Your personal or business banking account can be subject to levy with something as simple as a Final Notice of Intent to Levy, referred to as a Letter 1058, which happens to be the only document the Internal Revenue Service needs to issue in order to mandate banks to withdraw money from an account. A large amount of tax debt makes individuals and companies subject to IRS investigation, while they may not even be aware the IRS is seeking payment, until it becomes too late.
“It’s interesting to note that the IRS only has to prove that they sent that letter to your last known address,” states Michael Penn, CEO of Ellis PENN. Individuals and companies with a history of unfiled tax returns are likely to have different or multiple addresses, thus increasing the chance of not receiving this essential communication from the IRS. Ignorance is no excuse.
Taxpayers do have rights. Major disputes and tax issues can be handled with the right arsenal of information and knowledge provided by trained professionals. When faced with an imposed bank levy, as obvious as it seems, it may not occur to you to that it is best to keep very little money in the bank. Michael Ellis has seen many situations where bank accounts are completely depleted of major funds due to the timing of deposits and processing dates. While timing is everything for the IRS, taxpayers often rely on luck or avoidance. However, there are more efficient and effective ways to protect monies and assets.
Bank levies are one-time levies, not to be confused with continuous levies or garnishments. It is important to note exactly what you are dealing with in order to choose the correct course of action. Knowledge of IRS terminology, as well as the meaning of their notices and letters is important in protecting your money and assets. Ellis says, “time and again, the IRS has improperly levied accounts without giving Final Notice of Intent to Levy and in many cases it’s relatively easy to raise the levy.” Some levies can be appealed using IRS form 12153. Installment agreements can also be set up as another collection alternative.
The key to fighting a battle with the IRS as mentioned here is to have your records in line, increase your awareness and knowledge of your rights and in most cases, seek professional assistance to help win your case.
Your IRS Tax Specialist