First of all, the IRS is not allowed to freeze or seize assets without proper notice. If they did not issue one, you do not need to worry. They most likely are using a scare tactic just to get your attention. But, if the IRS does send an official notice, your bank, under the law, must hold all monies for up to 21 days before the IRS can take it. This gives me ample opportunity to get to the bottom of the situation and contact the IRS on your behalf. I will try to negotiate a full or partial release of your funds.
There are a few situations under the federal laws where the IRS has to release a bank levy. If you already agreed to an installment agreement, you should be safe from bank levies. Your specific agreement might have a clause specifying that a levy needn’t be released in such a situation. Or, the statute of limitations on the collection could have ended before the levy was served, and that would render it moot.
You may also provide documentation that the levy is creating an unnecessary economic hardship for you. Or, preventing you from paying the tax that you owe. Of course, the easiest route to releasing the levy is to pay the taxes that you owe.
Other, less common reasons for releasing a bank levy include the IRS neglecting to follow its procedures. Also, returning the property could help enable you to pay your taxes. Sometimes they will relent if returning your property is in the best interest of both the government and the taxpayer in question.
Is the IRS is threatening you with a bank levy? Your best course of action is to call an experienced tax attorney. At the Law Offices of Darrin T. Mish, P.A, I will do my best to prevent the IRS from freezing or seizing your hard-earned assets.