Emergency Tax Services: Stop Bank Levies and Wage Garnishments Now
Finding your bank account levied or wages garnished by the IRS is an urgent situation requiring immediate action. When the Internal Revenue Service or state taxing authorities seize your funds directly from bank accounts or garnish your wages, your financial stability is under immediate threat.
Michelle Turpin P.C. provides emergency tax services and collection defense to stop bank levies and wage garnishments. Our boutique tax law firm has over 100 years of collective experience exclusively practicing federal and state tax law, and our team includes former IRS and state tax attorneys who know exactly how these agencies operate.
Understanding Bank Levies and Wage Garnishments
Bank Levies Explained: A bank levy is a legal seizure of funds held in your savings, checking, or other bank accounts. When the IRS issues a levy, your financial institution receives a Notice of Levy requiring them to freeze your accounts and surrender the funds to satisfy your tax debt.
Wage Garnishments Defined: Unlike a bank levy which is a one-time seizure, wage garnishment is an ongoing collection action where the IRS directs your employer to withhold a significant portion of your wages until your tax debt is satisfied.
State Levies and Garnishments: State taxing authorities, including the Utah State Tax Commission, also have the power to levy bank accounts and garnish wages for unpaid state income taxes, sales taxes, and other state tax obligations.
How Bank Levies Work: The 21-Day Hold Period
Upon receiving the federal levy notice, your bank immediately freezes the specified amount in your accounts and holds these funds for twenty-one days. This holding period provides a brief window of opportunity to negotiate with the IRS for release of the levy before the funds are permanently transferred to the government. During this critical period, you cannot access the frozen funds for any purpose, including paying essential bills, making payroll, or covering basic living expenses.
This is why you must act immediately. Every day of delay reduces your options.
How Wage Garnishments Work
The IRS serves your employer with a Notice of Levy on Wages, Salary and Other Income, which legally requires your employer to begin withholding a specified portion of your wages. Your employer has no choice but to comply with this federal requirement. The amount of wages subject to garnishment is determined by IRS tables that consider your filing status and number of dependents — these allowances are minimal and often leave taxpayers with insufficient income to meet basic living expenses.
Resolution Strategies
Installment Agreement Negotiations: Installment Agreements provide manageable monthly payment arrangements that satisfy IRS collection requirements while allowing taxpayers to maintain financial stability.
Offer in Compromise Representation: For taxpayers who cannot afford to pay their full tax debt, Offer in Compromise settlements allow resolution of tax debt for less than the full amount owed.
Currently Not Collectible Status: When taxpayers face genuine financial hardship, the IRS may agree to suspend collection activities by placing accounts in Currently Not Collectible status.
Penalty Abatement Strategies: Significant portions of tax debt often consist of penalties and interest that may be eligible for abatement based on reasonable cause or other factors.
Results vary by case. This content does not constitute tax advice. Consultation needed for specific guidance.