At Pearson Butler, we have decades of experience serving individuals, businesses, and families across Utah in over a dozen practice areas. With more than thirty qualified legal professionals, we have the resources and experience needed to resolve even the most complex legal matters.
IRS Bank Levies
Turn to the Tax Lawyers at Pearson Butler
The Internal Revenue Service is one of the most powerful institutions in the world. The organization is responsible for collecting taxes from individual taxpayers and businesses. A business entity can get into trouble with the IRS for various reasons. Most new business owners are unaware of the laws surrounding payroll taxes. Some business may not know how to conduct proper withholding from employee paychecks. Businesses sometimes use funds that they should be sending to the IRS for operations, investments, and other purposes. The IRS has the right to collect its money by any means necessary. Unfortunately, sometimes the IRS will use a bank levy to do so.
Has your bank account been seized by the IRS? Fight back with a highly trained tax attorney at Pearson Butler. Call (800) 265-2314 today.
What Is a Bank Levy?
A bank levy or a tax levy is one of the most aggressive collection methods that exist. It involves the complete and total seizure of an individual or business taxpayer’s bank account. The funds in the account may contain investment profits, payroll funds, part-time job earnings, gifts, and more.
The IRS can take everything in an account no matter where the money came from. Banks cannot protect consumers or businesses when it comes to tax levies. Therefore, a business or individual must take steps to prevent the levy in the first place.
How to Prevent a Bank Levy
The best way to prevent a bank levy is by taking steps to resolve debt long before it reaches default status. The IRS gives a person notice immediately after it discovers the debt. The person has ample time to correct the mistake, which is why the organization’s recovery efforts are so aggressive when they occur. The consumer or business owner can directly contact the IRS and request a payment plan or installment agreement. The IRS is generally willing to accept installment arrangements, and the organization will not impose any garnishments or levies if the person sticks to the arrangement that he or she promised.
A person who owes the IRS money can contact a Utah tax attorney to help prevent a levy. The attorney can draft a formal installment agreement and have someone from the IRS sign it so that it stands correctly in court. Such a lawyer can include information that specifies the exclusion of bank levies if the taxpayer abides by the rules set forth in the agreement.
What to Do if You Receive a Notice of a Bank Levy
A consumer or business owner must act quickly if he or she receives a notice of a bank levy. Sometimes, the bank account is already frozen when the person receives the notice, and sometimes it is not. The person must immediately contact a tax attorney. The attorney can schedule a consultation as quickly as possible so that the prospective client can discuss the issue with him or her. An experienced attorney can develop the best plan for the consumer to recover his or her monies. A bank levy is a serious situation that can make or break one’s financial stability.
Contacting Pearson Butler in a timely fashion can save your finances from destruction. Call (800) 265-2314 today or contact the firm online to schedule your consultation.
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