The IRS is difficult about releasing bank levies. A bird in the hand is worth two in the bush to them. The Government is under tremendous financial pressures because of it’s deficits and debt. Once the IRS has it’s hands on the money, it is reluctant to release it.
It is not impossible to get bank levies released, however! I write this post ten days before Christmas. Two weeks ago I got a 47 thousand dollar bank levy released for a taxpayer in Las Vegas. The facts were he had no other source of income and he was terminally ill with cancer. IRS is not entirely without the Christmas spirit.
A fellow tax representative has had quite a bit of trouble getting a 28 thousand dollar bank levy released. Her taxpayer is 66 years old, has little in the way of other assets and virtually the household’s only income is social security. She has repeatedly tried to get the levy released, but without success.
While this taxpayer is not terminally ill, the bank levy is clearly a hardship. The bank will pay the levy out in 21 days, so time is of the essence. I advised her to repeatedly go to IRS management and the Taxpayer Advocate. In my 30 years of experience, persistance resolves 90 per cent of all IRS problems. I also advised her to consider going to the media. The public should have sympathy for her taxpayer, particularly this time of year. Hope this helped.
Dana M. Ronald, Tax Crisis Institute