Getting in trouble with the IRS is something none of us want to be a part of. Issues with the IRS can lead to worse scenarios, and the repercussions can be bad. Bank levies are a result of the situation wherein you owe the IRS money and haven’t paid the dues in spite of several notices.
It might sound a little horrific, but it could happen to anyone at some point in time. The question that now comes is, what to do about it and how to proceed with bank levy release? Keep reading to figure out all about it!
Table of Contents
What Is An IRS Bank Levy, And How Does It Occur?
The IRS initiates the process by sending multiple emails or notices your way as warnings to let you know that you haven’t cleared your dues yet. These are the things that you shouldn’t be ignoring. The IRS also sends letters to inform you about putting bank levies on you. Do not ignore these.
Reasons why you can’t ignore bank levies
Bank levies are your cue to figure out the different kinds of payment options that are available for you. Rather than having to wonder about a bank levy release, consult tax experts and come up with the best possible solution.
Once you have gotten the letter from the IRS, you can choose to go for a hearing at the nearby IRS office. During this hearing, you get an opportunity to put forth your argument. Thus, it becomes important that you know what you need to say at the hearing. So, it’s better to get a clear understanding of it from one of the reliable tax resolution services on how to convince the authorities and avoid bank levies.
What can happen at the hearing?
You can bring up your argument strongly and talk about how a bank levy will put you in financial issues. This way, if the situations land up in your favor, you can successfully request for 30 more days to clear your dues. This means that rather than struggling with a bank levy release later, you could rather come up with an arrangement to take care of it.
Also, you can go for settling your account with the IRS altogether. Rather than doing it singly, seek help from tax experts who can represent you. This way, your chances of getting an extension are better.
How To Get Rid Of The IRS Bank Levies?
Once the IRS decides to put bank levies, it can become quite challenging to get rid of it. However, you can’t really give up and should try your best to get out of the situation at the earliest.
Below, you will find a few effective ways to get a bank levy release.
Send a letter to the IRS
One option that you can choose is to write up a letter and send it to the IRS. In this letter, you must explain the financial issues and hardships that the bank levies are creating for you. Be as descriptive as possible in the letter to let the IRS authority know the real troubles that you are going through because of it.
Along with the explanation, include the proof for the same as well. For instance, you could include your inability to cover for the expenses, paying rent for your home, etc.
It is always advisable to get in touch with top tax solutions services to help you out with it professionally. The services will be able to guide you through it in a better manner.
Given the proof of your financial hardships
The IRS is actually kind of sympathetic towards the individuals who have genuine issues in managing their finances because of the levy. Therefore, this could also be an effective way for a bank levy release.
You need to prove it first to let them understand your situation. Bring out the topic of how you barely had the budget to manage your living and where exactly your finances are utilized. Here are a few expenses that you could show proof for:
- Your rental agreement or mortgage documents.
- Daily groceries.
- Payment bills for the utilities.
- Medical expense records.
Working out an installment arrangement
This is another useful measure that you can consider taking to get yourself a bank levy release. You could ask the IRS to make an agreement stating that you will be paying your dues in installments. Paying a part of it each month is something that is much more manageable.
This amount is set as per the income that you have, keeping in mind your expenses for the month too. Also, the assets that you can liquidate are also in consideration here. The arrangement by the IRS, in this case, is an affordable solution. After this, however, you can’t afford to miss your installments, though.
Offering a lump sum to the IRS
At times, making an offer for a lump sum amount to clear off your dues always works with the IRS. Generally, the IRS can agree for a lump sum clearance if you are ready to pay off at least 80% of the amount you owe to it.
This lump sum is to be paid within 30 days of getting the permission for it form the IRS. If you fail to do so, it can again lead to a bank levy for you. So, seek help from a tax lawyer and come to a manageable agreement that you can hold up to.
Hiring A Professional To Help You Out
This is certainly one of the best ways to deal with and come up with the best-fit solution for a bank levy release. The professional tax experts have the experience and knowledge that is essential to come up with the method to get you out of a levy.
Rather than going through all the troubles and getting yourself in the worst issues, choose to involve one of the reliable tax resolution services. The experts at the agency can look into the matter more deeply and provide you with an ideal and manageable solution for it.
