If you’ve received an IRS notice saying that they intend to levy your bank accounts if you don’t pay up in 30 days, then it’s time to pay attention. Before the IRS actually issues a levy notice, they’ve usually made a few attempts at contacting you and trying to get a payment. If you’ve received an IRS levy notice, it means that the IRS hasn’t heard from you—they think you’ve been blowing them off (which in many cases is true). If you ignore the levy notice, they’ll just take your money and the law is on their side so you need to act now.
First, the responsible thing is to call them, or hire someone to deal with them for you. (I personally think that if you’ve reached this point, it’s best to hire someone—but remember, I do this for a living, so note that I’m biased.)
There are things you can do to prevent the IRS from going through with the levy. Let’s assume that you really do owe the money:
1. You can set up a payment arrangement–you pay off the IRS on a monthly bill schedule
2.Your situation might qualify you for an offer in compromise (the pennies on the dollar thing you see in TV commercials), or
3. Maybe you’re going through hard times and need to be put into the currently uncollectable status—you still owe, but the IRS quits hounding you until you get a job or your situation changes.
But maybe you don’t really owe the money. That’s the big kicker for me. Usually, if you’re getting IRS levy notices, you do owe them money—or at least part of it, but I have seen several cases where my clients don’t owe the IRS anything! A couple of times I have even gotten them refunds instead. If you didn’t do your taxes, and the IRS did them for you, don’t assume that the IRS did them right. When the IRS does your taxes for you, they automatically put you in the highest tax bracket they can justify and you get no deductions or tax credits that you might have qualified for. (Here’s a hint: if you’ve got kids, the IRS probably did your taxes wrong.) Even if you find that you don’t owe the IRS money—you still have to contact them, let them know the situation, and then you’re going to have to provide proof. Usually your proof is your corrected tax return.
Dealing with the IRS is the best way to get yourself out of levy trouble. But here are a few things that you also might want to consider doing while the threat of a levy is still hanging over your head:
1. Make sure your name is taken off of your kids’ and/or parents’ bank accounts. If you’re on someone else’s bank account, the IRS can and will levy that account too.
2. Don’t keep large amounts in your bank accounts. If you’ve got lots of cash, then maybe you can just pay your debt. But usually, this isn’t an option for most people. If your paycheck is going direct deposit into your bank account, get the money out immediately. You can put your cash onto a prepaid Visa debit card. Once the levy is in place, the IRS can only take the funds that are in your account at the time of the levy, if you get another deposit, that money is accessible. Transfer money in only as you need to make payments out of the account.
IRS levies are serious business. Don’t make the mistake of ignoring them.
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Hello, thank you for your website! It has been very informative.
I currently owe the irs from 2009 return (1800) and they sent me a letter stating to pay in full in 10 days or they would pursue options against me. I currently have no bank accounts in my name. Everything is in my wife name, my job direct deposits directly into her account. The house is in her name as well. The only thing in my name is a truck of which i owe like 16k on still. (they can have it lol)
can they touch my wife bank acct if my direct deposit goes to it, although my name isn’t on account?
2nd issue
This years fax return i owed 7k, hopefully this will be included in the 1800 wage garnishment. We have 1k of the 1800 already, and we are hoping to save up one more month to gather the 800 to pay 2009 return in full.
Hi Tom (post 95, sorry I’m out of order),
Um yes. Yes the IRS can. Ouch! It’s on page 6 of this publication: http://www.irs.gov/pub/irs-pdf/p594.pdf
Basically it says that they can levy your income and they only have to notify you once, and they don’t have to notify you again. They can just do it.
Why does the IRS do this? To get your attention. (Worked didn’t it?)
You owe them $50,000. You didn’t call, you didn’t write. They confiscated your money. You still didn’t call, you didn’t write so they’re going to do it again.
Think of the IRS as a really bad ex-girlfriend. You know, the Carrie Underwood song “Before He Cheats”? That’s how the IRS sees you.
I’m guessing that your $50,000 is payroll tax withholding? If so, that’s even worse. They are pretty intense over payroll tax withholding.
So what should you do? Call them! Make nice. Find a way to get the debt taken care of. Many years ago (long before I went into the tax business) I went to work one day to find that the doors to the company I worked for were padlocked shut. My boss hadn’t paid our payroll withholding and the IRS shut us down.
