Having money removed from your bank account or your paycheck by IRS is not entirely new. This money is called ‘levy’ when it is removed from your bank account, and ‘wage garnishment’ if from your paycheck. When this happens, there are ways to go about it. You can ask the IRS to remove the levy, but you would need to enter into a payment agreement with the IRS or settle all your outstanding back taxes.
How Do I Get A Tax Levy Released?
Paying the outstanding back taxes is not always possible, thus forcing you to settle for the payment plan agreement option. However, people looking to go for the payment plan agreement option are always worried about how long to complete the paperwork and have the IRS release the removed levy/garnishment or stop removing fresh charges.
This will be possible if you haven’t secured a payment extension prior to the agreements. An extension request, when granted, could give you an additional 120 days. However, if you are being levied, the longest extension you can get to sort the balance, pay down the balance, or enter into payment agreement is just 60 days.
If your extension to pay is granted, proceed to demand the immediate release of your levy/garnishment. You can also request that your employer/bank/payer be furnished with the levy release when speaking to the IRS representative.
This means an immediate release of your levy/garnishment release can be arranged with the IRS, once you have met the terms of the extension-to-pay agreement.
Another way to push for an instant levy release is to call the IRS and ask for a simple monthly payment plan or a streamlined installment agreement. You can finetune and finalize the agreement on the phone with the IRS representative, while the levy release is faxed to your employer/payer/banker immediately.
In the case of a bank levy, the funds will undergo a 21-day freezing period in the bank before it is remitted to the IRS. Hence, you should try to remediate the problem as soon as possible by getting in touch with one of our tax experts, from here, we can set up an agreement as soon as possible. The bank levy will be released, and subsequently, your funds once you complete the simplified installment agreement or secure an extension to pay.