IRS Tax LIen

[howdidithappen]

I will be filing in the very near future. Two of my bank accounts were just hit for IRS tax liens - one yesterday and one today. Does anyone know how often the IRS will place a lien on my account? Will they try again tomorrow? How about the 1st of the month? I now have no money to live on for the rest of the month and of course some criticial bills that must be paid...

[HHM]

Well, let's get the terminology right, the IRS "levied" (or placed a levy) on your bank accounts, they did not "lien" your account. A levy is a garnishment.

Got to www.irs.gov. Do a search for the "Tax Payer Advocate" and call them ASAP. You want to request a Hardship release of the levy. Banks are required to hold the funds for 21 days before sending them to the IRS. During that time, you can try to sort out the issue with the IRS. Be prepared to provide basic financial information, (pay stubs, expenses, etc).

[howdidithappen]

Thank you for the reply. I will call them or would it be better to speak with a bk lawyer since I will be filing? The bank told me it was a lien - "IRS Tax Lien" is posted on my statements online.

[HHM]

If they "took" money, it is a levy.

The IRS sends "liens" to only 2 places, the county recorder where you live, or the Secretary of State

If you want to try to get the money back...call the IRS. BK is of no help in this limited scenario.

[Ifonly]

You should be able to find your case agent's name and direct contact info. on the correspondence the IRS sent you. No offense, I'm sure you have correspondence from them as they usually utilize levys, etc. only when they've failed to receive a payment workout from you or contact from you. HHM is correct. BK is of no help here - the most that BK will do for you is allow you to pay off back taxes as priority debt without incurring further interest and penalties.

[howdidithappen]

I have since filed chapter 7. How important is the filing date at this point for determining if the levied funds will be turned over to me?

[HHM]

They are gone.

If it is still within the 21 days from the date of levy, the trustee (if he/she is smart enough) could grab them. but not likely.

[howdidithappen]

My attorney told me they would be returned to me but was unsure of the date they would be returned. I filed prior to the turnover date (but not the levy date).