If you have been hit with an IRS bank levy you are probably interested in some ways to stop it. Rest assured, there are many ways to stop the levy. The option you choose should be based upon your financial and tax situation. It is not an easy task to stop a bank levy so if you are not comfortable doing so, please hire a tax relief professional.  Below are 3 ways to stop the levy.

1. Setup a payment plan with the IRS – The IRS just needs to ensure that they will receive the money that is owed to them. If you can secure a payment plan with the IRS you will be considered back into good standing with them and they will no longer pursue collections through the use of a bank levy. The most common form of payment plan is an installment agreement. With an installment agreement you can pay back taxes owed in monthly increments over a period up to 3 years. The IRS will not pursue any other collection mechanisms as long as you can stay up to date with your payments.
2. Appeal the tax levy – If you feel you shouldn’t have received the levy then there is a good chance you can appeal the levy and win. Some common reasons to appeal a levy would be because you paid your taxes in full, you are going through bankruptcy, you entered into an installment agreement, an IRS procedural error was made, the statute of limitations has expired on the taxes owed or you want to discuss different collection alternatives.
3. File for an offer in compromise – With an offer in compromise you can settle your taxes owed for less than the total amount. If you file for an offer in compromise the IRS will stop collection actions while they review your filing. If the IRS thinks you are just submitting the offer as a stalling technique then they will not stop collections. If your offer is accepted then you will be required to pay the reduced amount of taxes owed and you will be considered in good standing with the IRS. If your offer is rejected the IRS will continue collection actions following their decision. If you are considering this type of filing it is highly suggested that you get the help of a tax professional to handle the filing. This filing is tedious and time consuming.

When dealing with an IRS bank levy time is one thing that is not on your side. It is important to act quickly in order to stop the levy. The best thing you can do is to hire a tax professional with experience in dealing with bank levies because they can quickly stop the levy and buy time in order to settle your tax problems.

Need IRS bank levy help? We can help. Our tax professionals are experts at handling bank levies and can quickly find the best solution for your particular situation.

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