Tax Relief with Logan Allec, CPA
Do you owe back taxes to the IRS or your state government or have unfiled tax returns? Then this is the podcast for you! Every Monday, Wednesday, and Friday, Logan Allec, CPA — owner of A+ BBB-accredited tax resolution firm Choice Tax Relief — explains exactly how to get tax relief for your back tax debt. Would you like a FREE tax relief consultation with Logan's company, Choice Tax Relief? Schedule your consultation now by calling 866-8000-TAX!
Tax Relief with Logan Allec, CPA
Can the State Levy Your Bank Account for Back Taxes?
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Do you owe at least $10,000 in back taxes? Book your FREE consultation with Choice Tax Relief by calling 866-8000-TAX or booking here:
https://choicetaxrelief.com/free-tax-...
If your bank account is frozen over state taxes, my team can help you understand your options and next steps. Free. No obligation. No judgment.
Can your state levy your bank account for back taxes? Yes. Logan Allec, CPA, walks through a California Franchise Tax Board bank-levy notice and explains what to check when your funds are frozen, how state tax-relief options differ from IRS options, and why you need to act before the bank sends the money.
IF YOUR ACCOUNT IS FROZEN
• Identify the issuing tax agency, the amount held, and the bank's transfer date.
• Contact the agency promptly about a release, hardship, an error, exempt funds, or an available payment arrangement. Approval depends on your facts and state rules.
• Confirm that the bank actually received any release. A request or payment-plan application alone does not guarantee the money will be returned.
CHAPTERS
0:00 A real state bank-levy notice
1:05 How long are the funds frozen?
1:37 Which funds does the levy attach to?
2:11 State hardship and payment options
3:09 State settlements and collection deadlines
3:35 Asking the state to release a levy
4:12 Coordinating state and IRS tax debt
5:00 Get help with your tax debt
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IMPORTANT CLARIFICATIONS
• California is the example in this video. Other states have different notice requirements, holding periods, exemptions, remedies, and collection deadlines.
• For California FTB bank orders covered by Revenue and Taxation Code section 18670, the minimum holding period is 10 BUSINESS days from the bank's receipt of the notice. Verify the actual transfer date with your bank; do not count from when you opened the letter.
• The discussion of later deposits concerns the one-time bank levy shown. New levies and other types of collection orders can affect additional funds.
• An existing state tax payment can affect an IRS financial analysis, but a dollar-for-dollar reduction is NOT guaranteed. IRS rules may limit or prorate the allowable payment depending on the timing of the agreement, your finances, and the resolution sought.
OFFICIAL RESOURCES
California FTB — help with withholding orders:
https://www.ftb.ca.gov/pay/collection...
California FTB — collection statute of limitations:
https://www.ftb.ca.gov/pay/collection...
IRS Financial Analysis Handbook — delinquent state and local taxes:
https://www.irs.gov/irm/part5/irm_05-...
General education; your state's law and your account history determine the options available to you.
#StateTaxes #BankLevy #TaxRelief