When The IRS Freezes Your Florida Bank Accounts: What You Can Do

There’s nothing quite as alarming as waking up to find your bank account has been frozen. The Internal Revenue Service (IRS) must provide advance notice, but it can still come as a surprise. One day, your accounts are easily accessible. Next, you are locked out and may not even understand why it happened.

This type of action, known as a bank levy, can feel like a financial ambush, but there are ways to fight back. With quick action and help from our experienced Florida tax-IRS attorney, you can limit the damage, release the funds, or stop the levy altogether.

Florida Bank Levies: When the IRS Seizes Funds For Tax Debts

Bank levies allow the Internal Revenue Service to seize funds for payment of back tax debts. Under IRS guidelines, a bank levy may occur only after the following:

• The IRS assesses your tax debt and sends a Notice and Demand for Payment.
• You fail to pay or otherwise resolve the tax debt.
• You receive a Final Notice of Intent to Levy/Notice of Your Right to a Hearing, which must be sent at least 30 days before the levy begins.

Once the IRS contacts your bank, the account gets frozen for 21 days. If the issue isn’t resolved within that timeframe, the bank must release the funds to the IRS. This brief window is your chance to act. Unfortunately, taxpayers often don’t realize the seriousness of the situation until it’s too late.

Owe Back Taxes? Steps to Take If Facing an IRS Bank Levy In Florida

The key to resolving a bank levy is to act quickly. You only have 21 days from when your bank receives the levy notice to take legal or administrative action.

If you owe back taxes or receive a bank levy notice, actions you can take to help prevent the IRS from freezing your accounts and seizing funds include:

• Request a Due Process hearing if you believe the levy was issued in error.
• Demonstrate financial hardship to request a levy release under IRS hardship guidelines.
• Explore tax repayment options, which include possible offers in compromise, negotiated installment agreements, or claiming ‘currently not collectible’ status.
• Contact our experienced Florida tax attorney immediately to assess your case, explain your options, and negotiate on your behalf with the IRS.

In some cases, we can negotiate a release of the levy and prevent future action while your tax issues get resolved.

To Protect Yourself Against Bank Levies, Contact Our Experienced Florida Tax-IRS Attorney Today

IRS bank levies can disrupt your entire life, preventing you from paying bills and providing for daily necessities.

As a licensed attorney, Certified Public Accountant, and former Special Agent for the FBI focusing on tax cases, Ronald Cutler has over 50 years of experience helping Florida clients in these cases. If you face a bank levy, don’t wait. Call or contact us online today to schedule a confidential consultation with our experienced Florida tax-IRS attorney.

Sources:

irs.gov/businesses/small-businesses-self-employed/levy

irs.gov/businesses/small-businesses-self-employed/information-about-bank-levies