*Loan,banking and credit>>>tax advice

"irs tax levy" advice?

Got a notification of an IRS tax levy on our bank account this evening... as of now, our bank account has not been frozen, but I just paid $1100 in bills over the phone and internet earlier today. I can expect that they will be freezing the balance very soon, and probably after the holiday. I owe more to the IRS than what is in my bank account. I can imagine these transactions will just be refused. I have my paycheck scheduled for direct deposit on Friday and it's too late to cancel... should I take as much money out at the atm is possible? What should I do??

I would highly suggest that you be proactive on Wednesday, and talk to your banker to see if there is something you can do to protect yourself against overdrafts, etc. In addition, contact the IRS at 1-800-829-1040 to see if there is something you can do at this point to keep them from garnishing your account. Usually, at this point, there's not much they will do, as they have been sending notices for several months before they ever attempt garnsihments.

If you paid your before prior to 4pm local time, they should hit tonight......w/ tomorrow being a holiday......don't take any money out......I would hope that the bills clear before the IRS freeze hits....

Most bank garnishments are a one-time event....so if the garnishment hits before your paycheck....your paycheck may not even get in.....talk to the bank first thing on Wednesday and ask specifically if funds are still allowed into a frozen account....

The bank garnishment should be just for the amount at the time of the garnishment.....If the account is frozen on Thursday and money comes into the account Friday, THEORHETICALLY, the IRS garnishment cannot include the additional funds.

Further, you can appeal the garnishment.....w/out an attorney...find out what court issued the garnishment and get down there and find out how to request a hearing..

Most banks will "hold" the garnished funds for 10 days - I don't know if that applies to IRS garnishments, but it's worth looking into.....START GOOGLING your state laws on garnishments and appeals and anything else you can think of....You'll be behind the gun since tomorrow's a holiday.

good luck and NEVER have your paycheck direct deposited when you have any kind of bad debt....as you've learned, it is very easy to lose your entire bank account.