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Bank Levy California

By Hafsa Binte Omar

A bank levy in California is an action taken by the government to collect unpaid taxes. It involves a seizure of property from a financial institution by the Internal Revenue Service (IRS). The purpose of this action is to ensure that the taxpayer pays their delinquent tax debt.

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7. Collecting the Judgment - money_selfhelp
The creditor will need to know the branch where the account is kept and, usually, the account number as well. You have 10 days to oppose the bank levy before ...

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  • How is a bank levy issued?

    A bank levy is issued through a Notice and Demand for Payment, which has been sent to the delinquent taxpayer. The notice explains that taxes are owed to the IRS, and further actions will be taken if they are not paid within 10 days. If payment isn't made, then the IRS can issue a bank levy against any financial accounts the taxpayer has with a financial institution.

    What funds are subject to seizure in California?

    The funds subject to seizure include all cash, checks, money market accounts, stocks, bonds and other items held by a financial institution on behalf of the taxpayer.

    Is there an exemption from levies?

    Yes, there is an exemption from levies for certain types of income such as Social Security benefits, VA disability compensation and public assistance payments. However, taxpayers should contact their local IRS office for more information about which payments may qualify for an exemption from levies.

    How long does it take before my assets are seized?

    Generally speaking it can take up three months or longer before your assets are seized by the IRS. During this period you may be contacted first by mail or phone regarding your outstanding tax debts or sought out payment arrangements with them so that you do not suffer any additional penalties or charges due process.

    What happens after my assets have been seized?

    After your assets have been seized by the IRS they will hold onto them while they process your payment installment plan or until you have paid off your delinquent taxes in full. If you require assistance with resolving your situation you can speak to qualified tax professionals who specialize in dealing with collection activities from the IRS and other taxing authorities.

    Bank levies in California can have serious consequences for taxpayers who fail to pay their taxes on time. It is important for taxpayers to understand exactly what a bank levy entails and their rights when dealing with collection agencies such as the IRS. If you need help understanding how best to deal with any unpaid tax liabilities then contact qualified tax professionals who can help guide you through this complex process.


    Hafsa Binte Omar

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