Call them (or get representation to call them for you) but don’t ignore this.
Oh, if you don’t know the song I was referring to, here’s a link: https://www.youtube.com/watch?v=aBuLhwXPJls&noredirect=1
Hi Daniel,
A couple of thoughts here. First–terminology. The words can be confusing.
If the IRS has a lien on you–that means if you get a refund on your taxes they can take it. If you sell your house, they can take the tax debt before you get the rest of the money. That’s a lien.
A levy is then they tell your bank “We’re owed this much money by Daniel and we’re sucking it out of his bank account.” (Okay, they don’t say that exactly, but that’s what they mean.
If your paycheck is being garnished, that’s a kind of a levy also.
So–if there is a lien–you’re fine to deposit your check. The IRS isn’t going to touch that.
If they have already levied your account–then the money that was in the bank at the time they put the levy on will be taken, but additional funds will not be taken, so you may deposit your check.
But if–AND THIS PART IS IMPORTANT–if the IRS sent you a letter threatening to levy your account–then your settlement check could be in jeopardy. That’s why knowing exactly which words they used are important.
Now–if the IRS is threatening to levy–you can talk to them, work out some sort of payment arrangement and they will call the dogs off. That’s probably your best option.
If you really can’t pay them and can’t be put on their “currently uncollectable” status, then I would cash the check and put all the money onto a prepaid debit card. (I know, that sounds a little slimey, but if you’re desperate you do what you gotta do for now.)
But if it’s at all possible to work something out with the IRS, that really is your best bet in the long run. Good luck.
I just received a settlement check from my divorce and I have a tax lien. If I call the FTB and make arrangements to pay them monthly and inform them of my check will they still take it when I deposit it? It’s the only income I have left and I am afraid they will take it all. What is your advice on what I should do
I’m not sure if you deal with company tax issues? We owe the irs $50,000 and they sent a letter to one of our customers to pay the irs on our behalf instead of paying us. That company paid $12000 to the irs. Now the irs called them and said to not pay us until he okays it because the debt is not paid off yet. Can they just call and tell my customer that? i would think they need to send a letter for every request.
If you set up payment arrangements with the IRS after the levy, will they still take money from your bank account?
Hi Rick,
You’re still not getting threatening notices from the IRS, I’m thinking you’re okay. You might want to check in with them once a year, keep yourself on their “currently uncollectible” status, but that’s about it.
Hi Jan, going back to my questions on Oct 1st 2013. I wanted to clear things up for myself to fully understand my tax situations for 2013. The IRS has not threatened to levy my bank account, yes, it’s true all my 100% disabilities I receive from the VA and SSDI are deposited into my wives banking account. I might note that was granted 100% from the VA. I cannot work otherwise my wife % I will loose our monthly compensation and we will be on the street.
I might mention that previously we lived in Detroit when the auto indusary began to fold up. We and almost everyone thought our jobs were finished. I waited it out on unemployment until I received my termination papers (26 years). During that period, I didn’t pay any taxes.
Not long after that Obama offered a plan for those that couldn’t afford their mortgage payment, The government would work out a plan to keep your house but I had to pay $400.00 more per month. There was no we could afford all of this was offering a plan to save everyone from loosing their house. We packed up our belongings, cleaned the place up like new and wrote the builder explaining why we had to leave with the key inside.
We had moved to Florida and leased a house for one year. We both worked for just low wages. During that year in Florida we received many phone calls & letters regarding the forclosed house in Detroit.. We ignored them and after a year moved to a house we bought under a land contract. We have managed to put all our money under my wives banking account. Before we made these transactions, we got the advise of bank managers, lawyers and they all agreed because my wife’s name was not on the puchase ( agreement) and I wasn’t married to her at that time.
The lawyer said to keep a low amount of money in my account like $500.00. All my possisions are in my wife’s name.
Advise?
Hi Khar,
You have a lot of questions so I’m going to reprint part of your comment with your questions to keep them in order.
This concerns me since she even mentioned that it will be in public records on my credit report. Will this affect my credit?
Yes, tax debts can affect your credit report.
Can I do something about it?
