IRS Levy Relief and Bank Levy Release Help | 20/20 Tax Resolution

Stop IRS Levies Before More Damage is Done

An Embargo de Hacienda can lead to a frozen bank account, garnished wages, or business assets at risk of seizure. This situation is incredibly stressful and overwhelming, particularly if you’ve lost access to the funds you need to pay bills, keep your business running, or meet your other obligations.

A levy is one of the most serious collection actions the IRS can take against an individual or business taxpayer. But the good news is that levy actions can often be stopped or released, especially when you address it quickly and strategically with a tax professional.

The team at 20/20 Tax Resolution helps individuals and businesses across Colorado and the rest of the United States respond to IRS and state tax agency levies. Call us at 1-877-369-5420 to find out how we can help you intervene, stabilize your tax situation, and find the right path toward resolution.

You’re in the Right Place If

Do you need tax levy services? You should contact us for help if:

These situations are serious, but they are still manageable. With the right approach and professional guidance, you may get a levy released or keep it from escalating further.

These situations are serious, but they are still manageable. With the right approach and professional guidance, you may get a levy released or keep it from escalating further.

What is an IRS Levy?

An Embargo de Hacienda is a legal seizure of your property to pay off your tax debt. There are several types of tax levies, including:

• Bank account levies
• Wage garnishment
• Accounts receivable levies
• State tax levies

People often confuse liens and levies, but they are significantly different. A lien is a claim against your property, but a levy involves actually taking that property to satisfy your debt.

How Levy Action Escalates

Before levies happen, the IRS goes through a long process that gives you multiple chances to address your tax debt voluntarily. Typically, you receive four to five notices before the IRS sends you a Final Notice of Intent to Levy. Once the IRS sends a Final Notice of Intent to Levy, you have just 30 days to take action before they can legally levy your assets.

The Immediate Risks of Ignoring a Levy

Ignoring a levy doesn’t improve your situation. Instead, it can lead to:

• Frozen bank accounts and loss of funds
• Ongoing wage garnishments
• Missed bills due to frozen accounts
• Business disruption and loss of reputation within the community
• Continued enforcement actions

People sometimes assume that once a levy is issued, they don’t have to worry about it happening again. Consider a bank account levy – If the amount seized doesn’t cover your full liability, the IRS can levy your bank account again or proceed with a wage garnishment until the tax debt is paid off. However, there are ways to stop IRS bank levies and other levies.

How 20/20 Tax Resolution Stops or Releases Levies

IRS levy relief requires immediate, informed action. The experienced team at 20/20 Tax Resolution focuses on getting all the information we need to understand your tax situation. Then, we help you compare resolution options and negotiate on your behalf to stabilize your situation.

When you engage us for tax resolution services, our team will:

• Conduct a thorough case review of your IRS transcripts and account status.
• Determine whether or not we can appeal the levy.
• File a CDP or equivalent hearing request if applicable.
• Communicate with the IRS or state tax agency on your behalf.
• Negotiate a release of an IRS levy.
• Establish a resolution strategy that addresses your current tax problems while laying the groundwork for future compliance.

While stopping the levy is a top priority, it’s not our only priority. We also want to resolve the underlying tax issue to keep it from recurring – that means securing a resolution option (payment plans, settlements, or not-collectible status) and setting you on a path for future compliance.

During your initial consultation, we’ll review this process with you so you know exactly what to expect.

Our Levy Relief Process

Special Consideration: Bank Levies, Wage Garnishments, and Business Levies

Each type of levy comes with its own risks and considerations.

Bank Levies

When the IRS freezes your bank account, the funds in it are inaccessible to you. The funds are held for a short period to allow you to protest if the levy was issued in error, and then they’re released to the IRS. You may be able to get funds back if you can prove financial hardship or show that the IRS made a procedural error.

Wage Garnishment

IRS wage garnishment follows different guidelines than other creditors. The IRS can leave a small amount available to you based on your dependents and filing status, but they can seize the rest. The garnishment order may remain in place until the debt is paid off. It may be possible to secure IRS wage garnishment help, replace it with a structured payment plan, or request a release.

Business Levies

Levies against business assets can immediately disrupt your business’s operations and leave you unable to pay suppliers or make payroll. The IRS may seize equipment, inventory, receivables, bank account balances, and other business assets. It is crucial to develop a strategy and begin negotiating immediately to keep your business operational.

Proven Results

Want to see how our levy services have helped other clients? Look at these comments:

“The company I work for has been working with 20/20 Tax Resolution since February of 2022… They helped us stop the levy process and worked as a go between for us with the IRS. I have been working closely with Tiffani. She was able to get us a very manageable monthly payment which allowed us to decrease our liability and keep current. With their help we have been able to finally get to a place where we can see the light at the end of the tunnel.” – Tracie L.

“Dealing with the IRS is really stressful, especially when they start to reach into your bank account. Adaku and her team have been hard at work helping me with my tax issue. They were able to stop the levy on my account and lower my payments.” – Rogelio R.

“My husband and I fell behind on our taxes with one calamity after the next for the last 4 years, couldn’t stop the IRS letters, notices of wage garnishments, the levies, & the list goes on… Shannon worked on our case over the Christmas break. Three weeks later, we received a phone call that gave us the peace we had been praying about, reaching out to the IRS on our behalf.” – Shelita L.

Preguntas frecuentes

How long does it take to release an IRS levy?

Levies may be able to be released quickly after intervention. The timeline depends on your financial situation and the resolution strategy we use.

Can the IRS return money taken from my bank account?

In some cases, the IRS may return funds to you, particularly if you resolve the tax debt another way or if the loss of funds causes significant financial hardship. But typically, it’s very challenging to recoup cash that has been seized by the IRS unless the levy was done in error or the IRS made a procedural mistake.

How much of my wages can the IRS garnish?

The IRS uses formulas that account for your family size and filing status to determine how much you can keep of your income. They can garnish everything above that amount.

What if my frozen account prevents me from paying employees?

If you can’t make payroll due to a bank levy, immediate action is critical; otherwise, you risk fines and penalties from your state’s labor department on top of tax issues. But note that bank levies only freeze the balance in your account on the day of the levy. If you deposit additional funds, you can use them. However, the IRS may decide to levy your account again. Work with a tax professional to find a resolution option that stabilizes operations and prevents further disruption.

Will entering a payment plan stop a levy?

In many cases, a payment plan can stop a levy and provide you with stability as you pay off your tax debt.

What happens if I ignore a Final Notice of Intent to Levy?

After the IRS waits out the 30-day period, they can levy the funds in your bank account, garnish your wages, or seize other assets. If you don’t take action by the deadline, you put your assets at risk.

Can a levy be released for financial hardship?

Yes. If a levy causes significant financial hardship, the IRS may release it.

Can state tax agencies also issue levies?

Yes. State agencies have similar enforcement options as the IRS, including the ability to levy wages, bank accounts, and other assets.

Take Action Before More of Your Funds Are Seized

If you’re facing an IRS levy, timing matters. The sooner you act and pursue a resolution, the more options you have. At 20/20 Tax Resolution, we offer confidential consultations to help you understand your options, the risks of your current situation, and our recommendations for moving forward.

Reach out today for the guidance you need to take control of your tax situation. Contact us online or call us at 1-877-369-5420 to schedule a consultation.