By virtue of their administrative powers to enforce collection through levy action, the IRS can issue a bank levy to seize funds in any personal, business, or custodian deposit account. When served with a notice of an IRS Bank Levy, the financial institution is required to 'freeze' or exclude an amount up to tax liability stated on the notice, from the funds available to clear other transactions against the account.
Once the notice of an IRS Bank Levy is served upon the financial institution, the account holders' access to the funds on deposit is restricted to the amount in excess of the underlying tax liability. If the balance of the account on the date the levy is served, is less than or equal to the underlying tax liability, 100% of the account balance will be frozen. For a period of not less than 21 days, the levied funds may not be used to clear any debit, withdrawal, or payment activity, without first securing a bank levy release from the IRS.
Taxpayers without cash resources may not be able to meet their basic living expenses, incur added late payment fees, and overdraft charges as a result of declined transactions. This distressing financial scenario does not have to occur, and can be largely avoided with the RIGHT TAX PROFESSIONAL representing your interests.
Call the tax pros at Harris Tax and Financial Solutions to find out how quickly they can secure an IRS Bank Levy Release, and prevent your bank transactions from being compromised.