Get your payment arrangement set up. You’ll need to contact New York to find out if they have a lien on you or not. The IRS generally will remove liens if you make a “direct debit” arrangement. I don’t know about New York’s rules. It sounds a little strange, but it’s possible that they’ve got the levy without placing a lien. (Yes that seems backward but the feds do it, I don’t know about New York.)
It is not my fault that they don’t have my apartment number when they should have it all correct since they have my information when we filed taxes for last year.
You might want to double check that. Sometimes the software has a box for the apartment number but people put it on the address line and the apartment number gets cut off.
Oh and I asked her to send me the original notice with my correct address. I gave her my apt number which she updated my address on file just yesterday.
It’s just so confusing since we started paying federal owe tax around september 2012, filed tax april 2013 this year, when we received our federal return, federal deducted the remaining balance on what we owe as to make it payment in full, which was around july 2013.
NYS tax is telling me that they sent first notice march 2013 that we owe taxes.
Shouldn’t they have sent it sooner since federal did theirs sept.2012.
The states basically rely on the federal for their information. New York would be behind because they would have waited for the federal to show what the status was.
Also, we even received our NYS tax return around June 2013 without any deductions. They didn’t even deduct it.
I’m guessing you received your refund because NY hadn’t discovered that you still owed yet.
I know I have lots of questions, but hope you can answer all of the. I would very much appreciate it.
Jan’s questions: The problem with trying to answer questions online in a spot like this is that clearly I don’t know the whole story. Did you file taxes in 2012 and owe and just not pay? Or did you file taxes in 2012 and you later got a notice saying that you missed something and needed to pay?
I’m guessing that you got an IRS CP2000 letter–the one that says you missed something on your return and now you owe more. (Because when you found out that you owed–you made arrangements to pay so that seems the logical answer here.)
So did you get some professional help when you got that IRS letter? The reason I’m asking is because often people don’t owe as much as the IRS says they owe. And if you had a professional help you, she would have known that once you get that IRS letter, you need to amend your state return also.
You’re stuck with the levy, even if you don’t really owe the money, you still have to refile and it will take some time to straighten things out. But I want you to have someone take a look at your taxes. If they find that you shouldn’t owe as much as the IRS said you can still file an amendment with both the IRS and with New York. It’s worth the money for you to check this out.
Hi Jan!
I received a notification from my bank that $1500 from my savings account is on hold. So I called my bank to ask the reason for the hold and they told me that its the New York state tax put a hold on it. And NYS tax left their number so I can call them. So I did and I asked what is that $1500 for, this lady told me that we owe taxes.
I do remember we owed United treasury which is the federal tax, but didn’t assume that we will also owe the NYS tax. The tax we owe with federal has been paid because we received the notice and we called to make payment arrangement.
Now, back to NYS tax. I told the lady that we haven’t received any notice about it. She mentioned that they sent out 4 notice which 2 was sent back to them and that means the other 2 was received. Which I told her, we have not received it. Because if we did, we would have paid or made arrangement just like the federal. I also mentioned to her about the federal that after we got the notice, we made the call and made payment arrangement. So I asked her what address she has on file. She told me the address but they don’t have the apartment number on file. So I told her, no wonder I am not receiving it. She still insist that 2 out of 4 notices they sent was not returned, assuming that it was received. The apartment that I live for the past 2 years has around 120 apartments. If they don’t have the apartment number, of course it will be lost.
I asked her what else she can do, since they didn’t have my apt number that is why I am not receiving notices. She said she cannot do anything cause even if they sent it to the wrong address, that there is a notice on the federal (first notice that we owe taxes) to also check NYS tax if we owe money.
Now I am looking through my papers and couldn’t find the first federal notice. But I don’t recall on federal to also check NYS tax.
This is just frustrating. She told me after the attempted 4 notices since April 2013, that a warrant was issued and levies my bank account of the amount owed. Isn’t there a time frame on how long they should try and get a hold of me before they do a warrant. It’s just upsetting that I have confirmed that they didn’t even have my apartment number. And I have mentioned that federal was successful on sending me the notices with my correct address and how come NYS tax has an inaccurate address or incomplete address.
This concerns me since she even mentioned that it will be in public records on my credit report. Will this affect my credit?
