1. What is an IRS bank levy?
An IRS bank levy is a legal action taken by the Internal Revenue Service (IRS) to collect unpaid taxes. When the IRS levies your bank account, they freeze the funds in it and eventually withdraw the amount owed to satisfy your tax debt.
2. Why would the IRS levy my bank account?
The IRS may levy your bank account for various reasons, including:
a. Unpaid Taxes: If you have unpaid federal taxes, the IRS can use a bank levy to collect the amount owed.
b. Ignoring Tax Notices: Failure to respond to IRS notices or communicate about your tax debt may prompt the IRS to take aggressive collection actions, such as levying your bank account.
c. Lack of Communication: Ignoring IRS attempts to reach you or disregarding their requests for payment can lead to a bank levy.
d. Tax Audit Findings: If the IRS conducts an audit and determines that you owe additional taxes, they may choose to levy your bank account if you fail to address the tax assessment.
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