Tax Payment Options for an IRS Bank Levy

Wednesday, May 2, 2012

Once the IRS bank levy goes into effect or once you are notified of a potential IRS bank levy, you need to take action to pay off the back owed tax balance the IRS is collecting for. As a tax payer, you have multiple options that will help you avoid an IRS bank levy, but the most important thing is to take action immediately, since some of these options can take time to approve.

Offer in Compromise

This is one of the best options to stop an IRS bank levy. As a tax payer, you will need to get professional help when creating the offer, since it has specific requirements in terms of forms, income and offer percentage. The offer essentially allows you to pay off your tax balance at a discounted rate rather than paying full price, which can eliminate your tax balance entirely without having to pay the full amount.

Lump Sum IRS Payment

If you have received the IRS bank levy notification, you need to act fast. Sometimes, the offers and payment plans take time to work out with the IRS; therefore, you will need to just pay the balance in full. Making a one-time lump sum payment to the IRS will stop the IRS bank levy form going into action and you can do this by using a credit card, taking out a loan or borrowing the funds elsewhere.

Installment Agreements

Installment agreements for the IRS bank levy are essentially payment plans between you and the IRs. You will pick out a monthly payment, due date and make that payment. You need to realize, however, that you will collect penalties and interest – regardless if you are making payments. Therefore, try to pay as much as you can with each payment to avoid a larger balance at the end of the line. Also, remember that if you miss a payment, the IRS bank levy can go into effect and without notification to you since you broke your payment agreement.

Additional Options

If these three options are not something you are capable of doing, then you will need to contact a professional who can help with financial hardship or other statuses to stop an IRS bank levy. Make sure the professional you contact specifically deals with IRS issues and can help you resolve an IRS bank levy before it takes the funds from your account.

If you have an IRS bank levy notification, contact the professionals at My Tax Attorney today. At My Tax Attorney we specialize in IRS issues, including the IRS bank levy, which means we can help you resolve your tax debt and IRS bank levy situation quickly and effectively.

Need more information from the government and IRS about bank levies?  Check out what the IRS says about a bank levy.  Find out the difference between a bank levy and a federal tax lien.  For more information, read about the bank levy procedure from Wikipedia.  You can also find what your local state has to say about a tax levy by using your state and bank levy as a keyword to search Google.  You can also visit the local Beverly Hills Bar Association.