If the IRS freezes your account through a bank levy, you will have 21 days before they seize all of the money out of your account. Take advantage of this short time and take the necessary steps to protect your money:
Hardship Plan: Send a letter to the IRS with evidence proving that if they levy your bank account you will not be able to meet the standards of basic living.
Payment Plan: Negotiate a payment plan (usually in the form of an Installment Agreement or Partial Payment Installment Agreement) with the IRS in which you will pay a monthly amount on your debt. The bank levy will be removed as long as you continue to pay monthly and on time.
Negotiate a Settlement: It will be hard, but it’s possible to negotiate a settlement with the IRS to have your debt quickly paid in one lump sum. It’s a good idea to speak with a tax professional if you want to pursue this course of action.
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