Can I do something about it? It is not my fault that they don’t have my apartment number when they should have it all correct since they have my information when we filed taxes for last year.
Oh and I asked her to send me the original notice with my correct address. I gave her my apt number which she updated my address on file just yesterday.
It’s just so confusing since we started paying federal owe tax around september 2012, filed tax april 2013 this year, when we received our federal return, federal deducted the remaining balance on what we owe as to make it payment in full, which was around july 2013.
NYS tax is telling me that they sent first notice march 2013 that we owe taxes.
Shouldn’t they have sent it sooner since federal did theirs sept.2012. Also, we even received our NYS tax return around June 2013 without any deductions. They didn’t even deduct it.
I know I have lots of questions, but hope you can answer all of the. I would very much appreciate it.
Hi Courtney,
I’m sorry the state is treating you so badly. Here’s a case where you’re trying to do the right thing and they’re threatening you instead. That stinks. (Sorry for the editorializing but seriously, It seems people miss payments because they don’t have the money.)
Anyway, to the best of my knowledge, there has been no way to garnish a Netspend prepaid Visa Card. (At least not yet.)
That said, if you’re having your paycheck deposited to your net spend card–your paycheck could still be garnished before it’s ever sent to you. The state can contact your employer and garnish your pay. That’s what you need to be concerned with. Sorry. Just wanted to make sure that I made that clear.
Hi Jan,
So my question is pertaning to state taxes. I received a letter earlier this year stating I owe for 2010. I did set up arrangements but I wasnt able to keep them. The state has stated I cant set up a new arrangement until I pay what I have missed in payments. That basically means I would be paying it off. I dont have the funds right now at all. I called today and was told they can force garnish at anytime. My question is Ive been using the Netspend Prepaid Visa cards for the past year, will they be able to put a levy on that account?
Thanks for your reply regarding PTSD, SSDI & the possible of garnishment by the IRS. I have no taxable income, however I read somewhere that there is a limit for a single or jointly income over a certain amount that might set off the IRS. Thanks
Hi Veronica,
It doesn’t matter if your names match or not–just so you know.
Now, the fact that he is not on your bank account probably protects you, but I would go to the bank and talk to your banker just to make sure.
The debt is his from before you were married–but if you were to file together and you had a refund–the IRS would take your refund even though it’s his debt. You would need to file an “injured spouse” return to protect yourself.
Since you want to buy a house, I’m assuming that you would get the loan together–and his debt could keep you from qualifying for the loan. You’ve got your work cut out for you on this one.
My guess is that it would be difficult for the IRS to levy your bank account for your husband’s debt given that he’s not on the account and you have not part of the debt yourself, but make the phone call to your bank just to be on the safe side.
Hello so I had a question so I am married thru civil court for about 6 yrs my husband owes irs mobey feom before he was w me and now he hasnt paid either so Im trying to sav money for a house and was wondering if tge irs take my money since im married to him but hes not on my bank account nor I have his last name
Hi Rick,
I’m guessing that you have a balance due with the IRS? It sounds like you’re in a “currently uncollectable” status. You may be there forever. If I were you, I’d just keep an eye on the situation. Once a year, the IRS will send you a letter, you’ll call them and say, “disabled vet, low income” etc. and they should continue the status.
They can’t garnish your VA payments and your VA payments aren’t taxable. The IRS can count your VA payments as money that is available to pay debt–but they also need to allow you enough money to buy food, clothing, etc.
If your VA check is being deposited into your wife’s account, I’m thinking that your name must be on there somewhere, in which case, the IRS could levy that account if they were going to issue a levy. So if that is a concern for you, be aware that it is a possibility.
Hello, I’m a 100% disabled for mental problems and more. I can’t drive nor work another job otherwise the VA will take my disability away . I also have no further reviews in the future. My wife also gets $400 for aid and attendance. My wife also receives $380.00 from her Ex as part of his retirement. after their divorce. We spoke a layer here in Tennesse and he mentioned the 100% disabled vets don’t pay any state, federal tax in this state..All my direct deposits go into my wife account. My name is on nothing so does. I didn’t have to pay anything for last 2 years.
