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The question: Must the information on the IRS Bank Levy match perfectly?
IRS Answer: The bank must “Make a reasonable effort to identify all property and rights to property belonging to this person. At a minimum, search your records using the taxpayer’s name, address, and identifying number(s) shown on this form.”
The IRS instructions do not require a perfect match of all information.
In the event there is a question regarding what the federal levy attaches, the bank should contact the revenue officer or IRS employee whose name appears on the levy. Once the IRS finds out another possible levy source, the IRS will issue another tax levy.
A bank levy attaches to the property of the taxpayer named on the levy; even though the TIN on the bank account does not match the TIN on the levy.
The TIN is not the sole indicator of the taxpayer’s property or right to property in a bank account. Multiple factors may be considered to validate ownership, including similar names, addresses, entity types and other identifying characteristics.
In some cases, it may be reasonable for the depository to identify an account based on a single matching identifier. In other cases, it may be appropriate for the depository to corroborate one matching identifier by matching one or more additional identifiers. In the following examples, it would be reasonable for the depositary to call the contact number on the levy for guidance.
How to stop the IRS Enforcement Computer System: BANK LEVIES
IRS requires three specific things to stop enforcement action:
- IRS will need ALL tax returns filed and brought current. IRS will not release any tax levies until this happens.
- IRS will need a current financial statement, a 433F, with documentation to verify that the financial statement is correct.
- IRS will need to know how you are planning to close your case. The Three options in closing your case are:
- that you are under a current hardship and cannot pay at this time
- that you want to enter into a Installment Agreement or payment plan with the IRS
- that you want to file a quality Offer in Compromise with the IRS
One of the certified tax professionals at Fresh Start Tax will guide you through this process to get you the best possible result.
