Bank Levies


What is an IRS bank Levy? How does an IRS Levy work? What can you do about an IRS bank Levy?

An IRS bank levy is an enforced collection action where a taxpayer's bank account is seized. 

When a bank levy is imposed, the IRS freezes the taxpayer's bank acount for 21 days. In the process, the taxpayer cannot acccess his funds nor withdraw money (except when the account balance is greater than the tax liability). The taxpayer will not be able to paying using debit card. The debit card will not be honored. If the taxpayer has outstanding checks before the levy was placed, these checks will not clear. After the 21-day period, the bank is expected to give either the total amount available in the bank account, or to remit full payment to the IRS from the taxpayer's account. 

How does an IRS bank levy get lifted or released?

The IRS allows the taxpayer 21 days to "fix" their tax problem before the bank remits the funds. The IRS allows a taxpayer to contact the IRS after a bank account is levied and work out the problem. The IRS will release a bank levy if the taxpayer can show a hardship. Has the IRS bank levy cause the taxpayer a hardship? Ways to show a hardship are an eviction notice, a foreclosure notice, a utility disconnection notice, or a grave medical concern. The IRS will release a bank levy if the IRS has made an error.

What should you do about a bank levy?

If the IRS is seizing your property or wages, you have a serious problem.

If you bank account has been seized, or if your wages have been garnished, contact our office immediately. You don't have time to waste. It takes us 2-5 business days to get a levy released. Act now or it may be too late!


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