A bank levy can be understood as the amount that you owe because of the IRS (Internal Revenue System). When you fail to submit that amount on time, the IRS starts to take action. They might even seize your property in order to pay the tax debt.

The IRS needs to send you a notice when seizing your property. However, they might not do so and may take the money from your savings account. If they do send the notice, it will be received by the bank where your assets are. Eventually, the notice will be sent to all the banks where they think your assets might be.

It can be daunting for people in Dallas who rely on funds that they can no longer access. The bank will hold your money for twenty-one days; after that, it will have to give it to the IRS.

In addition to this, the bank may also charge a certain amount to handle the levy. You may find solutions to such problems from tax resolution services in Dallas.

What are the property items that cannot be included in tax levies?

• The necessary items, such as clothes and books, are for both the taxpayer and their family.
• Personal items in the home, such as furniture and fuel, should cost no more than $6250.
• Tools necessary for producing income.
• Benefits received in case of unemployment.
• A portion of the income that is needed to support the finances of children under the age of 18 years.
• Certain pension payments cannot be levied either.

What are the requirements for a tax levy to be valid?

● Issuing the notice to the taxpayer:

It is essential that the taxpayer receives a notice beforehand and that the demand for payment has also been made. There is no need for a receipt; only a notice would suffice.

● Negligence on the part of the taxpayer:

The taxpayer must have neglected to pay the amount on time, including the penalties and any interest amount involved.

● Issuing two final notices:

The IRS needs to issue two more notices to ensure that they have done their part of the job. The notice will be of intent to levy (having the right to seize property).

Another final notice needs to be sent at least 30 days before levying the property. It is done to ensure that the taxpayer gets enough time to find a resolution.

How can you prevent a bank levy?

● Responding to the notices issued on time.

Before the levy is imposed, you will receive two notices stating that your assets will be seized if you do not pay the liabilities on time. You need to make sure that you respond to such notices on time so that the levy can be stopped from being imposed. Try to get to a solution before they start to seize your assets.

● Paying the total amount within the stipulated period.

If you really want to get rid of the bank levy, the fastest way is to pay the entire amount. If you make the payment on time, they can no longer hold your bank accounts or assets. However, it may take some time for your bank accounts to unfreeze.

● Have a look at the statute of limitations in Dallas.

The debt can only be collected within a limited time frame. In California, the creditor can only collect the amount within four years. You do not have to pay the amount if the timeline is passed.

Therefore, if you think your debt has become old and has crossed the statute of limitations, contact a tax resolutionist and get rid of it.

How can tax resolution services help in bank levies?

They are professionals in the field and can talk to the IRS to get favorable terms for you. Furthermore, in cases where the statute of limitations is crossed, they can help you resolve your debt.