bank / fed lien issue

[kelt65]

from Louisiana

I have some serious federal tax problems, but not really the IRS, my question is about levies and what the bank can do.

In May a levy was put against me, which was far more money than I could possibly have, and my checking account was emptied. OK, fine, my fault. My bank, however, did not indicate this on my balance at all and accessed NSF charges against everything I was charging, amounting to about $1000. The forced check was not even visible in my available balance. I called the IRS shortly after it was evident I was penniless and worked out something with them, they informed my no more drafts would be made from my account as long as I filed my returns for the years I hadn't filed by a certain date.

I deposited some money in my account, a loan to get me through. (I have no other money). Two weeks later the same thing happened - I have no money and it is not showing up on my balance. I call the IRS and they have no idea what I'm talking about, and haven't recieved anything from my bank. they explain to me the levy is a one time thing and that the banjk is not supposed to continue to draft funds to the IRS from my account.

I talk to my bank and at first the officer sees nothing wrong with my account, a balance of roughly $4500, except when I point out to him all the inexplicable NSF charges that are there (even more this time). He says he will investigate and the next day my balance shows another forced check to the IRS for the full amount of my balance.

Can my bank do this to me? The IRS agents I talked to say this is not how it is supposed to be handled - the levy is a ONE TIME draft. This has completely ruined me, I can't afford a lawyer, I'm penniless now, and according to my bank, I owe them even more money. The NSF charges due to me not knowing i had $0 amount to over $3000. I can't believe this is legal to completely destroy a person in this way. This does not help anyone, including the IRS, in getting their money, regardless of what I think of taxes. I've switched banks but have no way to pay any bills, I'm screwed. I don't have any money anyway and have a perfectly lower middle class income.

Can a bank really do this? Is it at their discretion to draft money from my account to pay the IRS, without even reflecting it on my balance, so that I don't even know if it happened without physically going to the bank and talking to an manager?!?

[echogirl3142]

how much was the IRS levy for? How much did more was the levy than was in your account? i'm asking because if say the levy was for 2000.00 and you only had 200.00 in your account at the time, the bank will most likely keep taking the money that you deposit till the two even out. so in my example the levy was not met by 1800.00 therefore until that is deposited they won't remove the "hold" on your account which is what they did when they recieved the levy..usually they do this because of what is called "right of offset"...let me know....

[StephenH]

You may want to go to [url]www.irs.gov[/url] and read about "The Collection Process". If they did violate collection rules, you may want to contact an attorney or a tax service.

Additionally, you may want to file an installment agreement with them, which may release the levy.