Hi Tiger,
You’ve got a good question–does the IRS only levy one bank account at a time or will they levy everything? The answer is–it depends. It depends on if they know about the account and if the account is attached to what they think is owed. For example: I represented a person who had a checking account and his name and social security number was also attached to his kids’ bank accounts. Now the chldren had grown up and moved on, but the father’s name was still attached to the accounts from back when the kids were in high school–the IRS nailed the kids’ accounts.
Your business, if the IRS has a record of it being tied to you–could be in danger also. Your best bet is to go to the bank and check on the account. It may be wise to move your money if they haven’t levied yet, just to be safe.
Hi Jan – it’s been about a year since my original notification from the irs that I owe back taxes for a large amount. The company they claim paid me this income I have never heard of. It is my belief my identity was stolen or there is some sort of error with the irs. I have called the irs numerous times and when I have talked to a agent I have followed there instructions and sent any paper work they requested. Today I walked into my bank to find my account levied. I have a small business at another bank that I am concerned about. Does the irs typically only levy one account at a time or does it levy all bank accounts at all banks within the same time period? I’m hiring a agency on my behalf but worried about my small business account and property.
Hi Jessie,
You should be okay. If the IRS has you on the “do not collect” status–they won’t levy your account. Now usually, a property lien is only on the sale of the property. But you said, “property tax levy” so if your county put a levy on you for property taxes–there may be an issue there. I’ve only dealt with property lien’s which would not affect your bank account.
If you truly are having a problem with your bank because of a levy–you can go cash your check at a check cashing place. Yes, there’s a fee, but at least you’ll have some cash. Then contact the county tax authority that placed the levy and get things worked out.
But if it’s just a property lien– (grammar is everything isn’t it?) if it’s a lien–your bank should be okay.
Hello, my wife and I received an IRS tax levy against my property and future assets. I have a severance check that I tried to cash directly from the bank issuing my paycheck. It was Saturday, the bank teller said there was an error code on their system and their home office was closed so they couldn’t verify anything and to come back Monday. I’m hoping I can still cash my check and the issue was merely the paycheck amount. I have not received any letters informing me of a bank levy and the letter isn’t clear about how any of my checking accounts are or can be affected. 1) Is this a sign that I can not cash my paycheck? 2) My tax person said the property levy should only affect my home and a letter we received from the IRS states I am on a “do not collect” status for a period of 1 year. Can she be wrong and that the property tax levy includes bank accounts as well?
thank you
Hi Ashley,
I’m sorry that happened to you. It looks like the money is already gone so it’s too late to put a stop on it. If the IRS hadn’t already taken the money, I’d think you’d have a good chance at stopping the levy–I did it before when the IRS did that to one of my client’s children. But once the money’s gone–it’s gone.
The worst part is–you never even knew what was happening. Since you’re only 16, I don’t know if you can take your mother off of your bank account. If you’re allowed to have a bank account without your parent’s name on it, I’d take her off.
I’m guessing that’s not an option for you.
My best guess is that that money is gone. The IRS would not have levied if they didn’t believe they were owed the money. Now that they’ve got it, don’t expect them to give it back. You’ll have to get that money back from your mother.
If all of your mother’s tax has been paid, there’s not risk for a future levy. But if she still owes, then you’ll want to find ways to protect yourself. You might not want direct deposit anymore. Keep a little money in the account so you can cash checks, but then you’ll want to cash your pay checks and maybe put the money on one of those reloadable check cards. Once you’re able to have a bank account without your mother on there, then you can have a bank account again.
If I’m misunderstanding and the money is still in the bank–just levied (there’s 28 days between when the levy is issued and when they actually take the money), then you have a fighting chance of stopping the levy. You’ll have to make the call to the IRS with your mother present, and she’ll have to swear that she does not use that account. It’s not going to be easy, but if they haven’t taken the money yet it is possible to save it.
Hello,
So my mom is a co signer on my bank account.. I’m only 16. Today I realized I am about $1,400 short. And thats ecause there is a levy on my account. I the only one that usesy account. And my name is on everything. Is there a way I can get my money back? I did nothing wrong for it to be gone. It’s money. By The way I hae direct deposit through my work to my account do that proves it’s mine… How do I go about this!
Hi Barb D,
A couple of thoughts here: Your husband shouldn’t be able to direct deposit his check into your bank account if his name isn’t on it. I’m guessing it must be legal in your state.
