement a bank levy, the entire amount of your debt and any penalties or interest could be removed. This may be the entirety of your account, depending on your financial situation and the size of your debt. However, some types of income could be partially exempt. If the account does not cover the debt, the creditor may levy other accounts.

How Do I Protect My Bank Account From Creditors?

There are several methods of protecting your bank account from creditors, including:

1. Create an offshore account, which is subject to the jurisdiction of the country it is established. This can complicate the process for creditors.
2. Create accounts protected from consumer creditors, including a pension account.
3. Create an account in a U.S. state that limits collections by consumer creditors.

Many of these methods can protect you from consumer creditors, but they cannot prevent the IRS from collecting taxes.

How Do I Remove a Levy From My Bank Account?

You can remove a levy from your bank account most effectively by paying the debt in full, after which you and your attorney can contact the IRS or other creditor to pay the debt and have the levy released. Other options include allowing your tax attorney to negotiate the release of the levy through methods like a payment plan. A tax attorney can review the circumstances of your case to help find the option that is right for you.

What Is the Difference Between a Levy and a Lien?

The main difference between a levy and a lien is that a levy is the actual seizure of an asset or property, while a lien is a claim on the property. A lien states the intent to seize the asset but does not actually take the property. An IRS lien informs creditors of the government’s right to your property, which can affect your credit score. An IRS levy, commonly placed on a bank account, will remove funds from the account after a period to settle your debt.

Can the IRS Levy Your Bank Account?

Yes, the IRS can levy your bank account if you have unpaid taxes. A bank levy is typically not the first collection action the agency takes. Notices, liens on your property, and wage garnishment may be initial steps. However, if you refuse to cooperate with paying back your taxes, the IRS may take the funds directly from your accounts with a bank levy. Once a bank levy is placed, your account is frozen until you negotiate a settlement or the funds are removed.

Can You Negotiate a Bank Levy?

Yes, you can negotiate a bank levy before or after it is placed in your account. You can even negotiate a levy after the funds have been removed from your account and potentially have them returned to you. A levy may have been placed as a mistake, or you may be able to negotiate a payment plan. It is beneficial to act earlier in the process by contacting a skilled and knowledgeable tax attorney.

Address Your Bank Levy Quickly

A bank levy is a serious situation that can permanently affect your financial abilities. With the help of a skilled and exceptional attorney to navigate this process, you can avoid the challenges that bank levies could present to you and your family. Bank levies can restrict you from paying for your basic needs and then harm you financially in the long term. TaxSmith, LLC, can find creative solutions for your tax problems. The sooner you begin working with our team to address your tax debt, the faster we can protect you from IRS collection actions. Contact our firm today to schedule a consultation and see how we can help you.