IRS Levy on Your Bank Account?
We can stop an IRS levy on your bank account.
IRS Bank Levy
A bank levy is one way the IRS can legally collect taxes assessed as overdue. Among IRS collection experiences, it can be the most disruptive, alarming and surprising.
With just one notice to your bank, the IRS can freeze all monies in your account. Unlike a wage levy, you often won’t know a bank levy is in place until the funds are already seized. You may discover the bank levy only when a check bounces or you find yourself at a cash register, with no funds available in your account.
Avoiding a bank levy is ideal. Barring that, we can often stop a bank levy already in effect.
Get Help Stopping an IRS Bank Levy
What Happens When the IRS Levies Your Bank Account?
If the IRS determines that you owe taxes, they will issue you notice and a Demand for Payment. After several notices you may receive a Final Notice of Intent to Levy and a Notice of Your Right to a Hearing. The IRS can levy your bank account 30 days after issuing the final notice.
How does the IRS levy a bank account?
Often, the IRS has your financial account information on file. They can legally levy your checking, savings and even retirement accounts.
If the IRS chooses a bank levy as the means of collection, they will contact your bank and require a hold on any funds in your account. That hold is in effect for 21 days—a period during which you can act to stop the levy. After the 21 days have passed, unless the levy is reversed, your bank must transfer the funds to the IRS.
If the initial bank levy does not satisfy the debt in full, the IRS can go back to your bank for additional monies.
How We Can Stop an IRS Bank Levy
The 21-day period is our opportunity to act. Of course, you can pay the full amount of the tax owing, penalty and interest, if you are able.
Most people don’t have this option, but we can still help you remove an IRS bank levy.
The IRS is legally required to release the levy if we:
There are other circumstances under which the IRS may consider releasing your funds. For example, we can challenge the IRS on their adherence to procedures for applying a bank levy.
When you work with our team of IRS tax experts, we can often get a bank levy stopped in just 24-hours.
Our success rate in negotiating OICs—one of the most favorable outcomes possible—is 94%, and our OIC clients pay on average only 3.6% of their original tax debt. That’s why in more than 700 reviews, Precision Tax Relief has a 98% satisfaction rating.
Get Help Stopping an IRS Bank Levy
FAQs on IRS Bank Levies
The IRS can legally levy your account(s) if:
- They have determined that you owe back taxes and sent notice to demand payment;
- You have not paid the tax assessed as due and/or have not responded;
- The IRS sent a Final Notice of Intent to Levy.
If you have received letters from the IRS regarding a tax debt, and you cannot pay, you should work with a professional to negotiate a resolution as soon as possible.
No. The IRS cannot freeze and seize funds in your bank account without first providing written notice. When you effectively challenge the IRS claims in time, the bank levy can be prevented or released.
The IRS can levy all funds in your account up to the full amount of the tax debt, penalties and interest.
A bank levy is a one-time seizure of monies. It applies only to the funds in your account at the time the bank processes the levy. To seize more funds, the bank would have to send a new levy to your bank after additional funds have been deposited.
The IRS can levy your bank account until the amount assessed as owing is recovered. In some cases, the IRS will issue bank levies approximately every month.
Your bank will hold the levied funds—freezing the levied amount—for 21 days before remitting the monies to the IRS. The 21-day period is an opportunity to have the funds released.
If the 21-day period has passed, you can still make a case that the funds were not legally levied. To do so, you should retain an experienced IRS tax professional to determine if the IRS levied properly.
We regularly stop IRS levies in just 24-hours. When you retain our services, our experienced tax professionals work urgently to stop IRS collection efforts while we negotiate a favorable resolution on your behalf.
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