That said, if your husband’s name is not on your bank account, the IRS should not be able to levy your bank account for his back taxes.
But there are other issues here. First, you will want to claim injured spouse whenever you file a tax return. The IRS will levy whatever should come back to your husband, but they should refund anything that should be yours. It could help you a bit.
About the levy on his paycheck, that’s taken before the check actually goes to your bank account, so there’s not much you can do there.
It’s possible that your husband could contact the IRS and make an installment agreement to pay back the money he owes, the could get the levy lifted. Although it may just make more sense to leave the levy in place and get that whole back tax mess finished up. You sort of have to look at the situations and do what’s best for you.
I would recommend not putting your husband on your bank account until this mess is over with though. Once his name goes onto your bank account, the IRS could go in and grab your funds too.
Hi Martha,
Your daughter’s account was levied by her landlord, not the IRS. I’m afraid that I can’t help you. I think you need an attorney, I’m not a lawyer. Sorry.
Hi Ahom,
I would have her contact the IRS and explain that she is only a cosigner on the account because you are currently out of the country. It may or may not work. I had one client where the IRS said fine–and they took the son’s bank account out of the parent’s IRS levey. Another time, the IRS refused because the parent had actually used the son’s bank account for his own purposes.
When your mother contacts the IRS, they will probably ask her to fax recent copies of the bank statement to them. She’ll want to show that all the transactions in the account are for you and not for her.
If the IRS already has the levy in place, only the IRS can remove the levy. So definitely have her contact them first before you have her removed from the bank account. She should make sure that she has the name and fax number of the representative at the bank so that she may give that to the IRS–it will speed the process of them taking the levy off. (If they decide to be helpful.)
Hi Ed,
The IRS is already levying you so you’ve really got nothing to lose here. If you get another job, they’ll find you eventually and they’ll start garnishing that check as well. So, what to do?
File those back tax returns. That’s step one. They won’t negotiate with you without it. At 50-60 thousand dollars, I’m thinking it’s time to make an offer in compromise it you come anywhere close to qualifying. Here’s a link to the IRS web-site “pre-qualifier” to see if an offer would work for you: http://irs.treasury.gov/oic_pre_qualifier/
Even if you don’t qualify there, you can probably do some paperwork to set up some type of payment arrangement so that they’re not taking a full 75% of your paycheck every week. Good luck.
So the IRS has caught up with me, I need to file for the last 5 years and fear I may owe up to 50-60k in back taxes not counting late Penalties or interest. They kept my last return and are taking about 75% of my check. If I get a 2nd job will they take 75% of that too? Help. Advice?
My mom is a co-signer on my bank account and she has received a notification that the IRS is threatening to levy her AND my bank accounts. She has been a co-signer on my account since I’ve been living abroad and it was nice to have her able to access my account when need be to deposit money etc. Is there a way to remove her from my account before the levy goes into place so I don’t have my money being paid to the IRS?? Or can she contact the IRS and explain that my account should be left alone?!
Hi Allen,
So the IRS garnished your severance pay a year and a half ago and now you’re getting rehired. Will they still garnish your pay?
My best advice is for you to call them. Figure out where you stand, file those back tax returns, and make some sort of arrangement so they don’t garnish your wages.
My best guess is the garnishment won’t be active right now as you’ve been gone from that company for over a year. That said, once the IRS finds out that you’re working (probably next tax season) if you still owe them money, then they will be going after it. Beat them to the pucnchline and get yourself caught up.
Oh I forgot to add, that they are already going into his pay check and deducting money as well. I’m confused about it, because they keep sending letters as if he isn’t making payments. Although that isn’t true as they take extra for his past debt, every paycheck!
I have a single account. Before I got married my husband had a past amount due to IRS. He was living with a woman, and taking care of her children. So she convinced him it was legal for him to claim them. She then turned around and had the biological father claim them as well. Getting money from both men, out of the deal. When it all hit the fan, they came back to my now Husband for that money that was refunded to him. Now fast forward to today, I’m married to him. He owe’s 2900.00 and they sent out a levy form. My question to you is, can they levy my account if his name isn’t on it, but his Direct deposits go into my account?
