Using a Writ of Execution for a Bank Levy
When the IRS wants to put or release a levy on your bank account, there are some legal steps that they need to take in order to do so. The first step that they will need to do is file for a writ of execution for a bank levy. This is going to be a legal document that will allow the sheriff to levy the bank for them and get their funds. Without this, the IRS will not be able to levy your account.
This important document that the IRS will have to file is going to contain a lot of information on it. It's going to state how much money that you owe to the IRS, what kinds of costs that the IRS has incurred as a means of trying to collect the back taxes, as well as how much interest and penalties are owed as well. The bank will then use this information when it comes time to empty money out of your account and pay it to the IRS. If you don't have enough in your account, then all deposits that go into it will be used to pay your back taxes.
Avoiding a Bank Levy
If you don't want the IRS to use a writ of execution in order to obtain the funds in your bank account, then you are going to need to take measures to avoid this from happening in the first place. The first thing that you should do is try to file and pay your taxes on time. Even if you can't pay everything you owe at once, you should still file your taxes on time. You may be able to work out a payment plan for a fee, and this can allow you to avoid a bank levy.
You also have some other options for avoiding a bank levy. One such option is for you to file for bankruptcy. When you do this, then this is going to relieve you of your tax debts. Sometimes, it's the only financial solution for people, but it may not end up being the right thing for you. For one thing, it's going to have a really bad effect on your credit score. You may not be able to get loans for some time and if you do you might have to pay high interest rates. However, it is much better than going through a bank levy.
Another option that you have for avoiding a bank levy is making the IRS an Offer in Compromise. This is when you make an offer to the IRS to pay off a large portion of your debt, and then the rest is settled. If you are going to do this to avoid a bank levy, you'll need to come up with a number this is going to be sufficient. Offering too little could mean that your offer is rejected, so you'll need to think about this carefully first.
Consult a Skilled Attorney
If you don't pay the back taxes that you owe, the IRS will proceed with using a writ of execution for a bank levy. When this happens, you will be left in an embarrassing and difficult situation. If you want to make sure that this doesn't happen to you, you may want to consult a lawyer to help you deal with your tax debt. It can be a bit complicated to come up with a solution that will satisfy the IRS, and a tax attorney can help you through these confusing times and get back on track.
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