Receiving a Bank Levy Notification
If you have not paid your taxes or other debts that you owe to the government, then you may face what is called a bank levy, in which case you should ask about bank levy choices. When the IRS calls for a bank levy, all of the funds in your bank account are going to be frozen. Once these assets are frozen, you will not be able to use the money in your account. After 21 days, the bank will release the funds to the IRS in order to pay off your debt. If you owe more than is in your account, then your deposits will all be levied as well.
Getting a bank levy notification in the mail is something that may come as a surprise to you. However, if you've been paying attention to your mail, this should not come as a shock. If you owe money to the IRS, then you are going to get a notice of what you owe to them. If you don't respond to them or make payment, then you are going to receive a final notice and an intent to levy your bank account. If you still do nothing within 30 days, then you will probably experience a bank levy.
Avoiding a Bank Levy
The best thing that you can do for your financial situation is to make sure that you do not experience a bank levy. This can have a really negative effect on your credit score, so it's something to be avoided at all costs. One thing that you can do to help avoid this is try to make arrangements with the IRS to pay your debts when you actually file your taxes. If you can make these arrangements then, then you will not have to worry about this.
When you attempt to work with the IRS, you are going to have a couple of different options that you can work with. One popular option that many people go with is a payment plan. When you choose this option, the IRS will allow you to break up what you owe into monthly payments. This can be a really great option for those who are on a tight budget and have other obligations that they must handle every month. There will be a fee for setting this up, but it can definitely be worth it in the end.
Another way that you can handle your debt with the IRS is to agree to a partial payment installation agreement. This is similar to making a repayment plan, but it means that you don't have to pay back all of the debt that you owe to the IRS. This can be a great relief to a lot of people, as it means that you will be able to get rid of some of your debt and keep more money in your pocket. You will need to set up an agreement with the IRS and then make sure that you can stick to it.
Contacting a Lawyer
If you believe that you are receiving a bank levy notification in error and that you did not receive proper notification of your debts, then you may be able to fight the levy on your account. You may want to get some legal advice on the issue or you may want to speak with a tax professional who has some experience in dealing with these kinds of issues. You never just want to accept a bank levy if you feel that is has been put upon you in error, and you will have a right to fight it.
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State Guides to Credit Card Laws
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