The IRS notifies your bank and you of a bank levy with Form 8519, which is very similar in effect as the Form 668-A(c). The levy is not continuous and only affects the money in the bank on the day the levy arrives. Your bank will hold the money in a frozen escrow for 21 days before giving it to the IRS. So, you have some time to negotiate.
There are various reasons why your account has been levied so your approach to resolution will vary with the situation. In general, to get a release within the 21 days you must
- be current with your tax filings,
- disclose your financial situation &
- arrange an agreement with the IRS.
Each step in that process has traps and pitfalls to avoid. After you get the levy released, you still need to devise a plan for how you are going to reduce or eliminate this tax debt!
Usually, you must complete Form 433-A or Form 433F to disclose your income & assets to the IRS. This can be dangerous so please follow our TaxHelp Webinars to learn the tricks & traps of completing these forms!
Further Response to Form 8519
But, that's NOT the end of the case. We need to review all the facts & documentation & create a specialized, individual Action Plan to dissolve or diminish this debt. For more detailed information, please follow the Collections Prep Steps and contact Mr. Hopkins so he can prepare an Action Plan for you!