Judgment for ANY Seizures?

[lchesson]

NC

What exempts government from supplying a court ordered judgement when seizing bank funds?

And, what exempts banks from producing a court ordered judgement upon demand from property owner prior to surrendering said property to government, i.e., IRS?

 

[Snipes5]

We need a lot more information before we can touch that one, so how about an explanation first?

Snipes

 

[lchesson]

Here's more info...

Out of the blue, a levy notice from the irs AND a bank notice was received the same day. The only info provided to the bank was the 668 notice of levy, and they sent funds to the irs based on this notice.

I am not interested in whether or not the irs engaged in lawful activity; only if the bank acted appropiately by releasing property without a judicial order.

Thank you.

 

[Snipes5]

IRS Levy notices don't just appear out of the blue. The IRS has a process it must go through before serving a Levy, not the least of which is the "Notice of Intent to Levy", normally sent with 30 days notice, via certified mail. I know you aren't questioning the legality of the IRS' actions, but it is relevant.

26 US Code gives the IRS the right to Levy bank accounts and other taxpayer property. It would therefore appear that they do not need a judicial order, and in fact, according to what I read, if a summons is issued for bank information, the bank is then required to give them more information than they would receive without the summons.

Try this: http://www.irs.gov/businesses/small/article/0,,id=126903,00.html

You have no recourse against the bank if the IRS did things properly, anymore than you would have recourse against the county if the IRS filed a lien against real property. You can't separate one from the other.

Snipes

 

[lchesson]

"You have no recourse against the bank if the IRS did things properly..."

Are you saying the bank has a fudiciary responsibility to ensure the IRS follows procedures before turning over the money, especially if the bank was notified that the levy 'notice' is in dispute?

Many thanks for your replies, sir.

 

[Snipes5]

No, I am saying that it is NOT the bank's responsibility to question the legality of a levy from the IRS. It is the taxpayer's responsibility to do that. If a levy is served to the bank, the bank must comply, as required by law.

The taxpayer cannot prevent the bank from complying with the levy. The only way to stop or remove a levy is through contact with the IRS. If you feel the IRS is in error, and you are getting nowhere with them, I advise you to contact the office of the Taxpayer Advocate, whose job it is to work out these sorts of things if the IRS is being improper.

It works the same way if your employer is served a notice to levy your wages. The employer is required to comply, and is not in a position to question whether the levy is legal or not. It isn't relevant, either to the bank or to the employer.

Snipes