Get Relief from Bank Levy & Wage Garnishments Near You!

When you owe back taxes, it’s easy to let the pressure build. After all, if you can’t pay, you can’t, right? Unfortunately, the IRS and state tax authorities can and will take drastic steps to collect, including contacting your employer or bank to divert funds until the debt is paid off. A bank account levy issued by the IRS is one of the most extreme collection tools. Wage and bank levies can be devastating, not even leaving you with enough to cover basic living expenses, let alone the cost of good representation.

Although we may not be able to recover what has already been levied, we generally can get the levy released on your paycheck or bank account by requesting a reduction in the amount going to the IRS or even requesting an Uncollectible Status, which means you do not have the financial ability to pay anything currently.

IRS bank levies are legal seizures used to collect unpaid taxes. They allow the IRS to take possession of funds from your bank account to satisfy tax debts. The process is serious and requires immediate attention to manage effectively.

Understanding Bank Levies

A bank levy is a legal action by a creditor or the Internal Revenue Service (IRS) to seize funds from a bank account to satisfy an outstanding tax debt or other unpaid debts. When the IRS has exhausted other collection methods, such as sending notices and making phone calls, they may resort to a bank levy. This serious measure can leave you with limited or no access to your money, making it challenging to cover daily expenses.

The IRS initiates a bank levy by issuing a Notice of Levy to your bank. Upon receiving this notice, the bank must freeze your account and hold the funds for 21 days before releasing them to the IRS. This 21-day period is crucial as it provides a window to resolve the issue or seek a bank levy release. It’s important to note that certain funds, like Social Security benefits, are exempt from an IRS bank levy, offering some protection to those in need.

Wage Garnishments

A wage garnishment is another powerful tool the IRS uses to collect unpaid tax debt. Unlike other creditors, the IRS can issue a wage garnishment without a court order, directly deducting a portion of your wages to satisfy the debt. This continuous levy continues until the debt is fully paid or the IRS releases the garnishment.

When the IRS decides to garnish your wages, they send a Notice of Levy to your employer. Your employer must withhold a specified portion of your paycheck and send it directly to the IRS. The amount garnished can vary but is typically a percentage of your wages. Sometimes, the IRS may also target 1099 wages, affecting independent contractors. This can significantly impact your financial stability, making it essential to promptly address the underlying tax debt.

At Lothamer Tax Resolution, we act fast and with integrity. Because time is so pressing in these matters, we offer flexible, interest-free payment arrangements so we can get to work right away. We’re one of the few tax resolution companies in the country that can offer same-day tax help, maximizing the 21-day bank levy time window to negotiate with the IRS directly. Most bank levies can be released within a specific timeframe if addressed promptly.

If a wage garnishment or bank levy is burying you in further debt or threatening other sources of income, such as your retirement benefits, call us to get the relief you deserve. We specialize in IRS bank levy release, negotiating with the IRS to obtain a release, and helping you navigate the complexities involved.