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IRS Bank Levy Release- Know the Ways to Get Your Money Back

30th November 2009
By Samlee in Taxes
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IRS levies your bank account when you fail to pay your tax on time. According to the US Code, if any person neglects or refuses to pay the due tax within 10 days after notice and demand, the Internal Revenue Service (IRS) under the United States Federal Law has the authority to claim the tax by posing levy upon all property and rights to property belonging to such person without court permission. However, IRS follows certain rules before levying your account. After the Fifth Amendment of the US Constitution, today the person charged for non-payment of tax gets 21 days to protect his/her account, and justify the reason of non-payment of tax.

For a person who has received a notice from the IRS, these 21 days are the only days when he/she can fight to save the account from levying. However, convincing the IRS for IRS bank levy release can be the most difficult job for an inexperienced person. So, in this article, some important steps have been discussed which are tested and proved as successful at most of the time in terms of IRS bank levy release. Yet, it is highly recommended that you shall apply only that step, which you find is most convenient and applicable for you.

Steps to IRS Bank Levy Release:

1. Make One Time Payment of Tax to IRS:
If you are looking for a ‘one and all' time solution for the problem, then making the full payment of tax is the best suitable decision for you. However, if the due amount is large, full payment of that amount may become difficult for you. Borrowing money from friends, selling valuable items from house or mortgaging own house can save you in this case.

2. Project Poor Condition of Finance to Get IRS Bank Levy Release:
If you are going through a poor financial condition, admitting that also can help you to get the IRS bank levy release . In that case, you have to present valid proofs of your ailing financial condition within the 21 days of time.

3. OIC (Offer in Compromise):
OIC is an exclusive kind of program, which is there for a very limited number of people. People who are truly unable to pay their tax, IRS at times exempt their tax. Though many people file their request for OIC approval, yet very few people get the benefit of this program, as IRS remains very strict in terms of exempting the tax.

4. Go for Installment Payment Mode:
If you are not a delinquent taxpayer or if you do not have a defaulting payment history, IRS can consider your proposal of installment payment of the tax amount. In that case, you have to prove your incapability to make a onetime payment of the entire amount. If the IRS accepts your request, you can get the IRS bank levy release.

Remember that only a professional and experienced tax consultant can help you through this situation and get your IRS bank levy release. Hence, whatever step you find the most suitable for you, do not forget to discuss it with your tax consultant.
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