Bank Levy Release
State
Did you know the IRS and State Tax Authorities are the only creditors that can seize property without a court order? After a lien has been filed, the IRS can go into your bank account and take everything they believe is owed. Ideally you contact a competent tax advisor to assist you the minute you receive the first bill from the taxman. But sometimes those bills could be sent to an old address (or you may just not check the mail as often as you should), and just like that, all of your bank accounts are drained. If this has happened to you, please schedule a consultation or call us ASAP.
Questions?
The State sent a tax levy to my bank and captured all my funds without warning me first. How is that possible?
Just like the IRS, State Tax Authorities must have a debt assessed against you, request payment, and then provide some time to pay before they can begin to levy your bank account. However, it’s not unheard of that a state taxing authority believes notice was sent or sends a levy by mistake to your bank. Sometimes the bank processes a levy incorrectly, but more often than not you should have received notification in the mail if you do have a debt. So please contact us today if you think you may have been mistakenly levied by a State Tax Authority.
Do all states release bank levies?
No, unfortunately. While there are plenty of tax revenue agencies that do operate similarly to the IRS and have provisions for release of an erroneous levy, many states have less flexibility and options for relief. However, if you are experiencing a financial hardship as a result of a bank levy issued by the State, there is usually recourse for relief. If your bank captured funds from your account due to a state tax levy, please contact us for help today.
Can a State Tax Authority levy my bank account more than once?
Yes, the State can send numerous tax levies to your bank account, until the debt is paid in full. Whereas the IRS is a bit more focused on self-employed taxpayers and businesses that owe past due taxes, State Tax Authorities are more likely to send serial levies for taxpayers that owe them a substantial amount. Some states post lists of taxpayers with the most significant tax debts owed in their state—these taxpayers are more likely to see continual levies to their accounts until the debt is resolved. Please reach out if you are experiencing multiple levies from a State Tax Authority.