QUESTION
Is it legal for IRS to wipe out my bank account without any notice to my employer or me?
Asked on Jan 04th, 2013 on Taxation - Colorado
More details to this question:
Our forms from 2010 were not done correctly and after having them fixed by our accountant we continued to get notices from the IRS saying that they were looking into the matter and to do nothing. We did receive a form from the IRS asking us to fill it out about a possible payment arrangement. It leaves us nothing to pay our monthly bills.
5 ANSWERS
The IRS is required to send out a Letter 1058, Final Notice of Intent to Levy, and allow you an opportunity for a hearing before they can levy your property (i.e., bank account, wages, etc.). It is sent by certified mail to your last known address. Notwithstanding this, IRS will agree to release all or part of the monies levied in your bank account under limited circumstances. It's best to contact a professional and request IRS to release the levied funds.
Answered on Jan 10th, 2013 at 7:47 PM
They are required to send you a notice of intent to levy prior to issuing a levy on your bank account. They probably did send it, but you disregarded it (that is what most people do). I suggest you contact a tax attorney pronto.
Answered on Jan 10th, 2013 at 7:47 PM
Taxation Law Attorney serving Sacramento, CA
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Rex Halverson & Associates, LLP
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Sorry; I cannot help you as I do only CA tax advice. However, IRS does have broad authority. Contact the Taxpayer Advocate at the IRS. You will find the contact information on the IRS' website. You can work out a payment plan with the Advocate if the taking of funds was unfair. You might also get some money back.
Answered on Jan 10th, 2013 at 7:46 PM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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You probably received (from the IRS) a "Notice of Intent to Levy." Shortly after that notice the IRS will take whatever is in the account that is being levied on.
Answered on Jan 10th, 2013 at 7:46 PM
No, the IRS cannot wipe out your bank account without notice to you. IRS is required to send you a series of warning letters prior to any bank levy, and some of these letters are required to be sent via certified mail. Your employer has nothing to do with your personal bank account, and is not required to be notified.
Answered on Jan 08th, 2013 at 5:06 PM