3 Ways to Stop an IRS Bank Levy

If you have been hit with an IRS bank levy you areyou entered into an installment agreement, an IRS
probably interested in some ways to stop it. Restprocedural error was made, the statute of limitations
assured, there are many ways to stop the levy. Thehas expired on the taxes owed or you want to
option you choose should be based upon your financialdiscuss different collection alternatives.
and tax situation. It is not an easy task to stop a bank3. File for an offer in compromise – With an offer in
levy so if you are not comfortable doing so, please hirecompromise you can settle your taxes owed for less
a tax relief professional.  Below are 3 ways to stopthan the total amount. If you file for an offer in
the levy.compromise the IRS will stop collection actions while
1. Setup a payment plan with the IRS – The IRS justthey review your filing. If the IRS thinks you are just
needs to ensure that they will receive the money thatsubmitting the offer as a stalling technique then they
is owed to them. If you can secure a payment planwill not stop collections. If your offer is accepted then
with the IRS you will be considered back into goodyou will be required to pay the reduced amount of
standing with them and they will no longer pursuetaxes owed and you will be considered in good
collections through the use of a bank levy. The moststanding with the IRS. If your offer is rejected the IRS
common form of payment plan is an installmentwill continue collection actions following their decision. If
agreement. With an installment agreement you canyou are considering this type of filing it is highly
pay back taxes owed in monthly increments over asuggested that you get the help of a tax professional
period up to 3 years. The IRS will not pursue any otherto handle the filing. This filing is tedious and time
collection mechanisms as long as you can stay up toconsuming.
date with your payments.When dealing with an IRS bank levy time is one thing
2. Appeal the tax levy – If you feel you shouldn’tthat is not on your side. It is important to act quickly in
have received the levy then there is a good chanceorder to stop the levy. The best thing you can do is to
you can appeal the levy and win. Some commonhire a tax professional with experience in dealing with
reasons to appeal a levy would be because you paidbank levies because they can quickly stop the levy
your taxes in full, you are going through bankruptcy,and buy time in order to settle your tax problems.