What are the Differences Between an IRS Bank Levy and a Lien?

Friday, December 16, 2011
The IRS has a number of tools it uses in order to collect tax debts from delinquent taxpayers. Several of these tools are the IRS bank levy and the IRS tax lien. In any case, both of these IRS tactics should be avoided by anyone who has valuable assets they wish to protect. Seeking good legal representation is the first step if you’re coming close to either of these IRS collection actions. The IRS Bank Levy Collection Action For taxpayers who flagrantly neglect paying their filing or paying income taxes, the IRS has last measure tools to use to forcibly extract payment. But first, before an IRS bank levy can take place, the IRS has to send out warning notices. Such notices the IRS send out are— • The IRS Notice and Demand for Payment • The IRS Final Notice of Intent to Levy and Notice of your Right to a Hearing • The IRS Notice of Intent to Levy (for taxpayers who default on your Installment Agreement) • The IRS Final Notice Before Levy On Social Security Benefits Once the delinquent taxpayer receives any of the Final IRS Notices, he is given a window of 30 days before the actual IRS bank levy or any other levy takes place. Start by taking advantage of the no cost tax analysis and consultation with MyTaxAttorney by contacting them at 1-800-669-4775. The IRS bank levy begins by putting a complete freeze on any money sitting in the taxpayer’s bank accounts. The levy will continue for a period of 21 days before the bank is required to send the required amount to the IRS. The IRS will continue to issue new bank levies until the entire tax liability is satisfied. The taxpayer can still make deposits in his checking account for use at this time. However, the money that was initially frozen by the IRS cannot be used and is, as it were, gone. Therefore, the taxpayer, nor any creditors, is allowed to withdraw from the amount of money that is levied by the IRS until the IRS chooses to release the levy. In order to obtain an IRS bank levy release, it’s imperative to act quickly during the 21-day holding period. Resolving an IRS bank levy can be quickly done by contacting tax lawyers who specialize in IRS tax controversies, such as those at My Tax Attorney. The IRS Tax Lien Collection Action An IRS tax lien is a legal claim on any property owned by the delinquent taxpayer to be used as security for his back tax liability. As in an IRS bank levy, the IRS issues notices of warning to the delinquent taxpayer before issuing a lien, such as the Notice of Federal Tax Lien. The IRS follows similar procedures as for a bank levy, such as sending notices of warnings. However, once the Notice of Demand for Payment is issued by the IRS, the taxpayer only has 10 days to stop an IRS tax lien. How to Get Fast Relief You have the right to a hearing before the IRS and a possible appeal. When choosing to appeal the IRS decision against you, you’ll have to go before an IRS Appeals Officer and discuss your situation. Having an experienced lawyer from My Tax Attorney by your side will provide you with the reassurance that you will be get the results you hoped for and find a way out of your tax problems that satisfies you, as well as the IRS. IRS Resources – Bank Levy Visit irs.gov to find out more information regarding bank levies. Other sources, such as Wikipedia and Google online can offer more useful information. Also, try the local Beverly Hills Bar Association.