Preventing Future Levies
If the IRS has put a levy on your bank account, then this is because you owe back taxes that you have not yet paid. For many people, a bank levy is a surprise, and they only know about it when the money in their bank accounts is frozen and inaccessible. This should not be a surprise, though, as the IRS is going to make several attempts to collect the taxes that you owe, unless you've reached the statute of limitations on tax debt, before taking this step. If you truly are surprised with a levy, then you need to contact a tax lawyer.
Before the IRS places a levy on you, you will be given some notice. If you do not respond, then your bank account will be levied. If this has happened to you, then you know how difficult it can be to get out from underneath one. The assets in your bank account are going to be frozen until you have paid off everything that you owe, or until you can make some agreeable arrangement with the IRS. It can take months and sometimes years to stop a levy, so you need to take measures to avoid this if you can.
How Levies Can Hurt
A bank levy on your account can really hurt you financially. If you have already had one, then you can truly know how much. You need to understand the full consequences of a levy, so that you can avoid them in the future. The first thing is that a bank levy is seriously going to limit what you can financially. You will not have access to the funds in your account, and you may not be able to pay all of your bills as you normally would. This can cause serious disturbances in your life.
A bank levy can also have a negative effect on your credit score. If you want to make sure that you are in a good position financially, then you need to avoid this at all costs. You will not be able to get other loans if you happen to need them, nor will you be able to get another credit card. This can make it really difficult for you to handle things like emergencies that might come up in life.
Work Something Out
If you seriously want to avoid another levy on your bank account by the IRS, then you need to be proactive about the matter and work something out. The IRS wants to get money that it is owed, so there will be some options for you to work out payment plans. It will cost you a fee to set up a payment plan, but this is really going to allow you to get things back on track with your finances. Look into this option so that you don't have to face another levy.
Another thing that you can do as far as preventing future levies is to make arrangements to pay off your debts to the IRS in full. If you can get the money together to do this, then you will not have to worry about a levy happening to you. Also, you can try to save up money throughout the year so that you can pay your taxes on time. If you don't pay your taxes late in the first place, then there is going to be no reason for the IRS to come after you and place such a levy on your account at all. Be responsible when it comes to what you owe, and you won't have anything to worry about.
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State Guides to Credit Card Laws
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