My daughter signed a lease agreement with an apartment complex in VA and after a few months into her second year of the lease she fell into a hardship and was unable to pay her rent the rental office evicted her now they have a lawyer that have put a levy on her bank account. they took $264 plus 125 in the first transaction and two weeks later they took her pay check of 900. her account is frozen and she can not get anything out of it. My question is how long can they keep a levy on her bank account? The 389 was the amount she had in the bank when the levy was put on the account, but the 900 came into her bank two weeks later and they still got it as well.
If she was to get a pre-paid visa card could they find out about that account and levy it as well. they sued her for 6 months of rent because they said she broke the lease, but they actually evicted her and she had no choice but to leave.
any information would be appreciated.
thank you
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IRS stated I never filed my returns. Notices they sent went to an address I never lived at. Got notice at work of garnishment. I was laid off and all severance was garnished. Been a year and a half and company is hiring again. Will that same levy be in place if I am rehired?
Thank you Chris,
I appreciate the comments. Good luck and do keep us posted on what happens.
Thanks, Jan. I was able to get in contact with a representative with the Iowa Department of Revenue and it sounds like they had never received any record of me filing. He told me that the state generates a return based on my likely income for that year (apparently they thought I made 6 figures while I was in school?!).
I contacted the IRS, got a transcript for that year, and refiled. I’ll follow up this week to see if my issue is fixed. The representative also told me that the state hadn’t taken the money yet. The bank is holding it and if the issue isn’t resolved within a certain amount of time, the bank will issue a check for the amount held to the Department of Revenue. Hopefully we’ll come to a resolution soon.
I’ll go ahead and speak on behalf of this whole message board. THANK YOU for taking the time to help us out!
I’ll keep you posted regarding my situation.
Hi Kenneth,
First, the IRS will not apply your 2004 refund to anything because the statute of limitations has worn out. Sorry.
But they will work with you on a payment agreement. Call them, make a deal. If you call them, they won’t be coming to your work. I’m thinking the minimum payment they will accept would be about $60 a month. If you can pay more, do so and get it taken care of. They just keep piling on interest if you don’t pay if off.
Hi Chris,
You’re not going to like my answer–I’ll warn you now. The state contacted you in 2006–you didn’t respond. It took them 7 years before they actually levied your bank account. But technically–they did contact you back in 2006. So you won’t be able to sue them for not warning you. I know, that stinks, but there you have it.
Now, the money’s gone and you’re not going to get it back. I’m guessing that you never filed your tax return. What you should have done back in 2006 was to find out what the problem was and fix your 2000 year return back then.
Since you never filed, you may be able to file now and at least prevent any further damage.
While the IRS has a statute of limitations of 10 years–the states are a different animal. Here in Missouri, I’ve got a taxpayer who owes for 1989. Although Missouri has a statute of limitations, they can extend it if they have filed a lien–and they just keep renewing those liens before they expire.
If your funds are still tied up, you may be able to contact the state and have them release some funds for your necessary bills. Have access to a fax machine and copies of the bills ready. I’ve done that before for clients with the IRS–I don’t know how your state will react.
The whole point of the levy is to get your attention–which it did. Get this old issue handled and out of the way. Make sure you don’t have any other old debts that they intend to levy on either. Good luck.
Hi Sherri,
You’ve just told the tragic tale of what happens when you don’t keep up with your offer in compromise–you miss your payments and you lose your deal. And you owe a lot of money to the IRS. But here’s a few more things you need to know: one–while you are in an OIC, the statute of limitations is suspended–that means that the clock isn’t ticking on the 10 years. The clock also stops during a bankruptcy. The IRS has all sorts of ways to make the clock stop.
Plus, do your really want to put another 10 years of your life on hold? Seriously. Right now you can’t do anything. If you had enough earnings that you owe the IRS $69,000–don’t you want another good job? Do you really want to keep hiding for 10 years?
I suggest that you contact the IRS, and get yourself into a payment agreement. Explain all the issues, why you can’t pay more than $X and work something out. Whatever you do, make a schedule that you actually can keep, not one that you’re going to miss deadlines on. And then live your life, the one that you’re supposed to live, not one where you’re hiding from the government for 10 years. You deserve better than that.
Hi Diane,
You will need to contact them and wait on hold (forever). You’ll want to reinstate your installment agreement. Get through to them before they levy you.
