Why Did the Tax Agency Levy My Bank Account?

I had a client call me last week and said, “I’d been working with the government agency and with the EDD … why would they levy my bank account?” It’s really important to understand what side of the agency you’re on. Each taxing agency has an assessment side and a collection side. The collections department is the department that’s going to levy your bank account or file a lien against you for any money that is owed. If you receive a notice stating that you owe money, it is really important to go back and contact that collections department to set up a payment plan to get a hold on the account to make sure that you understand what they need to prevent a lien or levy. On the other side is the assessment side. If you’re working with the collection side, generally speaking, they’re not updating the assessment side and vice versa. The assessment side is determining the liability is working through the audit or the returns or the documentation. Most of the time, you need to be working with both sides, whether it’s the IRS or any state agency.

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Allison Soares

Allison Soares, a renowned tax attorney, excels in representing clients before the IRS, FTB, EDD, and CDTFA. With a Bachelor of Arts in Finance from the University of Wisconsin, Milwaukee, and a transformative teaching stint in Brazil, Allison’s diverse background enriches her legal expertise. She pursued law at St. Thomas University School of Law, Miami, complementing it with an MBA in accounting and forensic accounting. Further honing her skills, she obtained a Master of Laws in Taxation from the University of San Diego School of Law. As an adjunct professor at San Diego State University, Allison imparts her knowledge in tax procedures, practice, and ethics. Her accolades include being named Best of the Bar by the San Diego Business Journal and multiple Super Lawyer recognitions. Committed to community service, she volunteers with Forever Balboa Park and Friends of Balboa Park. Allison’s authoritative contributions in tax law are showcased through her publications and speaking engagements.

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