Legal Question in Tax Law in Texas

Re: tax levies

In answer to your question �what happens when the IRS puts a levy on your bank account,� and presumably what you can do to either prevent this action or to respond if it has already happened, you should look at two IRS Publications, (Pub. 594 -- What You Should Know About the IRS Collection Process; and Pub. 1660 � Collection Appeal Rights), both of which are available free from the IRS on its website (www.irs.gov/formspubs/lists/0,,id=97819,00.html), or from the tax website UncleFed.com (http://www.unclefed.com/IRS-Forms/index.html). You might also want to look at my article on the expanded opportunities to appeal IRS collection actions (after the 1998 IRS Restructuring and Reform Act). The article is posted in the authors� row section of unclefed.com (http://www.unclefed.com/AuthorsRow/index.html).

Levies are usually served by the IRS only when the taxpayer has failed to respond to numerous IRS notices and to other efforts to convince the taxpayer to make other arrangements for the payment or compromise of the tax liability. And the IRS will release levies if the taxpayer gets into current compliance and honestly pursues other approaches to resolving the tax debt, such as filing an offer in compromise or requesting an installment agreement. It is also possible to get a release by seeking relief from the Office of the Taxpayer Advocate by filing a �Request for Taxpayer Assistance Order� (IRS Form 911) and explaining the hardship that would result if the levy were to be enforced. If all else fails, and if it is appropriate under the circumstances (a very complex determination), the filing of a bankruptcy petition under Chapter 7 or Chapter 13 will also result in the release of levies. Furthermore, if the various Bankruptcy Code requirements are met, a bankruptcy could also result in the discharge of certain tax debts.

Good luck.

Re: tax levies

unless you take action, they take all money.

Joel Selik

www.taxworkout.com

800-894-2889