As with any bank levy the IRS or Franchise Tax Board (California) will at all costs look for ways not to cooperate with the struggling taxpayer.

A bank levy is a legal seizure of taxpayer’s bank funds for the purpose of paying on neglected or failed payment on back taxes owed. A bank levy is a onetime shot, never reoccurring.

Levy vs. Lien

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in. As per irs.gov.

Blindsided by bank levy

Blindsided by levies are never a good thing, however, the positive reaction is that it forces the taxpayer to actually address the State or IRS tax problem head on. The destruction of family finance cohesiveness will most certainly be tested by a bank levy, not to mention the additional bank fees and potential representation costs. Accounting for a one thousand dollar hit in the negative direction will most certainly make a “good” day one big “bad” day.

DWK Tax Group will not resolve the problem via this blog, therefore a call of necessity maybe in order. But with all of the money currently under seizure what do you do? Contact DWK Tax Group today @ 1 – 8 6 6 – 2 2 6 – 6 1 0 2. Once on board as a client DWK will supply a road map to address not only the levy but to fix the tax problem at the “core”.

Documents needed for a bank levy release had better be legible, clean and updated. Be prepared for a battle of attrition to save what funds are recoverable with the 21 day time frame.

NOTHING positive about owing on a back tax debt

In summary, the general public must understand…NOTHING positive comes from an existing tax liability. An unaddressed tax balance is accruing additional penalties and interest. Not good! The combination of penalties and interest can balloon to 47% per year on the original principle plus the penalties and interest. Not good!

The government entity looking to collect back taxes will ruin your credit report by issuing a public notice to the county recorder’s office of an outstanding tax lien. A tax lien is the government’s legal claim against your property when you neglect to pay a tax debt. A filed tax lien will most certainly affect your ability to acquire personal or business credit. FYI, a tax lien will also attach to business property including accounts receivables.