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When you’re running a business, few things are more alarming than suddenly losing access to your bank account. If you’re a Missouri business owner and the IRS issues a bank levy, it can disrupt operations, jeopardize payroll, and put your financial future at risk. In this article, we’ll shed light on…
- What really happens when IRS bank levies in Missouri occur.
- Your rights when the IRS freezes your bank account.
- How a tax attorney can help you appeal the freeze and represent your interests.
What Does It Mean When The IRS Freezes My Bank Account In Missouri?
When the IRS freezes your bank account, it means you temporarily lose access to those funds. Here’s what typically happens:
- The IRS issues a levy, and your bank must hold the funds in your account for 21 days before sending them to the IRS.
- During that 21-day window, you can try to have the levy lifted.
- If the levy isn’t lifted in time, the money is transferred to the IRS.
IRS bank levies are a one-time action, meaning only the funds available on the date of the levy are at risk. For example, if your account is levied on June 21st and has $1,500 in it, that’s all the IRS can claim. However, Missouri state levies are far more aggressive. Under a Missouri Supreme Court rule:
- Funds deposited after the levy date can also be seized.
- A Missouri bank levy can stay in effect for up to 180 days.
As a result, you should avoid depositing any new funds into an account once it’s been levied by the state.
How Do Business Owners Usually Find Out Their Bank Account Was Frozen By The IRS?
Unfortunately, you’ll usually find out after the fact and not from the IRS or the State of Missouri directly. Most business owners learn about a freeze from their bank. The IRS must now send a series of notices before issuing a levy, including a final Intent to Levy letter via certified mail. These protections were established in 1998 to ensure due process.
The State of Missouri, however, does not have to notify you ahead of time. Once a judgment is filed in your local county, the state can proceed with a levy, often without you even knowing a judgment exists.
Lance Drury, founder of The Law Office of Lance R. Drury, is a seasoned tax attorney serving business owners across Missouri. With years of experience handling complex IRS and Missouri Department of Revenue issues, Mr. Drury has successfully guided countless clients through the financial chaos caused by tax levies and frozen accounts. His deep knowledge of both federal and state tax enforcement makes him uniquely qualified to help protect your business and personal assets.
If your bank account has been levied, don’t put off getting the help you need. Contact Lance Drury today for a free confidential consultation and take back control of your finances.
What Legal Rights Do I Have When The IRS Freezes My Business Account?
Your legal rights vary depending on whether the levy is from the IRS or the State of Missouri. With the IRS, you can request the levy be lifted, either fully or partially, by proving financial hardship. This involves submitting detailed financial statements.
With the state of Missouri, you generally cannot negotiate or settle during the levy period. However, you do have the right to appeal, which typically takes at least 30 days to process. It’s important to note that it’s much harder to get a Missouri levy lifted than an IRS one.
What Role Can A Tax Attorney Play In Appealing The Freeze?
A tax attorney plays a key role in negotiating with the IRS or the State on your behalf. Not only can they help demonstrate financial hardship using complex financial documentation, but they’ll also have the understanding and experience you need. Whether navigating IRS procedures or dealing with IRS and Missouri Department of Revenue protocols, a tax attorney will have you covered.
The process can be confusing and overwhelming. A seasoned attorney knows the system, including all the legal strategies that can help get levies lifted more quickly and with better outcomes.
What Are The Most Common Mistakes Business Owners Make Before Or After A Bank Levy?
The most common misstep people make with the IRS is ignoring the warning letters that precede the levy. Many business owners don’t take action until it’s too late.
For Missouri levies, the problem is different: there usually aren’t any warning letters, so there’s little you can do to prepare unless you’re actively monitoring Casenet for filings.
Either way, once a levy hits, the key is to:
- Avoid making hasty financial moves.
- Do not deposit new funds into a levied account, especially in Missouri.
- Act quickly to prove financial hardship with the help of a tax professional.
If you’re a Missouri business owner facing a bank levy from the IRS or the State, don’t try to go it alone. The rules are strict, and the consequences are serious. An experienced tax attorney can help you understand your rights, protect your finances, and guide you through the process of getting the levy released.
Still Have Questions? Ready To Get Started?
For more information on IRS bank levies in Missouri, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (314) 260-6120 today.