Hi Brad,
If you have an exchange rate for a specific date, that’s the best choice.
Hi Jenny,
If the state gets it’s money twice, you will eventually get your money back. It will take them awhile to sort things out, but you will get your money. Make sure that you follow up if you don’t get your money within a month. Then follow up again in another month if nothing happens.
Hi Laurie,
For one thing, if your mom deposits those checks into her own bank account after the levy, the bank has to release those funds to her. They can only hold the funds that were in the account at the time the IRS issued the levy.
That said, she may not feel comfortable having her money in the bank.
It is not illegal for her to sign the checks over to you and have you give her money as she needs it.
I owe roughly 4k for 2009, 2010, and 2011 and want to make a payment arrangement w/ them, will they work with me, they say i didnt file in 2004 but was owed a refund that year, how can i get that applied to my tax debt ….will i see a irs collector at my job?
Hi Jan-
I had an issue with my state taxes in 2000 and was contacted in 2006 about the situation, with the state telling me that I owed them almost $10,000. In 2000 I was a student and had part time jobs on and off, but have no idea how I’d come to owe the state that much money. There was a year or two where I remember not filing back then (I was young and dumb). After they’d contacted me, they wouldn’t give me an explanation to why I owed that much money. I talked to several representatives, pleading my case and finally they stopped calling.
The other day I’d received a NSF alert on my mobile phone for one of my bank accounts. A levy was put on all of my accounts, draining each one. Now I have no money, no way to pay bills including my rent and car payment, and no money for groceries this week. Nobody had contacted me and I had no idea that this was coming. I talked to a friend of mine at the bank and he gave me a contact number to call. of course it’s the weekend and I’ll have to wait until Monday but I’m unsure of what options I have to fix this.
Are they required to provide me with the evidence to why they think I owe them that much money?
If there’s a glitch in their system and this was a mistake, is there legal action I can take for putting me through this hardship?
I just don’t understand how I could owe more money in taxes that year than what I probably made, even if I failed to file.
Thank you ahead of time!
I did an offer and comp they accepted it for 30 k from 69k I couldnt come up with the 10k downpayment and then make 1400.00 payments until it was pd in 24 mths so they cancelled my oic. I received a levie notice I dont have a home in my name or bank acct in my name or car in my name or job at this time because i was laid off. I am up to date with all my filing yrs even this yr 2011 I was told in 10 yr 30 days it all will be gone and zero balance but will go up to 250k in taxes owed. I know its ruined my credit but it was ruined anyway from divorce. I feel I have nothing to loose if I just wait out 8 more yrs. What do you think should I try to make payments or file Bankruptcy and make sure it would be in it or, just wait it out.. I dont have anything to take but my boys have 2 homes in a trust that I live in and rent out with an aunt as the trustee. Advice will be appreciated. Thanks Sherri
I had an installment agreement to pay 50.00 per month as I’m on SSI and do not receive a lot of money. Something happened to where my payment for January was not accepted yet I did not know until I received a notice “intent to terminate installment agreement” on 2/4/13 unless I paid in full by 2/19/13. I have had an agreement for 2 years and this was the first time my payment was returned, will my account be levied? I have tried to contact them and the line is always busy and I did make a 50.00 payment recently. What could I expect now?
Ok, so my bank account was levied by the State and the bank is holding that amount for 21 days. Then the state will get their money but I got my federal refund and they subtracted that same amount I owed the state and they will give that to them in about 3 weeks. So to me it seems that the State will get their money twice. Once from my bank and also from my federal refund. Is that possible and if that does happen will the state or irs refund me one of those amounts? So confused!
Hi, my mom has recently had all of her bank accounts frozen by the IRS. She can’t pay her bills.
She has several checks for large amounts of money. Is it legal for her to sign these over to me, so that I can deposit them in my account and give her cash as needed? Are there any criminal or civil federal implications on me if I do this? I doubt state enters into this at all, but I live in Maryland.
Thanks.
Hey Dell,
I’m not sure–you’re talking about your state refund. Is the IRS confiscating your state refund? Is the IRS levying that? If they are and they only took half, then it sounds like you’ll get the rest. I’m not 100% positive, but that’s the way it sounds to me.