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:
- Negotiate an Offer in Compromise (OIC) or a Streamlined Installment Agreement that includes the release of the bank levy;
- Make a case that the bank levy is creating a significant economic hardship;
- Prove that the legal period during which the IRS can pursue collection (the statute of limitations) ended before the levy was served.
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
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