What to Do if an IRS Levy Keeps You From Paying Your Taxes

Written by admin on May 5th, 2011

An IRS levy will be imposed on a taxpayer who owes delinquent taxes. The person is then unable to access their frozen bank account to pay the back taxes, and there was not enough money in the account for the IRS to seize to pay off the debt. Having an experienced tax attorney will help you with the process of stopping or releasing the levy, allowing you to pay your back taxes.

Having the IRS Levy Released

If an IRS levy is preventing you from paying your delinquent taxes, a Collection Due Process hearing can be requested. This is a complicated procedure requiring the skill of a tax expert to ensure the most favorable outcome. Your tax attorney will help you prepare solid proof that:

You would pay the taxes if the bank levy were released.
You can show why a frozen bank account is preventing you from paying the taxes.
Your financial facts and reasons are believable.

The first intention of the IRS is to collect the full amount of the back taxes as quickly as possible. A tax professional is experienced in IRS negotiations and will guide you in presenting your case to your advantage. Consulting a professional tax service will give you the help you need to stop IRS levy collections.

The Burden of Proof Belongs to the Taxpayer

You must prove that even though you did not pay the taxes prior to the IRS levy, you will pay them once the levy is released. In order to do this effectively, you need a tax attorney to help you prove your case. The IRS is going to be skeptical.

You must be prepared to present the IRS with a repayment plan and explain how you are going to be able to adhere to that plan. You will also need compelling information regarding why you did not pay the tax debt in the past. The IRS will want to hear everything you can tell them in regards to the delinquent bill.


The committee will then consider your request for the dismissal of your IRS levy. They will weigh all of the evidence you have presented to them. They will determine if you are sincere in your intent to pay your back taxes once the levy is released. If they do believe you will pay the bill and get the full amount more quickly than they would with a levy, they will release it. When the levy is released, you will once again have access to your bank account. Keep in mind, the IRS can impose another levy if you fail to follow through with payment arrangements.

It is crucial at this point to have a tax professional help you negotiate an affordable payment agreement with the IRS. Your tax attorney can protect you from being pressured into an agreement you cannot keep. There also may be other settlement opportunities available of which you are unaware.

Once the Bank Levy is Lifted

As soon as the IRS levy is released, you must begin making the agreed-upon payments. If you fail to make a payment, the IRS will not be as forgiving the second time around. Each payment made on time is proof to the IRS that you intend to remain consistent and make all necessary payments. It is the only assurance your bank account is not frozen again.

Never believe you have no options, even if the IRS has taken action against you. A qualified tax attorney who understands tax law can help you stop an IRS levy, or work to have levies released. The assistance of a tax expert will help you avoid further IRS collection actions such as:

Liens on your property (house, car, boat)
Wage garnishment
Levies on retirement accounts, Social Security benefits

Let a tax professional bring your tax debt problems to resolution and restore your peace of mind.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply