Levies are among the most destructive tools the Internal Revenue Service uses to collect what you owe them. A bank levy effectively freezes the available funds in your bank account. The IRS freezes the funds in your bank account often leaving you with no money. Your assets are then used to pay toward your outstanding tax debt. Any resulting unpaid checks or bank fees only add to your financial problems. Any account with your name on it may be at risk of a bank levy – even if the money isn’t yours. Financial institutions must comply with IRS requests or face severe penalties. Even if your paycheck is directly deposited into your account(s), you may not be able to access the funds.
A wage levy also known as a garnishment, presents similar challenges. In these situations, the Internal Revenue Service sends your employer a written notice requesting a portion of your pay as payment for your outstanding tax bill. Like banks, your employer must obey the IRS’s request or face legal punishment.
The IRS can exercise complete control of your existing and future assets. You need to know that if you are self-employed, your clients or customers will receive a demand for collection in what’s known as a “payor” levy. The payments they owe you are then sent to Internal Revenue Service. Bank and wage levies may allow the IRS to control every decision and financial move you make.
Your IRS wage garnishment remains in place until you pay your tax liability or until a levy release is negotiated.
Receiving a notice from the IRS of Intent to levy requires immediate attention. The Law Offices of Nick Nemeth, PLLC can help release a levy and in many cases resolve your IRS problems before a bank or wage levy begins.
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