Hello... I have just had a tax levy against all my bank accounts today, including an account that is joint with my daughter. We did not receive any notification of this, and my husband states that we are current with all taxes (he is on hold with IRS now trying to get info); the IRS authorized my bank to transfer all monies into my savings account and charged me a $20 processing fee. Why would they do this and should I remove that money from savings immediately? until this is all sorted out?
State/Country relating to question: Colorado
bank will not give any information; have been on hold to the IRS number that bank supplied... need to know how to respond to IRS on this.
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IRS is not suppose to levy a bank account without notification. Normally you would have received 3-4 letters, would needed to have ignored those letters and then they would have had to send you a notification that they were about to levy the account.
You probably will not be able to remove the money out of the savings account without the IRS releasing the levy. Your husband is doing precisely the thing he needs to do - contact the IRS. He should be able to find out what the levy is for and hopefully resolve the matter.
It could be the case of a wrong Social Security number. If you have moved it might be the notices were sent to an old address since IRS was not provided with a new address. It could be an old debt that notices were sent years ago that IRS is now trying to collect again - we have been seeing a lot of that. Since the account is joint with your daughter, is it possible the levy is on her taxes and not yours? If your daughter is young, is it a case of identity theft or an incorrect Social Security number. It could be any number of things.
If the IRS says they do not have any knowledge of the levy which I have seen happen before it might be the bank has processed to the wrong account and in that case you need to get in touch with the bank to find out more information.
excellent .. thank you.. we have received no notifications from IRS and have always paid our taxes quarterly.. which is why so strange... I'm hoping a wrong SS # XX bank error (have not moved in 18 yrs), but they are closed for day and I plan to call in morning. My husband said IRS would have levied his account before mine if that was the case. Doubt if daughter .. she is military and only makes $250/mo. and my name is XX XXX account, but her name is XXX XX my account; they levied both.
ok... I'm now on phone with IRS... they would not give any information to my husband; apparently there is a 'single' account in my name / SS# XXXXXX in 2003; not sure how that happened and we always file jointly / married status.
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I switched out of chat mode since I answered twice and it is not accepting answers.
If the problem is with 2003 - take a look at your 2003 tax return. Does it have a correct SSN for you? Does the name match the name of your SS card for that year? Do you file the return electronically or a paper copy. It is possible if you filed a paper copy that the IRS keyed it in incorrectly.
If the numbers all match then it is possible that someone accidentally put your number on something that does not belong to you and you just need to get IRS to look at that.
Hopefully it will be something easy to resolve.
Make sure once you have a resolution from IRS that you get it in writing and request that they expedite it. Otherwise it could take 6-8 weeks for them to release the funds.
Also - avoid putting any more money in that account (and in that bank) since they will hold all future money until the lien has been released or satisfied.
27 years of preparing income tax returns - both personal and small business