Creditors always make mistakes. Prove that you have been the victim of identity theft. If the tax is for a debt that can be paid off (student loans, child support, and taxes don't qualify), bankruptcy may be your next option. Once the debts are removed from your credit history, the garnishment will be removed.
Once a garnishment has been established, the creditor can continue to withdraw funds from your bank account until the entire debt is paid. You may be able to get the rate suspended by assuming the obligation, making a payment agreement, or paying off the debt. One of the first questions you can ask is “what is a bank rate? This type of garnishment is a court-sanctioned legal action that allows creditors to withdraw money from your bank account if you have a debt. When a garnishment is issued, your bank accounts are frozen and you cannot access the money in your account until the debt has been paid.
Knowing what to do if your bank account is collected could prevent the total or partial seizure of your funds. Be sure to get professional advice about your state's bank tax laws and how an enforcement order will affect your bank account. Most creditors need to get a court order to garnish your bank account, but some federal organizations, such as the Internal Revenue Service, can simply send you a letter informing you that they will garnish your account if you don't pay in full. A creditor cannot seize your bank account without first winning a court judgment against you and then obtaining a court order to seize your bank account.
If a creditor can establish that you have an outstanding debt, they may be able to use a collection action called a bank rate. In other states, you may be able to protect your bank account from garnishment if you get SSI, veterans, or other federal benefits. You may have no idea what the IRS tax codes are for bank levies or what your rights as a taxpayer are during your case. If a creditor obtains a court judgment against you, you may be able to apply to the court for a bank garnishment, a process in which the creditor takes the money from your bank account to pay a court-ordered debt.
You might be surprised to learn that the IRS can be sympathetic to taxpayers who would experience real financial difficulty if their bank accounts were charged. The garnishment process generally begins when the court issues a judgment against you and issues an order to seize your bank account. Most creditors will have to overcome some legal obstacles to do so, but some government agencies don't need to go to court before collecting your bank account. Seeking the advice of a local lawyer familiar with state and local laws can help you if you are facing a bank garnishment.
If you're not sure who's collecting your account, your bank should be able to provide the creditor's contact information. If you're having trouble with a bank garnishment on your account, contact the best tax attorneys and tax lien attorneys at Whelan Tax.