How to Handle a Bank Account Levied By the IRS

by My Bank Tracker

BY DEBBIE DRAGON

If you are a taxpayer who has not paid your taxes in full or at all, do not be surprised if the Internal Revenue Service has issued a levy on your bank account. This levy means the IRS has the ability to take funds from your bank account as payment for your balance due on your tax bill.

The IRS is one creditor you do not want to avoid. The government has the authority to get the money owed to them. This means they can legally take action against you, including taking funds from your bank account until your debt is paid in full. The IRS may also place liens against your personal property. Fighting the IRS is not easy so it is best to handle your matters proactively to avoid legal hassles and additional expenses.

Avoiding the levy

Prior to the actual levy being put into place and funds being withdrawn from your account, you will receive written notification of the process that is going to occur in advance. To confirm this notification, the IRS will send a certified letter to your home and if you wish to avoid this levy, you need to respond.

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