Bank Levy
Tax Consultant / Accountant in NYC
Ultimate Tax Relief — which is based in New York City — offers its expertise and resources to people seeking tax relief and businesses in need of tax relief. The company also serves people who have fallen on hard times and owe taxes.
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt.
The Internal Revenue Code authorizes levies to collect delinquent tax. Any property or right to property that belongs to the taxpayer or on which there is a Federal tax lien can be levied, unless the IRC exempts the property from levy.
When the levy is on a bank, credit union or similar account, the Internal Revenue Code provides for a 21-day waiting period before the bank must comply with the levy. The waiting period allows the taxpayer time to contact the IRS and arrange to pay the tax or notify the IRS of errors in the levy.
Generally, IRS levies are delivered via U.S. mail. The date and time of delivery of the levy is the time when the levy is considered to have been made. This means funds in the account are frozen as of the date and time the levy is received. Normally, the levy does not affect funds deposited to the account after the date of the levy.
If a release of levy from the IRS is not received within 21 days of receipt of the levy, funds in the account as of the date and time the levy was received must be sent to the IRS.
